William Fellner

Born May 31, 1905, in Budapest. American economist.

After attending the University of Budapest, Fellner completed his education at the University of Berlin and the Institute of Technology in Zurich. From 1939 to 1952 he was a lecturer and professor of economics at the University of California, and from 1952 a professor at Yale University. He has served as economic consultant in various government agencies.

Fellner’s works deal with monetary theory, monopoly competition, and economic growth. Applying game theory when analyzing the behavior of several monopolists in the market, he held that monopoly pricing is dictated by the monopolies’ goal, which is to maximize total profits from any given branch of the economy, and prices are subsequently corrected by competition. By analyzing the structure of monopoly markets in isolation from such major factors as production, social conditions, and financial circumstances, Fellner eliminated from consideration the growing contradictions of modern capitalism. Fellner held that economic growth depends on purely psychological phenomena—the expectation of monetary gain coinciding with entrepreneurial investment plans—and that such growth is linked to effective monetary controls. Viewed objectively, Fellner’s concepts tend toward a justification of capitalism.