ABSTRACT
This chapter illustrates the debate between the academics who believe in the benevolence of the free market against academics who believe in the market power exercised by a big company. It discusses the origins of the issue, marked from 1890, the date of the Sherman Law, until 1956, the date when what could be considered the first economic book full of economic tools, Barriers to Competition emerged. The chapter reviews theory of the firm during the 1940s, both in England and in United States. It presents a revision of the behaviorism school and its promoters, Herbert Simon, Richard Cyert and James March. The inclusion of behaviour premises in the theory of the firm as well in Industrial Organization analysis could consider Joe Bain's as its main contributor and followed by the Structure-Conduct-Performance paradigm, in the field of economics theory. The chapter also demonstrates the non-workable competition in the main American markets.
