A Theory of the firm allowing for multiple objectives
DOI:
https://doi.org/10.1590/1980-53573241jhmKeywords:
Theory of the firm, Utility models of the firm, Lexicographic preferences, Multiple objectives, Behaviorism, Satisficing, Bounded rationalityAbstract
The distinction between the cases ofmultiple irreducible objectives and of a utility function's multiple arguments is the starting point of the analysis. A first case is treated employing the lexicographic principle and it is shown that the Baumol type models and behaviorist notions such assatisficing can therebygain a theoreticalstructure. It is shown that the satisficing notion implies the existence of multiple goals. The second case, corresponding to the utility functions of the firm when these display the functional form, an implicit restrictive necessary condition for the existence ofa specific utility function is disclosed.
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