Chamberlin, Edward Hastings

Chamberlin, Edward Hastings (1899–1967) economist; born in La Couner, Wash. His book, Theory of Monopolistic Competition (1933, eighth and final edition 1962) is regarded as one of the most influential economic books of the 20th century. He spent many years at Harvard University, first as a doctoral student and then in a teaching capacity until his death in 1967. He served as chair of the department of economics during its "Golden Age" (1939–43) when it included several renowned economists. Theory of Monopolistic Competition is a market analysis that incorporates such factors as advertising, product differentiation, style and brand preference, and locational advantages. His interpretation concluded that monopolistic ventures lack long-term advantages to the sellers in the industry and that only normal profits will be realized. His so-called "tangency solution" was the major empirical implication of monopolistic competition theory. A collection of his other papers, Towards a More General Theory of Value, was published in 1957.