Between Old and New: George Stigler’s Chicago Price Theory

The epigram in Alfred Marshall’s Principles of Economics, a keystone text for Chicago price theory, is natura non facit saltum—nature does not move in jumps. This chapter applies Marshall’s adage to the development of George J. Stigler’s understanding and practice of price theory. We begin with Stigler’s earliest writings when he was a graduate student, proceeding through his career to the point when, as a mature scholar Stigler wrote reflections on the place of his ideas in the changing landscape of neoclassical economics. The chapter identifies threads that run throughout Stigler’s work from beginning to end, along with other threads that change their twist over the course of his career. The chapter demonstrates the importance of history and biography to understanding of economic ideas.