Changing Objectives of Firms and Managerial Preferences: A Review of Models in Microeconomics

Pradeep Kumar B

MPRA Paper from University Library of Munich, Germany

Abstract: Theoretically, producer behavior models postulate that firms have had different objectives ranging from profit maximization to setting aspirational levels. The assumption of objective of profit maximization was shaped on the basis of the rationality principles which has lost relevance with the coming of the principle of behavioral economic in recent time. The present paper intends to throw some light on changes that have been made in the objective of firms over years and attempts to review some models emphasizing managerial utility as the core objective of firms.

Keywords: Profit Maximization; Sales Maximization; Managerial Utility Function; Managerial Discretionary Powers; Slacks and Salaries; Behavioral Economics (search for similar items in EconPapers)
JEL-codes: D01 (search for similar items in EconPapers)
Date: 2021-07-06, Revised 2021-03-13
New Economics Papers: this item is included in nep-hpe and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Shanlax International Journal of Management 8.4(2021): pp. 43-46

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/106967/1/MPRA_paper_106967.pdf original version (application/pdf)

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:pra:mprapa:106967

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().