Nama : Muhammad Bilal Asrori

NIM : 041911133142
Thorstein Veblen and American Instituional Economics
Ekonomi kelembagaan lahir karena adanya kritik terhadap ekonomi klasik. Ekonomi
kelembagaan mencoba menjelaskan kegagalan pasar yang terjadi pada ekonomi
klasik karena terdapat beberapa hal yang diabaikan oleh teori klasik.
Human Nature
 Humans are significantly more complex creature led by particular instinctive
behavior and habits
 People are curious beings who, by nature, hit upon new ways of doing things

1. Veblen’s Positive Analysis: The Interaction of Ceremony and Technology

 Interaction between technological institutions and ceremonial institution
constitute mainsprings of change
 Human instinct were a root of human institution
Conspicuous Consumption: A Digression on Sociology and Economics
As the expected conspicuous price rises from P’ 1, to P2’, to P3’, the demand curve
shifts to the rights, from D1 to D2, to D3. Tracing out the alternative equilibriums,
A, E, F yields an upward-sloping Veblenian demand curve
2. John Kenneth Galbraith: The Intitutionalists Popularizer
 One of the best-known social critics on the contemporary American Scene
 Harvard Faculty Member, Economic Adviser to The President, novelist, and
US Ambassador to India
His ideas
 The Process of countervailling power.
 The identification of social imbalance within the context of an affluent
society.
Competition Reconsidereded: Chamberlin And Robinson
 Most firms involve themselves not only in price competition but in non price
competition as well. Such as advertising and packaging (product differentiation).