Managerial Discretion Models

Oliver Williamson

Chapter 5 in Readings in Industrial Economics, 1972, pp 67-90 from Palgrave Macmillan

Abstract: Abstract The preceding chapters have reviewed the kinds of suggestions for modifying the theory of the firm that have been made in the past fifteen years, examined possible limitations of the profit maximization assumption, and suggested an alternative motivational foundation that would appear to be generally consistent with managerial behavior (broadly conceived). The objective now is to develop a model that is responsive to some of the criticisms of the classical theory of the firm by providing analytical content to the motivational assumptions given in Chapter 3. This involves the construction of utility functions for the firm that make the notion of ‘expense preference’ explicit. Invoking the assumption of maximizing behavior, equilibrium and comparative statics properties of the models are obtained.

Keywords: Profit Maximization; Marginal Rate; Indifference Curve; Substitution Effect; Actual Profit (search for similar items in EconPapers)
Date: 1972
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15484-5_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349154845

DOI: 10.1007/978-1-349-15484-5_5

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().