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