scispace - formally typeset
Search or ask a question
Topic

Managerial economics

About: Managerial economics is a research topic. Over the lifetime, 1524 publications have been published within this topic receiving 83965 citations.


Papers
More filters
Posted Content
TL;DR: In this paper, the implications of theories that relate to life-cycle incentives compression, and peer pressure are given support using two such data sets, and it is argued that the importance of personnel economics in undergraduate and business school curricula will continue to grow.
Abstract: In 1987, the Journal of Labor Economics published an issue on the economics of personnel. Since then, personnel economics, defined as the application of labor economics principles to business issues, has become a major part of labor economics, now accounting for a substantial proportion of papers in this and other journals. Much of the work in personnel economics has been theoretical, in large part because the data needed to test these theories has not been available. In recent years, a number of firm-based data sets have surfaced that allow personnel economics to be tested. Using two such data sets, the implications of theories that relate to life-cycle incentives compression, and peer pressure are given support. The conclusion is that personnel economics is real. It is far more than a set of clever theories. It has relevance to the real world. Additionally, firm-based data make asking and answering new kinds of questions feasible. The value of research in this area is high because so little is known as compared with other fields in labor economics. Questions about the importance of a worker's relative position in a firm, about intrafirm mobility, about the effect of the firm's business environment on worker welfare, about the significance of first impressions can be answered using the new data. Finally, it is argued that the importance of personnel economics in undergraduate as well as business school curricula will continue to grow.

291 citations

Journal ArticleDOI
TL;DR: This article used rational choice theory to guide the evaluation of alternative policy options to correct market failure in environmental and resource economics, and found that rational choice can improve the performance of alternative policies.
Abstract: Traditional environmental and resource economics uses rational choice theory to guide the evaluation of alternative policy options to correct market failure Behavioral economics, however, has chal

283 citations

Journal ArticleDOI
TL;DR: This paper argued that the relationship between these two models has many of the attributes of an intergroup conflict and suggested that the response of some traditional management theorists to organizational economics is not based on these substantive differences.
Abstract: Donaldson's (1990) critique of organizational economics suggests four attributes of this model that make intellectual discourse and theoretical integration with traditional management theory difficult: the assumption of opportunism, different levels of analysis, the theory of motivation, and the prescriptive character of organizational economics. It is suggested that these differences are not a sufficient explanation of the response of some traditional management theorists to organizational economics. Rather than being based on these substantive differences, it is argued that the relationship between these two models has many of the attributes of an intergroup conflict. Possible responses to this intergroup conflict and the implications that these responses may have for understanding organizational phenomena are explored.

281 citations

Journal ArticleDOI
TL;DR: In this paper, the authors argue that behavioral economics should include two different kinds of theories: normative models that characterize the optimal solution to specific problems and descriptive models that capture how humans actually behave.
Abstract: There has been growing interest in the field come to me known as “behavioral economics” which attempts to incorporate insights from other social sciences, especially psychology, in order to enrich the standard economic model. This interest the underlying psychology of human behavior returns economics to its earliest roots. Scholars such as Adam Smith talked about such key concepts as loss aversion, overconfidence, and self-control. Nevertheless, the modern version of behavioral economics introduced in the 1980s met with resistance by some economists, who preferred to retain the standard neo-classical model. They introduced several arguments for why psychology could safely be ignored. In this essay I show that these arguments have been rejected, both theoretically and empirically, so it is time to move on. The new approach to economics should include two different kinds of theories: normative models that characterize the optimal solution to specific problems and descriptive models that capture how humans actually behave. The latter theories will incorporate some variables I call supposedly irrelevant factors. By adding these factors such as framing or temptation we can improve the explanatory power of economic models. If everyone includes all the factors that do determine economic behavior, then the field of behavioral economics will no longer need to exist.

272 citations


Network Information
Related Topics (5)
Capital (economics)
52.4K papers, 1.2M citations
79% related
Productivity
86.9K papers, 1.8M citations
77% related
Earnings
39.1K papers, 1.4M citations
76% related
Monetary policy
57.8K papers, 1.2M citations
75% related
Human capital
39.8K papers, 1.1M citations
75% related
Performance
Metrics
No. of papers in the topic in previous years
YearPapers
20231
20226
20215
20201
201911
20187