Interactions of Economic Theory And Operations Research

Cover Interactions of Economic Theory And Operations Research
Interactions of Economic Theory And Operations Research
Geoffrey P E Clarkson
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And they take as their objective the analysis and prediction of a firm's decision'^making behavior on price, output^ internal resource allocation, etc. To create such a theory, however, requires a knowledge of the major classes and attributes of business decisions. From such a research committment it ia easy to see how these researchers have been led to investigate the variety of alternatives facing business decision=makers as well as the processes by which choices are made. In brief, the objec...t of this research is to discover how organizational objectives are formed, how decision strategies are developed, and how on the basis of these strategies conflicts are re- 10/ duced and decisions made, — The minute one abandons the classical notion that all firms have a single, universal goal, i, e, to maximize net revenue, and substitute for it the notion that firms have a variety of goals they try to satisfy, then a decision mechanism must be introduced that permits conflicts between objectives to be resolved.

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