Classical vs. Neoclassical Conceptions of Competition

Lefteris Tsoulfidis (lnt@uom.edu.gr)

MPRA Paper from University Library of Munich, Germany

Abstract: This article discusses two major conceptions of competition, the classical and the neoclassical. In the classical conception, competition is viewed as a dynamic rivalrous process of firms struggling with each other over the expansion of their market shares at the expense of their competitors. This dynamic view of competition characterizes mainly the works of Smith, Ricardo, J.S. Mill and Marx; a similar view can be also found in the writings of Austrian economists and the business literature. By contrast, the neoclassical conception of competition is derived from the requirements of a theory geared towards static equilibrium and not from any historical observation of the way in which firms actually organize and compete with each other.

Keywords: Classical Competition; Regulating Capital; Incremental Rate of Return; Rate of Profit; Perfect Competition (search for similar items in EconPapers)
JEL-codes: B12 B13 B14 B21 B24 B25 B51 B53 L11 (search for similar items in EconPapers)
Date: 2011-05, Revised 2012-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Classical vs. Neoclassical Conceptions of Competition (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43999

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