Traditional Economic Analysis Assumptions of Rationality and Equilibrium in Strategy Research : The Limits of

@inproceedings{Bromiley2003TraditionalEA,
  title={Traditional Economic Analysis Assumptions of Rationality and Equilibrium in Strategy Research : The Limits of},
  author={Philip Bromiley and Chris Papenhausen},
  year={2003}
}
We argue that two core assumptions of economic analysis – managers and employees make optimal decisions and markets operate in equilibrium – have undesirable implications in strategic management research.To show how these assumptions lead to dubious implications, we analyze two exemplars of the rigorous application of these assumptions in strategic management research: Barney’s (1986a) ‘Types of competition and the theory of strategy: toward an integrative framework’ and Mosakowski’s (1998… CONTINUE READING