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Toward an Understanding of Keen and Standish's Theory of the Firm: A Comment

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  • David Rosnick

Abstract

In a series of papers, Steve Keen and Russell Standish criticize the textbook approaches to firm behavior under conditions of perfect and imperfect competition. These papers misstate the assumptions underlying the models and err in mathematics. The critiques do not follow through on their theoretical arguments, and do not explain what drives the results of their computer simulations. Consequently, their contributions confuse rather than clarify understanding of firm behavior.

Suggested Citation

  • David Rosnick, 2015. "Toward an Understanding of Keen and Standish's Theory of the Firm: A Comment," World Economic Review, World Economics Association, vol. 2015(5), pages 107-107, July.
    • Handle: RePEc:wea:worler:v:2015:y:2015:i:5:p:107
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    File URL: http://wer.worldeconomicsassociation.org/files/WEA-WER-5-Rosnick.pdf
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    References listed on IDEAS

    as
    1. Keen, Steve & Standish, Russell, 2006. "Profit maximization, industry structure, and competition: A critique of neoclassical theory," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 370(1), pages 81-85.
    2. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    3. Anglin, Paul, 2008. "On the proper behavior of atoms: A comment on a critique," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(1), pages 277-280.
    4. Russell K. Standish & Steve Keen, 2004. "Emergent Effective Collusion in an Economy of Perfectly Rational Competitors," Papers nlin/0411006, arXiv.org.
    5. G. J. Stigler, 1972. "Perfect Competition, Historically Contemplated," Palgrave Macmillan Books, in: Charles K. Rowley (ed.), Readings in Industrial Economics, chapter 7, pages 105-130, Palgrave Macmillan.
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    Cited by:

    1. David Rosnick, 2015. "Technical Appendix: A Better Response to Keen-Standish “hill climbers”," World Economic Review, World Economics Association, vol. 2015(5), pages 124-124, July.

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