Does the Comparative Advantage Theory of Competition Really Replace the Neoclassical Theory of Perfect Competition?

The Comparative Advantage Theory of Competition (CATC) is proposed by Hunt and Morgan (1995) to replace the Neoclassical Theory of Perfect Competition (NTPC). The new theory claims to offer a better explanation for key macro and micro phenomena. The authors’ purpose in this article is to evaluate the CATC's potential as a replacement for the neoclassical theory. They argue that (1) both the NTPC and CATC are offshoots of the exchange paradigm;...