Q.69
Arrange the following theories in chronological order according to its announcement
(A) . Sweezy’s Kinked Demand Curve
(B) . Neumann and Morgenstern’s Game Theory
(C) . Chamberlin's Monopolistic Competition
(D) . Cournot's Duopoly Model
Choose the correct answer from the options given below:
- Chronological Development of Market and Game Theories:
- Cournot's Duopoly Model $\rightarrow$ 1838: Formulated by French mathematician Antoine Augustin Cournot in “Recherches sur les principes mathématiques de la théorie des richesses”, modeling simultaneous output-choice competition between two firms.
- Chamberlin's Monopolistic Competition $\rightarrow$ 1933: Published by Edward Chamberlin in his landmark book “The Theory of Monopolistic Competition” (concurrently with Joan Robinson's “Economics of Imperfect Competition”).
- Sweezy's Kinked Demand Curve Model $\rightarrow$ 1939: Formulated by Paul Sweezy in “Demand Under Conditions of Oligopoly” to explain price rigidity in oligopolistic markets.
- Neumann and Morgenstern's Game Theory $\rightarrow$ 1944: John von Neumann and Oskar Morgenstern published their foundational masterpiece “Theory of Games and Economic Behavior”, establishing formal cooperative and non-cooperative game theory.
- Correct Chronological Sequence: (D) 1838 $\rightarrow$ (C) 1933 $\rightarrow$ (A) 1939 $\rightarrow$ (B) 1944, corresponding to Option 3.
Correct option: (3) (D), (C), (A), (B)
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