The American economist and the winner of the 1982 Nobel Prize in Economics, George J. Stigler (1911-1991) had earned immense global recognition and reputation for elaborating the Economic Theory of Regulation, also known as “Capture”.
Personal and academic life:
Born at Seattle in Washington, Stigler attended the University of Washington and the Northwestern University. He received his Ph.D. Degree from the University of Chicago in 1938. During the Second World War, he was in the Columbia University, engrossed in statistical and mathematical researches for the Manhattan Project. Later, he also acted as the Columbia University faculty between 1947 to 1958. He was also the founder-member of the Mont Pelerin Society, and acted ad its President from 1976 to 1978. Stigler was also awarded with the National Medal of Science in 1987.
Theories propounded:
In his 'Economic Theory of Regulation', George J. Stigler pointed out that various interest groups and other political contestants and associates utilized the authoritarian and legislative powers of the government in determining the regulations and laws for their own benefits and interests. In fact, the theory of George Joseph Stigler formed a significant part of the field of Public Choice in economics.
His extensive research works also included historical evolution of the economic thoughts.
George J. Stigler developed the theory of search unemployment in his article “Information in the Labor Market”, published in 1962.
Stigler advocated the “Law of Demand and Supply Elasticities” in his treatise 'The Intellectual and the Marketplace'. According to this theory, both demand and supply curves are inelastic in nature. In fact, Stigler bestowed this nature on the demand and supply curves, after doing lot of reference studies, which showed that almost all goods and services are destined to become inelastic ultimately.
Selected publications:
Production and Distribution Theories: 1870-1895 (1941)
The Economics of Information (1961)
The Intellectual and the Marketplace (1962)
A Dialogue on the Proper Economic Role of the State, co-authored by Paul Samuelson (1963)
Citizen and the State: Essays on Regulation (1975)
The Process and Progress of Economics (1982)
The Organization of Industry (1983)
The Theory of Price (1987)