Patterns and Dependencies of Firm Growth

In this report, we contrast and talk about alternative approaches to integrating bounded rationality with the concept of economic organization, focusing on the organizational capabilities technique, which is highly impacted by the works of Nelson and Winter, organizational economics, specifically transaction cost economics, and, ultimately, a small set of the literature on biases to judgment and cognition.

I debate that, different to the typical opinion, both the organizational capabilities technique and transaction cost economics treat bounded rationality very “thinly,” the former being in actuality more taken up with organizational routines than individual boundedly rational behavior, the latter only invoking bounded rationality to the degree that it helps describing incompleteness of contracting. The rich literary works on cognitive biases, etc. indicates a “thick” approach to bounded rationality which might be beneficial with respect to furthering the theory of economic organization. In addition i provide examples relating to the internal organization of firms.

Source: Copenhagen Business School

Download URL 2: Visit Now

Patterns and Dependencies of Firm Growth