Homer clearly expressed the economic problem of choosing the best option among several alternatives given a certain set of restrictions. In the Odyssey he specifically wrote about the minimum cost choice. This kind of problem, as is well known, is at the heart of the neoclassical economics. We can therefore consider Homer a forerunner of this school of thought. This hypothesis contrasts with those of Trever (1916), Schumpeter (1954) and Schefold (1997)

Posada, Carlos Esteban

English

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MPRAMunich Personal RePEc ArchiveHomer: A Forerunner of NeoclassicalEconomicsCarlos Esteban PosadaUniversidad de Los AndesMay 2012Online at http://mpra.ub.uni-muenchen.de/47487/MPRA Paper No. 47487, posted 9. June 2013 13:43 UTC Homer: A Forerunner of Neoclassical Economics Carlos Esteban POSADAa); i a) Universidad de los Andes   ____________________________________________________________________ Abstract Homer clearly expressed the economic problem of choosing the best option among several alternatives given a certain set of restrictions. In the Odyssey he specifically wrote about the minimum cost choice. This kind of problem, as is well known, is at the heart of the neoclassical economics. We can therefore consider Homer a forerunner of this school of thought. This hypothesis contrasts with those of Trever (1916), Schumpeter (1954) and Schefold (1997).  Journal of Economic Literature classification: B13; B31 Keywords:  Odyssey, minimum cost choice, neoclassical economics _____________________________________________________________________ 2 I. Introduction Homer was the first Greek poet (and first intellectual) to clearly express the economic problem of choosing the best option between several alternatives given a certain set of restrictions. Specifically in the Odyssey, Homer discussed the problem of minimum cost choice and understood that human beings must often weigh different options given certain constraints.  Because the problem of minimum cost choice is at the heart of neoclassical economicsii, we can consider Homer a forerunner of this school of thoughtiii  and the rational choice theoryiv.   In what follows, I briefly summarize the verses in the Odyssey (1996) upon which I make this claim. I then critique the argument advanced by Trever (1916), and subsequently defended by Schumpeter (1954) and Schefold (1997), that Homer has nothing to add to our understanding of economic reasoning or to our knowledge of the history of economic analysis.  To date, I am unaware that any other author has revealed how Homer grapples with analytic problems taken up by neoclassical economics. II. The Proof     Evidence in favor of my argument is found in the dialogue between Odysseus and Circe in Book Twelve of the Odyssey.  In this part of the epic, Circe tells Odysseus that he must choose between three different routes of navigation upon leaving her island (and past the island of the Sirens), none of which is without costv. The first route, which is the most dangerous, entails sailing through the Clashing Rocks.  No one, except for Jason and his crew (thanks to Goddess Hera’s love for Jason), has survived going this way.  The other two options involve passing through a strait inhabited by the two eternal monsters, Scylla and Charybdis.  By sailing through the end of the strait where Scylla lives, Odysseus risks being attacked and losing six members of his crew. Yet by sailing through the other end, Charybdis could destroy his boat and kill his entire crew.   3 According to Circe, Odysseus’s best option is to attempt to sail by Scyllavi.  In our terms, this is the minimum cost optionvii.  In fact, this is the choice that Odysseus makes. We see therefore that Homer was preoccupied with the problem of choosing the best option among several alternatives given a certain set of restrictions. III. The Conventional Wisdom My argument contradicts that made by Albert Trever (1916).  Trever argued that any material of interest in Homer applies not to any specific mode of economic reasoning (e.g. minimum cost), but rather to a history of economic conditions (1916, Note 2, P. 14).  This is not unlike the position taken by Joseph A. Schumpeter (1954, pp. 52-54):  i.e. that there is nothing of interest regarding modes of economic analysis before Plato.  More specifically, Schumpeter asserts that the works of the Greek poets and historians prior to Plato are relevant only when examined from the point of view of the history of facts and economic opinionsviii.  More recently, Bertram Schefold (1997, pp. 111-128) has examined the works of Homer to find the roots of Greek economic thought. According to Schefold, in Homer the reader may find passages interesting only from the point of view of the history of economic facts or opinions, or from the point of view of moral precepts on issues that we now regard as economic ones. In my view, therefore, Schefold does not dispute the position taken by Trever and Schumpeterix.  Without denying the important contributions these authors have made for our understanding of ancient Greek economic thought, I do believe that Homer expressed in a clear way a problem that belongs to the core of neoclassical economics. REFERENCES Backhouse, Roger E. 2002. The Ordinary Business of Life: A History of Economics             from the Ancient World to the Twenty-First Century. Princeton and Oxford:   4 Princeton University Press. Blaug, Mark. 1968. Economic Theory in Retrospect (Revised Edition). Homewood:         Richard D. Irwin, Inc.  Ekelund Jr., Robert B., and Hébert, Robert F. 1997.  A History of Economic Theory  and Method (Fourth Edition). New York: McGraw-Hill. Homer. The Odyssey. Translated by Robert Fagles. New York: Penguin Classics Deluxe Edition. 1996. Knox, Bernard. “Introduction”. The Odyssey. Translated by Robert Fagles. New York: Penguin Classics Deluxe Edition. 1996, pp. 3-64. Lovett, Frank. 2006. “Rational Choice Theory and Explanation.”,  Rationality and Society  18(2): 237 – 272. Schefold, Bertram. 1997. “Reflections of Ancient Economic Thought in Greek Poetry”. In B. B. Price, ed., Ancient Economic Thought. Volume 1, London: Routledge, pp. 99-145. Schumpeter, Joseph A. 1954. History of Economic Analysis, New York: Oxford University Press (First issued as an Oxford University Press paperback in 1986). Trever, Albert A. 1916. A History of Greek Economic Thought. Chicago: The University of Chicago Press. Note 2, p. 14.  5 Endnotes                                                   i I wish to thank Maria M. Posada, Randall Hicks, Ximena Hurtado and Luis E. Arango for their constructive suggestions. E-mail address: carlos.posada.p@gmail.com. ii I use the definition of Mark Blaug (1968) of neoclassical economics, namely, post-classical economics excluding the Marxist and Keynesian theories. On the choose of the least cost option (taking into account a set of constraints) as an issue belonging to the heart of neoclassical economics, see  Blaug: “After 1870…For the first time, economics truly became the science that studies the relationship between given ends and given scarce means that have alternative uses.” (Blaug, 1968, pp. 299-300). iiiIn this paper I’m using the hypothesis more accepted today: Homer did exist and wrote the Odyssey in some date between 725 and 675 B. C. (“The most likely date for the composition of the Iliad  is the fifty years running from 725 to 675 B. C.; for the Odissey, somewhat later in the period”:  Knox, 1996,  p. 19). iv On this theory, its general meaning, scope and limitations, see Lovett (2006). v Homer. The Odyssey, pp. 273 – 275 (see list of references). vi Circe tells Odysseus:  “… hug Scylla´s crag –sail on past her- top speed!  Better by   far to lose six men and keep your ship than lose your entire crew” (op. cit., p. 274). vii According to the neoclassical economics this problem is an economic one, and the consequences related to the three alternatives are real costs. viii Schumpeter (1954, Note 1, p. 54). ix Ekelund and Hébert (1997, pp. 11-12), and Backhouse (2002, pp. 11-12) share the Schefold’s hypothesis. 

Homer: A Forerunner of Neoclassical Economics

Munich Personal RePEc Archive

MPRA
Munich Personal RePEc Archive
Homer: A Forerunner of Neoclassical
Economics
Carlos Esteban Posada
Universidad de Los Andes
May 2012
Online at http://mpra.ub.uni-muenchen.de/47487/
MPRA Paper No. 47487, posted 9. June 2013 13:43 UTC
 Homer: A Forerunner of Neoclassical Economics 
Carlos Esteban POSADA
a);
 
i
 
a) Universidad de los Andes  
 
____________________________________________________________________ 
Abstract 
Homer clearly expressed the economic problem of choosing the best option among 
several alternatives given a certain set of restrictions. In the Odyssey he specifically 
wrote about the minimum cost choice. This kind of problem, as is well known, is at the 
heart of the neoclassical economics. We can therefore consider Homer a forerunner of 
this school of thought. This hypothesis contrasts with those of Trever (1916), 
Schumpeter (1954) and Schefold (1997). 
 
Journal of Economic Literature classification: B13; B31 
Keywords:  Odyssey, minimum cost choice, neoclassical economics 
_____________________________________________________________________
 2 
I. Introduction 
Homer was the first Greek poet (and first intellectual) to clearly express the economic 
problem of choosing the best option between several alternatives given a certain set of 
restrictions. Specifically in the Odyssey, Homer discussed the problem of minimum cost 
choice and understood that human beings must often weigh different options given 
certain constraints.  Because the problem of minimum cost choice is at the heart of 
neoclassical economics
ii
, we can consider Homer a forerunner of this school of 
thought
iii
  and the rational choice theory
iv
.  
 In what follows, I briefly summarize the verses in the Odyssey (1996) upon 
which I make this claim. I then critique the argument advanced by Trever (1916), and 
subsequently defended by Schumpeter (1954) and Schefold (1997), that Homer has 
nothing to add to our understanding of economic reasoning or to our knowledge of the 
history of economic analysis.  To date, I am unaware that any other author has revealed 
how Homer grapples with analytic problems taken up by neoclassical economics. 
II. The Proof 
    Evidence in favor of my argument is found in the dialogue between Odysseus and 
Circe in Book Twelve of the Odyssey.  In this part of the epic, Circe tells Odysseus that 
he must choose between three different routes of navigation upon leaving her island 
(and past the island of the Sirens), none of which is without cost
v
. The first route, which 
is the most dangerous, entails sailing through the Clashing Rocks.  No one, except for 
Jason and his crew (thanks to Goddess Hera’s love for Jason), has survived going this 
way.  The other two options involve passing through a strait inhabited by the two 
eternal monsters, Scylla and Charybdis.  By sailing through the end of the strait where 
Scylla lives, Odysseus risks being attacked and losing six members of his crew. Yet by 
sailing through the other end, Charybdis could destroy his boat and kill his entire crew.  
 3 
According to Circe, Odysseus’s best option is to attempt to sail by Scyllavi.  In our 
terms, this is the minimum cost option
vii
.  In fact, this is the choice that Odysseus 
makes. We see therefore that Homer was preoccupied with the problem of choosing the 
best option among several alternatives given a certain set of restrictions. 
III. The Conventional Wisdom 
My argument contradicts that made by Albert Trever (1916).  Trever argued that any 
material of interest in Homer applies not to any specific mode of economic reasoning 
(e.g. minimum cost), but rather to a history of economic conditions (1916, Note 2, P. 
14).  This is not unlike the position taken by Joseph A. Schumpeter (1954, pp. 52-54):  
i.e. that there is nothing of interest regarding modes of economic analysis before Plato.  
More specifically, Schumpeter asserts that the works of the Greek poets and historians 
prior to Plato are relevant only when examined from the point of view of the history of 
facts and economic opinions
viii
. 
 More recently, Bertram Schefold (1997, pp. 111-128) has examined the works of 
Homer to find the roots of Greek economic thought. According to Schefold, in Homer 
the reader may find passages interesting only from the point of view of the history of 
economic facts or opinions, or from the point of view of moral precepts on issues that 
we now regard as economic ones. In my view, therefore, Schefold does not dispute the 
position taken by Trever and Schumpeter
ix
. 
 Without denying the important contributions these authors have made for our 
understanding of ancient Greek economic thought, I do believe that Homer expressed in 
a clear way a problem that belongs to the core of neoclassical economics. 
REFERENCES 
Backhouse, Roger E. 2002. The Ordinary Business of Life: A History of Economics  
           from the Ancient World to the Twenty-First Century. Princeton and Oxford:  
 4 
Princeton University Press. 
Blaug, Mark. 1968. Economic Theory in Retrospect (Revised Edition). Homewood:         
Richard D. Irwin, Inc.  
Ekelund Jr., Robert B., and Hébert, Robert F. 1997.  A History of Economic Theory 
 and Method (Fourth Edition). New York: McGraw-Hill. 
Homer. The Odyssey. Translated by Robert Fagles. New York: Penguin Classics Deluxe 
Edition. 1996. 
Knox, Bernard. “Introduction”. The Odyssey. Translated by Robert Fagles. New York: 
Penguin Classics Deluxe Edition. 1996, pp. 3-64. 
Lovett, Frank. 2006. “Rational Choice Theory and Explanation.”,  Rationality and 
Society  18(2): 237 – 272. 
Schefold, Bertram. 1997. “Reflections of Ancient Economic Thought in Greek Poetry”. 
In B. B. Price, ed., Ancient Economic Thought. Volume 1, London: Routledge, 
pp. 99-145. 
Schumpeter, Joseph A. 1954. History of Economic Analysis, New York: Oxford 
University Press (First issued as an Oxford University Press paperback in 1986). 
Trever, Albert A. 1916. A History of Greek Economic Thought. Chicago: The University 
of Chicago Press. Note 2, p. 14. 
 5 
Endnotes 
 
                                                 
i
 I wish to thank Maria M. Posada, Randall Hicks, Ximena Hurtado and Luis E. Arango 
for their constructive suggestions. E-mail address: carlos.posada.p@gmail.com. 
ii
 I use the definition of Mark Blaug (1968) of neoclassical economics, namely, post-
classical economics excluding the Marxist and Keynesian theories. On the choose of the 
least cost option (taking into account a set of constraints) as an issue belonging to the 
heart of neoclassical economics, see  Blaug: “After 1870…For the first time, economics 
truly became the science that studies the relationship between given ends and given 
scarce means that have alternative uses.” (Blaug, 1968, pp. 299-300). 
iiiIn this paper I’m using the hypothesis more accepted today: Homer did exist and wrote 
the Odyssey in some date between 725 and 675 B. C. (“The most likely date for the 
composition of the Iliad  is the fifty years running from 725 to 675 B. C.; for the 
Odissey, somewhat later in the period”:  Knox, 1996,  p. 19). 
iv
 On this theory, its general meaning, scope and limitations, see Lovett (2006). 
v
 Homer. The Odyssey, pp. 273 – 275 (see list of references). 
vi
 Circe tells Odysseus:  “… hug Scylla´s crag –sail on past her- top speed!  Better by   
far to lose six men and keep your ship than lose your entire crew” (op. cit., p. 274). 
vii
 According to the neoclassical economics this problem is an economic one, and the 
consequences related to the three alternatives are real costs. 
viii
 Schumpeter (1954, Note 1, p. 54). 
ix
 Ekelund and Hébert (1997, pp. 11-12), and Backhouse (2002, pp. 11-12) share the 
Schefold’s hypothesis. 


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