Class 8: Advanced Microeconomics

September 20, 2016

Explore Adam Smith’s division of labor and Karl Marx’s barter economy from the perspective of social coordination through the hub and spoke model.

SCEPA and INET are proud to present an online economics class - advanced microeconomics - taught by Duncan Foley, the Leo Model Professor of Economics at The New School. The series includes videos of 14 class lectures, including Professor Foley's presentations and discussions with students.

Class 08: Social Coordination Problems in Classical Political Economy (Part A). 

The class begins with Smith’s tenets on division of labor, examining algebraically the terms under which a typical individual opts for diversification or specialization and how this process affects the embedment of spontaneous socialism into a society. Then, the discussion moves on to Marx’s barter economy. It focuses on the questions of whether the barter economy is a stable system of exchange and why money economy could be considered as a hub-and-spoke model with strong strategic complementarity. In other words, the fundamental issue debated is the importance of money to society.

Advanced Microeconomics: Information and Behavior in Political Economy | Lecture 08 Social Coordination Problems in Classical Political Economy (Part A) | Duncan Foley | Leo Model Professor of Economics at the New School for Social Research | Spring 2016