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Excerpt from Economic Theory and Organizational Analysis
The purpose of this book is to consider two types of theoretical approaches that are closely related: microeconomic theory and organizational analysis, with emphasis on the latter. Microeconomic theory is a well-developed subject and only the ele ments of that theory need be presented here to be able to contrast the two approaches and, where possible, to compare some of their results. Organization theory, on the other hand, is not well devel oped, and consequently a considerable portion of this book will be devoted to the development of a theory of organization built on the foundation of a few critical ideas.
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