Alternative Theories of Competition: evidence from Greek manufacturing

The objective of this paper is to evaluate empirically the relevance of the neoclassical, post-Keynesian, and classical theories of competition in the light of the available empirical evidence from Greek large-scale manufacturing industries. The econometric analysis shows that the classical and post-Keynesian models provide a fairly good account of profit differentials, whereas the neoclassical performed the worst of the three. Between the classical and post-Keynesian models, we find that the classical is more consistent with the phenomena that it is designed to explain. Finally, a hybrid model combining variables from the three alternative theories displays the highest explanatory power.