Behavioural Theory of the Firm has become a classic work in organizational theory, and is one of the most significant contributions to improving the theory of the firm. This second edition includes new material which puts the original text in a contemporary context. Behavioural Theory of the Firm has become a classic work in organizational theory, and is one of the most significant contributions to improving the theory of the firm. This second edition includes new material which puts the original text in a contemporary context. List of Tables and Figures vii Acknowledgments ix Preface to the Second Edition xi Introduction 1(3) Antecedents of the Behavioral Theory of the Firm 4(26) The theory of the firm 4(12) Organization theory 16(3) Research questions in a revised theory of firm decision making 19(3) Summary 22(8) Appendix: Mathematical theory of the firm 23(7) Organizational Goals 30(22) The problem of collective goals 30(3) The goal formation process 33(13) Business goals and price and output decisions 46(4) Summary 50(2) Organizational Expectations 52(47) Expectations in theories of business decision making 52(3) Four case studies in the use of expectations 55(24) Communications in theories of business decision making 79(1) Two experiments on organizational communication 80(13) Implications for a theory of organizational expectations 93(6) Organizational Choice 99(37) A partial model of organizational choice 100(17) The firm as an adaptive institution 117(3) Standard operating procedures 120(14) Summary 134(2) A Specific Price and Output Model 136(25) General view of price and output determination in a retail department store 137(4) Details of output determination 141(6) Details of price determination 147(8) Tests of the detailed models 155(4) Summary 159(2) A Summary of Basic Concepts in the Behavioral Theory of the Firm 161(16) Goals, expectations, and choice 162(2) Four major relational concepts 164(10) The basic structure of the organizational decision-making process 174(3) Some Implications 177(37) Descriptive analysis: the firm 178(12) Descriptive analysis: aggregates of firms 190(6) Descriptive analysis: non-business organizations 196(5) Normative analysis: the firm 201(5) Normative analysis: economic policy 206(5) Summary 211(3) An Epilogue 214(33) Core ideas of the behavioral theory of the firm 214(2) Developments in economic theories of the firm 216(9) Developments in behavioral studies of organizational decision making 225(12) Postscript 237(10) Index 247(3) Author Index 250