3. The ‘contending perspectives’ approach

Table 3a shows a module structure (plus readings and selected activities) for an Introductory Microeconomics module taught over one semester at a US college. Table 3b provides a contrast between the structure of a contending perspectives module and a conventional module.

Table 3a: Introductory microeconomics module (contending perspectives)

Topic	Heterodox resources (orthodox resources assumed readily available)
Introduction to economics What is economics? How is economics done? Some views on economics	Stretton, Chs. 1–3, 5, 7
Orthodox and heterodox perspectives on economics	Heilbroner, Teachings from the Worldly Philosophy (TWP), Chs. I–II, pp. 333–336, 208–211, 219–235, 297–330 Stretton, Chs. 7–10 Heilbroner, The Worldly Philosophers (WP), Chs. 1–2, 10
Demand Basic principles of demand; elasticity	Heilbroner, WP, Ch. 8 Heilbroner, TWP, Ch. V, pp. 247–263 Dollars and Sense, 2016, Chs. 2-3 Stretton, Chs. 19–27 Veblen Figure 7: biscuit experiment
Demand and advertising Informational advertising vs. persuasive advertising	Figure 8: Media watching exercise
Firms and production Costs, revenues and production	Dollars and Sense, 2016, Ch. 4 Stretton, Ch. 31–35 Smith, Book I, Ch. 1 Heilbroner, WP, Chs. 3, 6 Heilbroner, TWP, pp. 73–86, 90–95, Ch. IV Marx, Karl (1867) Capital, Vol. 1, Chs. 1 (sections 1, 2 and 4), 7 Figure 5: paper aeroplane experiment
Firms and competition Competition, monopoly, oligopoly and mergers	Dollars and Sense, 2016, Ch. 5
Profits Mechanics of profitability
Profits Consequences of profitability
Markets Supply and demand analysis	Heilbroner, WP, Chs. 3, 9 Heilbroner, TWP, pp. 55–98, 235–238 Stretton, Chs. 40–42 Market experiment
Markets   The free markets approach. How free are ‘free markets’? Do markets work? Stock markets	Dollars and Sense, 2016, Chs. 6-8 Stretton, Ch. 36–9 Keynes, Chs. 12 and 19 Figure 3: Kemp/Wunder
Markets and government Various views on the market–government relationship. Public goods, etc.	Dollars and Sense, 2016, Chs. 9-10 Heilbroner, WP, Chs. 5–6, 10 Heilbroner, TWP, pp. 98–105, 275–296

Table 3b: Contending perspectives module contrasted with a standard module (introductory microeconomics)

Contending perspectives	Standard
Introduction to economics What is economics? How is economics done? Some views on economics	Introduction to Economics What is economics? How is economics done?
Orthodox and heterodox perspectives on economics	Markets Supply and demand analysis
Demand Basic principles of demand; elasticity	Demand curves
Demand and advertising Informational advertising vs. persuasive advertising	Elasticity
Firms and production Costs, revenues and production	Production and costs
Firms and competition Competition, monopoly, oligopoly and mergers	Profit maximisation
Profits Mechanics of profitability	Factor markets
Profits Consequences of profitability	Structure–Conduct–Performance: Perfect competition
Markets Supply and demand analysis	Structure–Conduct–Performance: Monopoly
Markets   The free markets approach.  How free are ‘free markets’?  Do markets work? Stock markets	Market failure Public goods and externalities
Markets and government Various views on the market–government relationship. Public goods, etc.	Government intervention

Although the readings in Table 3a suggest that Stretton is being used extensively, the author did not require students to buy the book. Certain key parts of the book were placed in a reader and many copies were placed in the library for reference. Other key readings, such as short handouts and newspaper articles, were placed in the reader.

In the author’s contending perspectives module, there were two recommended texts: Real World Micro (Dollars and Sense, 2016), which encompassed a heterodox slant on real-world issues connected to consumers (such as credit card companies’ marketing schemes), firms (such as price gouging), markets (living wage movements), government policy (such as welfare reform), plus environmental and globalisation articles; and Heilbroner’s Worldly Philosophers. As Earl discusses, it may be useful to explain how economists came to their own views; but in any case, Heilbroner’s book adds some colour to the thoughts of famous economists in terms of their personal backgrounds and their historical context. Thus, engagement is achieved, as is the heterodox attention to history of thought. As shown in Table 3a, the readings from Heilbroner are interspersed into the programme as appropriate to invigorate certain topics. An alternative is to teach a block of history of thought at the beginning of the course (Barone, 1991).

One benefit to the teacher of such a module is that allows flexible thinking about the order of topics. A teacher could in theory adopt the conventional ordering of topics and begin with markets. The students learn the supply and demand diagram in order to grasp the concept of scarcity and its relation to price movements. Indeed, the first time the author ran the module, that was the path chosen. However, it is unnecessary to teach supply and demand first; moreover, that order is in many ways strange. For instance, we know that markets are where buyers and sellers meet yet we discuss markets well before buyers and sellers are discussed. Further, in a traditional introductory microeconomics module, we begin with markets and often end with them, i.e. through market failure and the role of government. It may make more sense to group those topics together.

Alternatively, we treat the level 1 micro in the same way as we do at level 2: we begin with the consumer rather than with the market. One way of introducing the topic of demand is to run a classroom experiment, as discussed in Figure 7.

At level 1, it is possible to discuss constrained maximisation, even without the formal framework or indifference curve analysis. By introducing the orthodox approach first, in which maximisation is a key element, the notion of constrained maximisation is intuitively more understandable. Similarly, though, by being made aware of heterodox objections, the student is already primed to criticise the notion. Students are thus able to ask questions about the demand curve itself, even as fundamental as questioning its existence.

The discussion of demand may lead into a discussion of the formation of preferences. Again, at introductory level, there need be no detailed discussion of the assumptions underlying demand theory. However, it is possible to state that choice is a product of prices, preferences and income; and that preferences are unexplained in the orthodox approach. Students may ask what the sources of preferences are. Various sources can be used to identify several factors, including the law, peer groups, families, religion and other traditions. This discussion leads into a heterodox theory of persuasion. At this point, as above, a discussion of Veblen can be slotted in, and students will become familiar with the concept of conspicuous consumption. At higher levels, one can examine at length heterodox critiques of the orthodox model of the consumer. However, at introductory level this is not necessary. Nevertheless, one can take the simple contrast that in the orthodox approach, advertising is informative, and in the heterodox approach, advertising is persuasive. This can lead to an interesting lecture and classroom discussion of a selection of advertisements. A way of exploring advertisements is to give students an assignment that involves watching television or some other media. It is assumed that students would enjoy this. The assignment is described in Figure 8.

That form of assignment illustrates the key elements in assessment using the contending perspectives approach. First, ascertain that the material has been understood. Second, apply the knowledge to an issue. So far, so conventional. Third, ask the students to compare the contending approaches; and fourth – perhaps most difficult of all – ask them to reach a reasonable, argued position on the merits of the theories. Another way to do this is simply to ask the students to write a paper on which theory of the consumer is best. The weak student will merely express their understanding of the theories. A better student will be able to compare the theories and identify their weaknesses. A good student will understand what is meant by ‘best’ in the context of a theory and reach a clear conclusion that weighs up the pros and cons of each approach. This assessment method might be called ‘opinion essays’, but essentially, the essays are reasoned arguments towards a particular view. The student’s ability to present a clear structured argument and, where necessary, evidence, will be crucial.

The pattern of the module described so far continues throughout. From Table 3a, we can see that the next topic covered is the firm. The paper aeroplane exercise (Figure 5) above is useful here. Again, as with the biscuits experiment, it can be used simply to test an orthodox precept. It can also be useful as an experimental method for discussion by the students. Further though, as outlined above, the experiment leads into a discussion of production, costs, prices and profits. Orthodox U-shaped average costs can be compared with their heterodox L-shaped counterparts. Marginalist pricing can be compared to mark-up pricing. At higher levels, more detailed treatments of full-cost and normal-cost pricing theories can be undertaken. Again, the students’ understanding of the topic can be assessed by an essay in which they are asked to reach a position and construct an argument for it. It may be the case that as in Salemi (2005), less detail is presented on cost curves; however, their critical analysis means that the concepts are being reinforced. Again, private study allows for practice and revision of key diagrams or formulae.

The treatment of market structure in this module is less detailed than in an orthodox module. Nonetheless, those concepts are encountered. Furthermore, the length of time discussing profits, their origin and their effects, is a stimulating and useful addition. The students exit with a much broader concept of profit and of the firm in its social environment than otherwise would have occurred.

As noted already, the structure of this module is different from a standard introductory framework because, thus far, there has been little if any formal discussion of markets. ‘Markets’ is the final main topic covered. Again, the basic supply and demand analysis can be considered. This could even be applied, in a very basic way, to labour, which is a topic not covered in the module although usually it would be. Now, of course, students are more primed to be critical of markets and to enquire whether the supply and demand formulation is correct. Some students may even question the notion of equilibrium. This is another crucial concept in economics, which is often taken for granted: economists think in terms of equilibrium – why? Students who have already questioned ceteris paribus may be less likely than others to merely accept the importance and validity of equilibrium. Once again, the student is encouraged to interrogate that concept in order to understand and justify its use.

The market exercise (Figure 3) discussed above may be useful at this point in the module. To reiterate, that exercise can be run as a simple game of seeing markets clearly. However, with the additional heterodox material, students can see that the process towards equilibrium is complicated by a number of factors. The questions raised in the game about the role of the State, the institutional features of markets and the distributional (and other) outcomes of markets lead nicely into a comparison between the free market approach and its criticisms, and into a discussion of market failure and the role of government. It is even possible to cover general equilibrium, if only conceptually, at this point, because the students have seen the necessary component parts, such as perfect competition; but they are also more likely to understand the use of a model such as general equilibrium and to be able to reconcile its apparently fantastic assumptions with the need to model, because that issue has already been covered several times.

The heterodox value added can also be shown in a discussion of market failure which, to many heterodox economists, is a misnomer since many of the so-called rigidities in markets are in fact features which make markets function. An example is long-term contracts. Students are able to see an orthodox model in which long-term contracts are a distortion, but also understand from a heterodox perspective that such contracts may be a response to uncertainty. That thought process could then lead into a consideration of risk. If done at level 1, the discussion may be necessarily brief.

An introductory macroeconomics module on at the University of the West of England, Bristol, UK is discussed in Figure 9.

Some other examples of contending perspectives modules are:-

• Harvey (2014) evaluates a module on contending perspectives delivered at Texas Christian University. The module was the model for a specialist textbook, Harvey (2015), which introduces a large range of alternatives, including orthodox economics. Core reading is supplemented by YouTube videos. An interesting feature of the module is that it commences with questions about logic, and science. This creates a base from which students can appraise the various approaches they meet. A key purpose of considering the nature of science is to explain how messy it is, and how biases are an important part of it. This prepares students for biases within readings, and alerts them to their own tutor’s biases. This is clearly aimed at critical, autonomous thinking. The other feature of the module is the use of a large set (around 120) study questions. These range from being quite factual (for example: What is conspicuous consumption?) to more discursive (for instance: In what sense are definitions and statistical categories value-laden?). These questions are used in class but also might be on the exams on the module.
• McDonough (2012) explains how he integrated heterodox criticism into a standard introductory economics module at the National University of Ireland, Galway. This module is a stepping-stone to a contending perspectives module but retains a standard textbook order of topics. The module exposes students to Marxist and institutionalist approaches, as well as to orthodox material. The key here is that the heterodox material is introduced early on and considered throughout.
• A first year core Economics for Management module at the University of Leicester, taught to approximately 200 students every year, offers a different approach to contending perspectives. This module may be the only contact with Economics these Management students have, so there is more scope to give them a flavour of the subject, expose them to different views, teach relevant content, and without any pressure to prepare them for higher level economics. The module starts with a discussion of the nature of economics and its scope (from the breadth of Smith and Marx, say, to the narrower focus of neoclassicals, then ‘colonisation’ and ‘fortress economics’) and a discussion of relationship/distinction between wealth and value. This then leads into a discussion of theories of markets, in which neo-classical views on hpw markets work are contrasted with a Stiglitz-type critique of the neoclassical; and then Austrian views contrast with the Marxian. This material provides a base for subsequent lectures, with markets as thread which holds them together. For example, globalisation is treated as the expansion of markets. Money and finance are discussed in the context of financial markets. Markets relating to climate change, education and intellectual property are also considered.
• Parrique (2015) presents a module delivered at Uppsala University, Sweden, which discusses “issues of political economy in the context of the Anthropocene”. Specifically, it examines globalisation and sustainability. Thus it represents a species of pluralist, problem-based module, many of which consider environmental questions; however, they reflect different principles from those found in orthodox environmental economics modules.

Section 4 of the handbook chapter discusses general points about contending perspectives modules, including some common objections.