Price Theory

Examining the role of prices, markets, and incentives in a wide range of choices

The Chicago-style approach to analyzing individual economic behavior is often known as price theory because it begins with the fundamental role of prices, markets and incentives in economic activity. This approach is exemplified in the path-breaking work of UChicago economists Gary Becker, Ronald Coase, Milton Friedman, Sherwin Rosen, George Stigler, among others.

Price theory has been applied not only to the most fundamental topics of traditional economics such as consumption, saving, taxation, and regulation, but also sheds light on a wide range of other human behavior—crime and corruption, discrimination, marriage and more.

Today the Price Theory Initiative supports a range of programs and events that advance research in this area and prepare young scholars to work creatively in this enormously productive vein.

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