Robinson Crusoe Model as the Starting Point for Pure Economic Theory

Occupation: Director, Moscow School of Economics, Moscow State University M.V. Lomonosov
Affiliation: Moscow School of Economics, Moscow State University M.V. Lomonosov
Address: Russian Federation,

Journal name

Ekonomika i matematicheskie metody

Edition

Pages

5-20

Abstract

In the standard Positive economic science the Robinson Crusoe model is quite widely used as a kind of layout, allowing to illustrate various phenomena and processes typical for a developed market economy — the behavior of isolated producers and consumers, common patterns of economic dynamics, general equilibrium, problems of public finance etc. Pure economic theory is not limited to the task of constructing a set of models, each of which reflects different sides of reality. It is designed to substantiate logically both functional and genetic relationships between the elements of the economic system. The choice of research starting point is of particular importance for this approach as the initial model should, like an embryo, contain the basic characteristics of a developed economic organism in the “minimized form”. The article attempts to show that such opportunities are provided by the Robinson Crusoe Model: its analysis allows to introduce in the simplest form many important notions of economic theory, to determine the nature of maximizing behavior of economic agents, to designate the role of space and time in the economy, as well as to lay the groundwork for the next step of economic analysis — identifying the factors contributing to the formation of exchange relations and the social division of labor.

Keywords

pure economic theory, Robinson Crusoe model, maximization of welfare, scarce resources, production program, labor investments, problem of consumer choice, placement of production, uncertainty factor, the theory of the revealed preferences.

Received

13.08.2019

Publication date

22.08.2019

Number of characters

43869

Cite

GOST	Nekipelov A. Robinson Crusoe Model as the Starting Point for Pure Economic Theory // Ekonomika i matematicheskie metody – 2019. – V. 55. – Issue 3 C. 5-20 [Electronic resource]. URL: https://emm.jes.su/S042473880006034-6-1 (circulation date: 26.04.2024). DOI: 10.31857/S042473880006034-6
MLA	Nekipelov, Alexandr "Robinson Crusoe Model as the Starting Point for Pure Economic Theory." Ekonomika i matematicheskie metody 55.3 (2019):5-20. DOI: 10.31857/S042473880006034-6
APA	Nekipelov A. (2019). Robinson Crusoe Model as the Starting Point for Pure Economic Theory. Ekonomika i matematicheskie metody 55(3), pp.5-20 DOI: 10.31857/S042473880006034-6

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