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>'---.V;:,-:V-THE LIBRARY
OF
THE UNIVERSITY
OF CALIFORNIA
LOS ANGELESPRINCIPLES AND METHODS
OF
INDUSTRIAL PEACEPRINCIPLES & METHODS
OF
INDUSTBIAL PEACE
BY
A. C. PIGOU, M.A., F.S.-S.
OFFELLOW THE ROYAL ECONOMIC SOCIETY FELLOW OF KING':
;
COLLEGE, CAMBRIDGE
; GIRDLER'S UNIVERSITY LECTURER
IN ECONOMICS, CAMBRIDGE
ILontion
MACMILLAN AND CO., Limited
NEW YORK: THE MACMILLAN COMPANY
1905
All rights referredHD
Sill
PREFACE
The scope and purpose of this book is sufficiently
explained in the introductory chapter to Part I. The
work upon which it is based was begun in the spring
of 1902. The preliminary results were used in an
essay which obtained the Adam Smith prize at
Cambridge in and also in a course of lectures1903,
delivered by me as Jevons Memorial Lecturer at
University College, London. Since that time I have
carried the analytical work somewhat further, have
endeavoured to take account of a number of recent
writings bearing upon the subject, and have recast the
whole of my original draft.
The investigation has proved difficult, and the
conclusions now offered are tentative and provisional.
On the one hand, for the successful application of
general economic principles to the problems of real
life, there is needed an experience and a knowledge of
men, with which an academic student can scarcely be
equipped. In all probability, therefore, there will
1391641vi INDUSTKIAL PEACE
appear defects of detail, and more errors ofserious
proportion, which the practical man will toleranceneed
to forgive. On the other hand, the theoreticalmore
side of the subject has not hitherto been widely
discussed, and though, in derivedregard to it, I have
great help from Professor Marshall's Principles of
Economics and Edgeworth's Mathematical
Psychics, some of the work to be done was of a kind
usually called original. In such work there are
invariably gaps and errors.
The more complicated parts of the main problem
have required for their solution the employment of
"a technical apparatus. As, however, Industrial
"Peace is a subject, interest in which is not confined to
the narrow circle of economists, I have endeavoured
in the text to suppress this apparatus and to
translate semi-mathematical reasoning into language
intelligible to the ordinary reader. In Appendices A
and B some parts of the logical machinery employed
have been preserved ; but they are not necessary to
the understanding of the general argument. The
scope and drift of this will, it is hoped, be made
clear by the analytical table of contents, in which
it is concisely summarised.
The books, official publications, and magazine
articles to which I am conscious of obligations, are