RIP William Baumol

We are saddened to learn of the passing of the great Economist William J Baumol whose contribution to the subject has been immense.

Many students will have come across the work of Baumol when studying alternative theories of the firm and in particular the objective of sales revenue maximisation rather than profit maximisation. Baumol also emphasised the importance of market structure in driving business innovation, arguing that a contestable oligopoly provided an ideal environment for research and development and a fast pace of dynamic efficiency.

Baumol is credited with this well-known quote!

"If all the world's economists were laid end to end, we wouldn't reach a conclusion"

Wikipedia entry

New York Times interview with Baumol