The original concept of the negotiated economy from the late 1970s pro
vided some heuristic insights into significant developments of politic
al, economic, and administrative processes. The later development of t
he concept has not brought the theory of the negotiated economy any fu
rther. This is a reply to an article published in SPS (Andersen et al.
1996) which responded to criticisms brought by me in an earlier artic
le (1994:4). The defence of the theory of the negotiated economy is no
t consistent. The theory is both non-positive and positive, and normal
ly accepted criteria for empirical confrontation are not adhered to.