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; furthermore, (2) the efficient theories in the exchange paradigm family cannot claim superiority over one another since a supracriterion for their contest is lacking; and (3) the CATC—even when considered efficient—cannot challenge the NTPC, let alone replace it. In addition to meeting a host of conditions, a successful contender must come from a new paradigm, which the CATC does not. Therefore, the replacement assertion remains unjustified.
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