ABSTRACT
One of the central ideas of Transformational Growth as developed by Edward Nell is that prices adjust less readily to changes in output in the mass-production than the pre-massproduction period. A key underlying reason for this difference is the Chandlerian notion that mass production implies mass marketing. In his book The Visible Hand (1977) Chandler describes the connection between mass production and mass marketing as follows:
The new mass producers were keenly aware of the national and international markets opened up by the new transportation and communication infrastructure. The potential of that market had impelled them to adopt the mass-production machinery. However, as long as merchandising enterprises were able to sell their goods, they saw little reason to build marketing organizations of their own. Once the inadequacies of existing marketers became clear, manufacturers integrated forward into marketing.
