ABSTRACT

Traditional microeconomic theory is often described as the theory of choice. However, George Shackle, a life-long critic of traditional theory, also insisted that economic theory be grounded in the problem of choice. His conception of choice was rather different. For traditional theory, choice was related to the problem of allocating scarce means amongst multiple ends. Choice was denial — there is no such thing as a free lunch, so we have to decide what we have to give up in order to have lunch. The market was the instrument of allocating denial amongst the population. Those least willing to be denied, were willing to pay more to satisfy their ends with the scarce means.