Volume 6, No. 1 (Spring 2003)
One is not intellectually free to use the neoclassical theory of the firm at one time to explain economic action, and to discard it at another. If the theory of the firm does not apply in all explanations of firm behavior, then it cannot apply at all. If economists cannot explain the theory of predatory pricing consistently with their models a priori, and if they are unable to conclusively observe a posteriori that successful predatory pricing has, indeed, occurred, then perhaps it is time to cast this particular theory onto the ash heap of intellectual history.
