Neoclassical economics was first introduced by Thorstein Veblen, and is currently a mainstream philosophy that centers around the way in which prices, outputs, and income distribution is determined by the forces of supply and demand. The neoclassical school believes in rational consumers, both business and individual, attempting to maximize utility. Neoclassical economics is heavy with microeconomic theory, and explains the distribution of resources under the following assumptions:
Consumers have rational preferences among identifiable and valued outcomes.
Individuals maximize utility and firms maximize profits.
People act independently on the basis of full and relevant information.
Neoclassical theory supports economic equlibrium, the point in which utility is fully maximized, and that methodological individualism can explain economic regularities. The school of thought downplays the role of institutions as behavior conditioners.
Notable Neoclassical Economists
William Stanley Jevons