AN ECONOMIC INTERPRETATION OF NEOCLASSICAL MONOPOLY
         THEORY IN THE LIGHT OF AUSTRIAN SCHOOL

                     Andreas Stamate, Bucharest Academy of Economic Studies


ABSTRACT: The paper summarizes the contributions of the neoclassical and Austrian school of
thought in the field of monopoly theory arguing that the first uses non-operational concepts in
describing the entrepreneur’s actions on the market. The Austrian economic theory of free
competition is the opposite of perfect and pure competition which is the model used in most of
policy recommendations and also the intellectual legacy of neoclassicism. After proving that the
monopoly price can’t be scientifically determined and neither the consumer loss of welfare, the
paper raises the issue whether public policy should intervene in a case of monopoly.

Key words: monopoly, property rights, monopoly price, utility, consumer

JEL classification: B53, D41, P14