THIS book is the result of thought and writing that span a period
of about twelve years, and that have undergone a good many trans-
formations. The individual ideas in it, generally speaking, are not
new, although it happens that a number of them were worked out
independently and only subsequently were found to have been held
by others. Whatever is novel and useful in this work lies in the
grouping and elaboration of the ideas. As a collectivity they pro-
vide a pathway to conclusions foreign to, and in some cases opposite
to, the generally accepted conclusions of contemporary economic
theory. More important, they provide tools for the study of certain
economic problems and bench marks for the making of welfare
judgments which, it is hoped, will be considered superior to those
now possessed by the economic theorist.

I am deeply conscious of the debt I owe to others, and of the
impossibility of acknowledging all the sources of help on which I
have drawn. I am under special obligation to John Maurice Clark,
whose guidance and critical insights have assisted me over many
rough spots, to George J. Stigler and Donald W. O'Connell for
numerous helpful criticisms, and to Horace Taylor for his early
encouragement which made possible the development of these
ideas. Responsibility for the present form and content of the book,
and for any errors or shortcomings in it, is of course my own.

LAWRENCE ABBOTT

Union College
Schenectady, New York
January, 1955

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