A Market Process Theory of the Firm

This book offers a fresh perspective on firm theory, challenging traditional neoclassical concepts and providing insights into business history and economic evolution.

In A Market Process Theory of the Firm, the author presents a compelling argument against the traditional neoclassical framework, suggesting that a more accurate theory of the firm can be developed without its flawed concepts. This book delves into the complexities of business history, revealing how the evolution of firms is influenced by various unpredictable factors. The author posits that understanding businesses requires acknowledging their inherent uncertainties, which play a crucial role in economic development.

The text offers a detailed critique of neoclassical economics, particularly focusing on the limitations of the MR = MC rule. By dissecting these established assumptions, the author guides readers through a transition towards a more empirically grounded theory. This approach is enriched with real-world examples and modeling logic, providing a fresh perspective on how firms operate and grow. The discussion extends to the classification of firm expansion and the constraints that shape their size, emphasizing the need for a more nuanced understanding of pricing theory.

Moreover, A Market Process Theory of the Firm highlights the significance of firms within dynamic industries, illustrating how economic progress is often a product of experimentation, errors, and failures. This book serves as a vital resource for scholars and researchers interested in microeconomics, pricing theory, industrial organization, and the historical development of economic thought, making it an essential addition to the field.