Comment on "On the proper behavior of atoms" by Paul Anglin

TL;DR

This paper addresses and corrects misunderstandings in a critique of the authors' analysis of neoclassical firm theory, providing clarifications and a new argument to replace a flawed one.

Contribution

The authors clarify their original assumptions, correct misconceptions, and introduce a new argument to improve their analysis of neoclassical firm theory.

Findings

Corrected misunderstandings about assumptions

Identified and acknowledged a valid criticism

Presented a new, improved argument

Abstract

Paul Anglin criticised our analysis of the neoclassical theory of the firm, but makes a number of incorrect assertions about our assumptions. We correct these misunderstandings, but acknowledge that one criticism he makes is correct. We correct this flaw with a new argument that supersedes the flawed strategic reaction argument we presented in our previous paper.