9 Economic Theories You’ve Never Heard Of

Aaron Schnoor
Exploring Economics
3 min readJun 10, 2024

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Photo by rupixen on Unsplash

Economics, as a field, is rich with diverse theories that span across various schools of thought.

Beyond the mainstream theories widely taught and discussed, there are several obscure or less known theories that offer unique perspectives on economic behavior, decision-making, and policy.

Let’s take a look at some of those theories:

Bilateral Monopoly

A bilateral monopoly occurs when a market consists of only one supplier (which is called a monopoly) and one buyer (which is known as a monopsony).

This unique situation leads to an interesting negotiation dynamic between the buyer and seller, as both have equal market power.

It’s a less explored area that contrasts with the more common discussions on monopolies and competitive markets.

Veblen Goods

Named after American economist Thorstein Veblen, this theory revolves around the counterintuitive demand for goods as their prices increase.

Veblen goods are luxury items for which demand increases with price, a direct contradiction to the law of demand. This happens because higher prices confer a sense of exclusivity or status.

X-Efficiency Theory

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