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BOUNDED RATIONALITY AND TECHNICAL PROGRESS IN THE THEORY OF THE FIRM

By ΕΜΜΑΝΟΥΗΛ ΑΘΑΝΑΣΙΟΥ

Abstract

THE EXISTENCE OF PURE UNCERTAINTY IMPLIES BOUNDEDLY RATIONAL BEHAVIOUR, HOWEVERWHEN ON AN EQUILIBRIUM TREND, CETERIS PARIBUS ASSUMPTIONS MAY BE USED SO THATFULLY RATIONAL BEHAVIOUR IS AN ADEQUATE DESCRIPTION. IN THE EXTREMELY SHORT PERIOD AND IN THE FACE OF ADJUSTMENT TO A NEW EQUILIBRIUM TREND, THE MIX OF UNCERTAINTY AND RISK FACING THE FIRM MAY CHANGE. THE MODEL DEVELOPED IN THIS THESIS ADDRESSES THIS PROBLEM VIS A VIS DECISIONS CONCERNING PRODUCTION RISK INTRODUCED THROUGH TECHNICAL CHANGE. THE DECISION CALCULUS COMBINES VINTAGE TECHNOLOGY, PORTFOLIO SELECTION AND SATISFYING RULES.

Topics: Bounded rationality, Microeconomics, TECHNICAL PROGRESS, THEORY OF THE FIRM, ΘΕΩΡΙΑ ΤΗΣ ΕΠΙΧΕΙΡΗΣΗΣ, ΜΙΚΡΟΟΙΚΟΝΟΜΙΚΗ ΘΕΩΡΙΑ, ΠΕΡΙΟΡΙΣΜΕΝΟΣ ΟΡΘΟΛΟΓΙΣΜΟΣ, ΤΕΧΝΙΚΗ ΠΡΟΟΔΟΣ
Publisher: National and Kapodistrian University of Athens
Year: 1996
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