This book provides a practitioner's foundation for the process of explanatory model building, breaking down that process into five stages. Donald W. Katzner presents a concrete example with unquantified variable values to show how the five-stage procedure works. He describes what is involved in...

Contents: Preface -- 1. Introduction to organization in the economic firm -- Part I: The structure of authority -- 2. Rank, level, and control -- 3. Height and thickness -- 4. Supervision -- 5. Time, order, and firm organization -- Part II: Organizational complexity -- 6. Complexity and...

The book provides substantial discussion of the model’s methodological background; returns to scale; the transformation surface and the fixed-factor-supply economy; existence, uniqueness, and stability of equilibria; the dynamics of market adjustments; methodological individualism and the theory...