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On the proper behavior of atoms: A comment on a critique

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  • Anglin, Paul

Abstract

A recent article [S. Keen, R. Standish, Profit maximization, industry structure, and competition: a critique of neoclassical theory, Physica A 370 (2006) 81–85] suggests that the Cournot model, which is widely used in Economics, is inappropriate and the article proposes an alternative. I argue that the supporting arguments compute derivatives incorrectly which, amongst other things, have the effect of confusing the relationship between an individual actor in a market and the total mass of firms. I also indicate that the proposed alternative was considered about 20 years ago and found to be unsatisfactory. Thus, it should not be surprising when the authors fail to use their own proposal in the second half of the paper.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:phsmap:v:387:y:2008:i:1:p:277-280
    DOI: 10.1016/j.physa.2007.08.053
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    References listed on IDEAS

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    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. Dixon, Huw D. & Somma, Ernesto, 2003. "The evolution of consistent conjectures," Journal of Economic Behavior & Organization, Elsevier, vol. 51(4), pages 523-536, August.
    3. Morton I. Kamien & Nancy L. Schwartz, 1983. "Conjectural Variations," Canadian Journal of Economics, Canadian Economics Association, vol. 16(2), pages 191-211, May.
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    Cited by:

    1. Russell K. Standish & Stephen L. Keen, 2015. "Rationality in the Theory of the Firm," World Economic Review, World Economics Association, vol. 2015(5), pages 101-101, July.
    2. 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.

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