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A Behavioral Theory Of The Firm
The behavioral theory of the firm first appeared in the 1963 book ''A Behavioral Theory of the Firm'' by Richard M. Cyert and James G. March. The work on the behavioral theory started in 1952 when March, a political scientist, joined Carnegie Mellon University, where Cyert was an economist. Before this model was formed, the existing theory of the firm had two main assumptions: profit maximization and perfect knowledge. Cyert and March questioned these two critical assumptions. Background ''A behavioral model of rational choice'' by Herbert A. Simon paved the way for the behavioral model. Neo-classical economists assumed that firms enjoyed perfect information. In addition the firm maximized profits and did not suffer from internal resource allocation problems. Advocates of the behavioral approach also challenged the omission of the element of uncertainty from the conventional theory. The behavioral model, like the managerial models of Oliver E. Williamson and Robin Marris, cons ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Richard Cyert
Richard Michael Cyert (July 22, 1921 – October 7, 1998) was an American economist, statistician and organizational theorist, who served as the sixth President of Carnegie Mellon University in Pittsburgh, Pennsylvania, United States. He is known for his seminal 1959 work "''A behavioral theory of the firm''," co-authored with James G. March. Early life He was born in Winona, Minnesota and grew up in Minneapolis. He received a B.S. from the University of Minnesota in 1943, then joined the U.S. Navy. On the G.I. Bill he earned his Ph.D. in economics from Columbia University following World War II. At Columbia, however, he became a specialist in statistics as well. He taught briefly at City College of New York, then took a position in Pittsburgh at Carnegie Institute of Technology in 1948 to teach statistics in accounting and auditing. Carnegie Mellon years Cyert taught economics, statistics, and industrial administration for the next 14 years, then was named dean of the Graduate S ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Entrepreneur
Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones. An entrepreneur is an individual who creates and/or invests in one or more businesses, bearing most of the risks and enjoying most of the rewards.The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures. More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often similar to a small business, or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit." The people who create these businesses are often referred to as entrepreneurs. While def ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Economics
Business economics is a field in applied economics which uses economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital and product markets.Moschandreas, Maria (2000). ''Business Economics'', 2nd Edition, Thompson Learning,Descriptionand chapter-previelinks A professional focus of the journal '' Business Economics'' has been expressed as providing "practical information for people who apply economics in their jobs." Business economics is an integral part of traditional economics and is an extension of economic concepts to the real business situations. It is an applied science in the sense of a tool of managerial decision-making and forward planning by management. In other words, business economics is concerned with the application of economic theory to business management. Business economics is based on microeconomics in two categories: pos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Management Publications
Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources. "Run the business" and "Change the business" are two concepts that are used in management to differentiate between the continued delivery of goods or services and adapting of goods or services to meet the changing needs of customers - see trend. The term "management" may also refer to those people who manage an organization—managers. Some people study management at colleges or universities; major degrees in management includes the Bachelor of Commerce (B.Com.), Bachelor of Business Admi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Carnegie School
The Carnegie School is a school of economic thought originally formed at the Graduate School of Industrial Administration (GSIA), the current Tepper School of Business, of Carnegie Institute of Technology, the current Carnegie Mellon University, especially during the 1950s to 1970s. Faculty at the Graduate School of Industrial Administration are known for formulating two "seemingly incompatible" concepts: bounded rationality and rational expectations. The former was developed by Herbert A. Simon, along with James March, Richard Cyert and Oliver Williamson. The latter was developed by John F. Muth and later popularized by Robert Lucas Jr., Thomas Sargent, Leonard Rapping, and others. Depending on author and context, the term "Carnegie School" can refer to either both branches or only the bounded rationality branch, sometimes with the qualifier "Carnegie School of organization theory". The commonality between both branches is the use of dynamic optimization and forecasting tec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Theory Of The Firm
The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour, structure, and relationship to the market. Firms are key drivers in economics, providing goods and services in return for monetary payments and rewards. Organisational structure, incentives, employee productivity, and information all influence the successful operation of a firm in the economy and within itself. As such major economic theories such as Transaction cost theory, Managerial economics and Behavioural theory of the firm will allow for an in-depth analysis on various firm and management types. Overview In simplified terms, the theory of the firm aims to answer these questions: # Existence. Why do firms emerge? Why are not all transactions in the economy mediated over the market? # Boundaries. Why is the boundary between firms and the market located exactly there in relation to size and output vari ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bounded Rationality
Bounded rationality is the idea that rationality is limited when individuals make decisions, and under these limitations, rational individuals will select a decision that is satisfactory rather than optimal. Limitations include the difficulty of the problem requiring a decision, the cognitive capability of the mind, and the time available to make the decision. Decision-makers, in this view, act as satisficers, seeking a satisfactory solution, with everything that they have at the moment rather than an optimal solution. Therefore, humans do not undertake a full cost-benefit analysis to determine the optimal decision, but rather, choose an option that fulfils their adequacy criteria. An example of this being within organisations when they must adhere to the operating conditions of their company, this has the opportunity to result in bounded rationality as the organisation is not able to choose the optimal option. Some models of human behavior in the social sciences assume that hu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Satisficing
Satisficing is a decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met. The term ''satisficing'', a portmanteau of ''satisfy'' and ''suffice'', was introduced by Herbert A. Simon in 1956, although the concept was first posited in his 1947 book '' Administrative Behavior''. Simon used satisficing to explain the behavior of decision makers under circumstances in which an optimal solution cannot be determined. He maintained that many natural problems are characterized by computational intractability or a lack of information, both of which preclude the use of mathematical optimization procedures. He observed in his Nobel Prize in Economics speech that "decision makers can satisfice either by finding optimum solutions for a simplified world, or by finding satisfactory solutions for a more realistic world. Neither approach, in general, dominates the other, and both have continued to co-exist in th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Robin Marris
Robin may refer to: Animals * Australasian robins, red-breasted songbirds of the family Petroicidae * Many members of the subfamily Saxicolinae (Old World chats), including: **European robin (''Erithacus rubecula'') ** Bush-robin **Forest robin **Magpie-robin ** Scrub-robin **Robin-chat, two bird genera ** Bagobo robin **White-starred robin **White-throated robin ** Blue-fronted robin **Larvivora (6 species) **Myiomela (3 species) * Some red-breasted New-World true thrushes (''Turdus'') of the family Turdidae, including: ** American robin (''T. migratorius'') (so named by 1703) ** Rufous-backed thrush (''T. rufopalliatus'') ** Rufous-collared thrush (''T. rufitorques'') ** Formerly other American thrushes, such as the clay-colored thrush (''T. grayi'') * Pekin robin or Japanese (hill) robin, archaic names for the red-billed leiothrix (''Leiothrix lutea''), red-breasted songbirds * Sea robin, a fish with small "legs" (actually spines) Arts, entertainment, and media Fictio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
James March
James Gardner March (January 15, 1928 – September 27, 2018) was an American political scientist, sociologist, and economist. A professor at Stanford University in the Stanford Graduate School of Business and Stanford Graduate School of Education, he is best known for his research on organizations, his (jointly with Richard Cyert) seminal work on A Behavioral Theory of the Firm, and the organizational decision making model known as the Garbage Can Model. Early life and education Born in Cleveland, Ohio in 1928, March received his B.A. from the University of Wisconsin at Madison in 1945 in political science. He received his M.A. in 1950 and Ph.D. in 1953 from Yale University, both in political science. James March was awarded honorary doctorate from numerous universities: * Copenhagen Business School (then: Copenhagen School of Economics), 1978 * Hanken School of Economics (Helsinki), 1979 * University of Wisconsin-Milwaukee, 1980 * University of Bergen, 1980; ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Oliver E
Oliver may refer to: Arts, entertainment and literature Books * ''Oliver the Western Engine'', volume 24 in ''The Railway Series'' by Rev. W. Awdry * '' Oliver Twist'', a novel by Charles Dickens Fictional characters * Ariadne Oliver, in the novels of Agatha Christie * Oliver (Disney character) * Oliver Fish, a gay police officer on the American soap opera ''One Life to Live'' * Oliver Hampton, in the American television series ''How to Get Away with Murder'' * Oliver Jones (''The Bold and the Beautiful''), on the American soap opera ''The Bold and the Beautiful'' * Oliver Lightload, in the movie ''Cars'' * Oliver Oken, from ''Hannah Montana'' * Oliver (paladin), a paladin featured in the Matter of France * Oliver Queen, DC Comic book hero also known as the Green Arrow * Oliver (Thomas and Friends character), a locomotive in the Thomas and Friends franchise * Oliver Trask, a controversial minor character from the first season of ''The O.C.'' * Oliver Twist (ch ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Neo-classical Economics
Neoclassical economics is an approach to economics in which the production, consumption and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a good or service is determined through a hypothetical maximization of utility by income-constrained individuals and of profits by firms facing production costs and employing available information and factors of production. This approach has often been justified by appealing to rational choice theory, a theory that has come under considerable question in recent years. Neoclassical economics historically dominated macroeconomics and, together with Keynesian economics, formed the neoclassical synthesis which dominated mainstream economics as "neo-Keynesian economics" from the 1950s to the 1970s.Clark, B. (1998). ''Principles of political economy: A comparative approach''. Westport, Connecticut: Praeger. Nadeau, R. L. (2003). ''The Wealth of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
