Definition
George Stigler (January 3, 1911 – December 13, 1991) was an American economist renowned for his contributions to the Chicago School of economics, price theory, industrial organization, and the economics of regulation. He was awarded the Nobel Memorial Prize in Economic Sciences in 1982 for his seminal work on the theory of market regulation and the economics of information.
Overview
Stigler was born in New Haven, Connecticut, and earned his Ph.D. in economics from the University of California, Berkeley, in 1938 under the supervision of Harold Hotelling. He joined the faculty of the University of Chicago in 1947, where he spent the bulk of his academic career, becoming a leading figure in the Chicago School. His research emphasized the efficiency of markets, the role of information in economic decision‑making, and the mechanisms by which government regulation can be captured by the industries it is meant to oversee. Notable publications include The Theory of Price (1945), Industrial Market Structure and Economic Performance (1964), and The Theory of Economic Regulation (1971). Stigler also formulated "Stigler’s Law of Eponymy," which humorously observes that no scientific discovery is named after its original discoverer.
Etymology/Origin
The surname “Stigler” is of Germanic origin, derived from the Middle High German word stîgel, meaning “stalk” or “stem,” often used as a locational name for someone living near a prominent stalk or a place named Stiglen. The given name “George” is of Greek origin, from Georgios meaning “farmer” or “earth‑worker.”
Characteristics
- Price Theory and Market Structure: Stigler advanced the analysis of how prices convey information, influencing both theoretical and empirical studies of market behavior.
- Industrial Organization: He examined the determinants of market concentration and the performance implications of different industry structures, emphasizing the importance of entry barriers and economies of scale.
- Regulatory Economics: Stigler's theory of economic regulation argues that regulatory agencies often act in the interest of the industries they regulate (regulatory capture), rather than in the public interest.
- Information Economics: He highlighted the cost of acquiring information and its impact on market efficiency, laying groundwork for later developments in the economics of information.
- Teaching and Influence: As a professor at the University of Chicago, Stigler mentored a generation of economists, including notable figures such as Gary Becker and Robert Bork. His work helped shape the libertarian and free‑market orientation of the Chicago School.
Related Topics
- Chicago School of Economics
- Nobel Memorial Prize in Economic Sciences (1982)
- Theory of Price (Stigler, 1945)
- Industrial Organization
- Regulatory Capture
- Information Economics
- Stigler’s Law of Eponymy
- Harold Hotelling (doctoral advisor)
- Gary Becker (student)
- Gary S. Becker’s The Economic Approach to Human Behavior (influenced by Stigler’s methodologies)