Aspects of the X-efficiency theory of the firm

摘要: The model explains the phenomenon of X-efficiency, and presents some microeconomic propositions based on new foundations that go beyond economic man postulate. It postulates behavior a compromise between internal standards unconstrained desires. analysis emphasizes: (1) individual, not firm, as basic decision unit; (2) notion effort variable; (3) determination costs result interconnected individual decisions, by simultaneous price, technique, quantity decisions "supermanager." Firm members are presumed to have discretion hence interpret their jobs. Inert behavioral areas, entropy, motivational interpretation signals elements model. One is firms do minimize costs, this may hold even under competition.