Neoclassical and Marxian Conceptions of Production.

Incorporating information deficiencies into the neoclassical paradigm has introduced some broad similarities with the Marxian analysis of the labor process. Both approaches predict the existence of a variety of contractual regimes and that workers with equal productivities can be adjudged unequal in the market place. And, while the Marxian approach sees unemployment as inevitable, the new neoclassical models also allow for equilibrium unemployment. These similarities, and areas of divergence, in the assessment of productive efficiency and welfare are explored. A crucial difference arises from the individualism of the neoclassical model, as opposed to the class approach in the Marxian model. Copyright 1988 by Oxford University Press.