Idiosyncratic Features of Kalecki's Pricing Models

Abstract

The paper shows that Kalecki's pricing models have some surprising analytical properties which, for the most part, appear to have been both unintended and unrecognized by Kalecki. These include the possibility of multivalued demand levels at given prices and counterintuitive comparative statics. Most of these features are related to Kalecki's use of the (weighted) industry average price as a proxy for the prices of each ¢rm's competitors.