 What seems to be Krugman's biggest issue with Arthur?
Krugman's Life of Brian Where it all started: Paul Krugman's "The Legend of Arthur." I am reluctant to dignify his hatchet job with a lengthy reply, but some of his claims are so defamatory that they should be addressed, if only for the record. 1) Krugman claims that my opening sentence--"In a way, Bill Gates's current troubles with the Justice Department grew out of an economics seminar that took place thirteen years ago, at Harvard's John F. Kennedy School of Government"--is "pure fiction." Perhaps so, but in that case somebody should tell this to Joel Klein, the assistant attorney general in charge of the antitrust division. When I interviewed Klein for my piece about the Microsoft case, he singled out Brian Arthur as the economist who has most influenced his thinking about the way in which high-technology markets operate. It was Klein's words, not those of Arthur, that prompted me to use Arthur in the lead of the story. 2) Krugman wrote: "Cassidy's article tells the story of how Stanford Professor Brian Arthur came up with the idea of increasing returns." I wrote no such thing, and Arthur has never, to my knowledge, claimed any such thing. The notion of increasing returns has been around since Adam Smith, and it was written about at length by Alfred Marshall in 1890. What I did say in my article was that increasing returns was largely ignored by mainstream economists for much of the postwar era, a claim that simply isn't controversial. (As Krugman notes, one reason for this was technical, not ideological. Allowing for the possibility of increasing returns tends to rob economic models of two properties that economists cherish: simplicity and determinism. As long ago as 1939, Sir John Hicks, one of the founders of modern economics, noted that increasing returns, if tolerated, could lead to the "wreckage" of a large part of economic theory.)
 Arthur received too much credit for increasing returns.
 Arthur allows too many people to misquote him.  Arthur received too much credit for increasing returns.  Arthur provided inaccurate information.  Arthur didn't do enough research on increasing returns.