Post-Keynesian Economics: New Foundations by Marc Lavoie
Chapter 3: Theory of the firm

ABSTRACT

This article represents a systematic presentation of the post-Keynesian alternative to mainstream economic theory. It places observation of reality at the centre of the investigation and derives — through an in-depth examination of post-Keynesian literature — an analytical model capable of interpreting the behaviour of firms in a capitalistic market economy. The chapter on which this article focuses is in a book covering the core elements of this heterodox model, which creates a coherent framework for investigating and interpreting the workings of an economic system that approximates reality.

KEYWORDS:

• Theory of the firm
• post-Keynesian economics
• competition
• monopoly power

JEL CODES:

• D20
• B50
• B51
• E12

Acknowledgements

I would like to use this opportunity to acknowledge and thank the reviewers who reviewed this article and aided in its publication.

Disclosure Statement

No potential conflict of interest was reported by the author.