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The micro foundations of the corporate economy
Author(s) -
Eichner Alfred S.
Publication year - 1983
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090040304
Subject(s) - odds , macro , economics , neoclassical economics , theory of the firm , positive economics , medicine , logistic regression , computer science , programming language
This paper challenges the orthodox microeconomic theory of the firm which is being gradually replaced as the consensus view by managerialist, behaviourist, institutionalist and post‐Keynesian schools of thought. From this new microeconomics is emerging a synthesis which is providing the foundations for a theory of the ‘megacorp’. Megacorps have behaviour patterns at odds with those of the atomistic firm. Unless this is understood and an appropriate theory developed, attempts to manage the economy by traditional means are doomed to failure. The paper lays the foundations of such a theory at both the micro and macro levels.