IS PERFECT COMPETITION AN EMPIRICALLY INADEQUATE MODEL?

This paper examines the empirical content of the neoclassical theory of the firm. The main models (perfect competition, monopolistic competition, pure monopoly) are specified in terms of observable anomalies. These models are then tested against data and against each other. The findings pave the way for an appraisal of the empirical status of the perfectly competitive model, relative to the data and relative to the other neoclassical models. [ABSTRACT FROM AUTHOR]