Perfect competition according to Enrico Barone

The Italian economist Enrico Barone (1859- 1924) is best known for his contributions to marginal productivity theory and the socialist planning debate. This paper analyzes Barone’s contributions to the theory of perfect competition which are largely ignored in the secondary literature. It includes his methodology; the definition, conditions and outcomes of perfect competition; the institutional context of perfect competition; and the adjustment process. It also includes some of Barone’s graphs that illustrate the working of perfect competition. The paper demonstrates that Barone deserves a place in the history of the theory of perfect competition.