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Fortunately, economic theory is more broad than classic economics. Managerial and behaviour theories here: https://en.wikipedia.org/wiki/Theory_of_the_firm ht
by TheSpiceIsLife 6y ago
Fortunately, economic theory is more broad than classic economics.
Managerial and behaviour theories here:
https://en.wikipedia.org/wiki/Theory_of_the_firm https://en.wikipedia.org/wiki/Theory_of_the_firm
Linked to from the Economics article under the Theory section:
https://en.wikipedia.org/wiki/Economics https://en.wikipedia.org/wiki/Economics
The theory your suggesting here has been known since at least the late 50s.
You might also be aware of, or find interesting anyway, the principal–agent problem:
https://en.wikipedia.org/wiki/Principal%E2%80%93agent_problem https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...
Edit: typo
- jacques_chester 6y agoI don't think this reply should be downvoted. It might be slightly spicy, but it does reflect that economics in the 20th century made enormous strides in understanding the observable behaviour of actual firms and markets. Transaction costs, agent problems, information economics, institutional economics, mechanism design and so on are powerful insights into the world around us. I've learned more about how software grows and spreads from economists than from software engineers.
- Dylan16807 6y agoIt's a useful bit of information, but it's insulting the comment it replies to without actually disagreeing at all. There's a reason the initial comment said "classical" economics! I can see why it earned some downvotes.
- TheSpiceIsLife 6y agoNot everything we write here has to be disagreement or a counterpoint. I can see how it might have come across as brusque, I certainly didn’t intend any insult.
- willcipriano 6y agoI was not insulted. The links added further reading and more context.
- TheSpiceIsLife 6y agoExcellent, this is good :)