ABSTRACT
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As soon as full-cost and mark-up pricing emerged in the 1930s, neoclassical economists began interpreting the profit mark-up in terms of the price elasticity of demand. LEE & IRVINGLESSMAN provide a detailed historical explanation of this marginalization process as it took place in the UK. They also claim that neoclassical economists provided no empirical evidence to support their theoretical argument; in fact, they argue that no empirical evidence has ever been found which supports the neoclassical explanation of the mark-up. Thus, Lee & Irving-Lessman conclude that the neoclassical explanation of the mark-up can be dismissed.
