Firm Organization and Human Behavior

One reason why firms exist is because they are organizations within which cooperative corporate cultures based on human social predispositions can evolve. Researchers at the Max Planck Institute of Economics present formal models that depict how the biased transmission of cultural contents via social learning processes within the firm influence employees’ behavior and the performance of the firm. The naturalistic approach suggested here provides a behaviorally enriched theory of the firm. It draws on insights from other disciplines such as psychology, anthropology, and sociology.