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Economics - History of Economic Thought | Foundations of a Pure Cost Theory

Foundations of a Pure Cost Theory

von Stackelberg, Heinrich

Translated by Bazin, D., Hill, R., Urch, L.

2014, XXIII, 142 p. 20 illus.

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  • The first translation of Heinrich von Stackelberg's book
  • A pioneering piece of work in terms of cost functions and multiproduct firms
  • A sound and polished analysis of vertical structures and transfer pricing
  • A revolution in the study of modern economics

Heinrich von Stackelberg’s book “Grundlagen einer reinen Kostentheorie,” published in 1932, was at the forefront of a growing conceptual revolution in the theory of the firm, a theory which appears more relevant than ever in today’s economic climate. In this work, Stackelberg masterfully builds a theoretical framework which he later develops in Market Structure and Equilibrium.


Foundations of a Pure Cost Theory represents the first translation of the original German version into English. This substantial book offers readers a critical and technical understanding of firms, how firms function and the environments in which they operate. Fundamental principles of cost production, market economy, optimum position and velocities of production are given prominence. Ultimately this work, which remains largely unknown, can be seen as a milestone text in our understanding of the strategies adopted by firms as a whole.

The book has been meticulously translated from German into English, retaining the author’s examples in their historical context and capturing the spirit of the time with all its subtlety and significance.

Content Level » Research

Keywords » Cost Production - Market Economy - Optimal Position - Velocities of Production

Related subjects » Applications - Economic Theory - History of Economic Thought - Production & Logistics

Table of contents 

Foreword.- Praise for the Book.- About the Translators.- Translators' Commentary.- 1 Foundations.- 2 Costs in Single Production.- 3 Costs in Joint Production.- 4 The Movement of Costs and the Structure of the Market Economy.- Appendix.

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