Behavioral Theory of the Firm has become a classic work in organizational theory, and is one of the most significant contributions to improving the theory of the firm. This second edition includes new material which puts the original text in a contemporary context.The authors:* Use experiments and empirical observations to build a model of decision making which can be compared with reality.* Reject the structure of the firm as represented by classical economic theory, instead focus on the discretion of management.* Offer a new way of viewing the effects of the organization, communications and individuals on the firm's activity.For students and specialists the second edition of this pathbreaking book offers the original theory, a new summary of the most important work that has taken place since the book was originally published, and an approach which not only advances the theory of the firm but provides a rigorous model for all research in the social services.It is the most important and provocative view yet advanced for seeing inside the firm to understand it as an organization and an economic entity.