Behavioral Theory of the Firm

Behavioural Theory of the Firm has become a classic work in organizational theory, and is one of the most significant contributions to improving the theory of the firm. This second edition includes new material which puts the original text in a contemporary context.

List of Tables and Figures vii

Acknowledgments ix

Preface to the Second edition xi

1 Introduction 1

2 Antecedents of the Behavioral theory of the firm 4

3 Organizational Goals 30

4 Organizational Expectations 52

5 Organizational Choice 99

6 A Specific Price and Output Model 136

7 A Summary of Basic concepts in the Behavioral Theory of the Firm 161

8 Some Implications 177

9 An Epilogue 214

Index 247

Author Index 250

Richard Cyert is President of the Carnegie Bosch Institute at the Carnegie Mellon University. He is also author/co-author of numerous books and has published over 100 articles in economics, management and behavioral sciences.

James March is Fred H Merrill Professor of Management, and Professor of Political Science and Sociology at Stanford University. He has jointly written many books and has written numerous articles on the subject of behavioral science.

A Behavioral Theory of the Firm has become a classic work in organizational theory, looking inside the firm to develop new theoretical ideas abnout economic behavior. The second edition reaffirms the seminal arguments and insights of the first and puts the original text in its contemporary context.

Rejecting the portrayal of the firm found in classical economic theory, the authors focus on the actual behavior of business firms. Their ideas, which have influenced students of organizations throughout the social sciences, capture the fundamentals of organizational decision making, offering important perspectives not only on economic organizations but also on governmental agencies and educational institutions.

For students and specialists the second edition of this pathbreaking book offers the original theory along with an examination of work that has taken place since the book was originally published. It provides a new statement of some of the more significant modern ideas for understanding the firm as an organization.