This paper offers a sketch of what an economic theory of the firm would look like if it were founded on the thought of Joseph Schumpeter, particularly on Chapters 1-2 of his Theory of Economic Development. Schumpeterian analysis requires an intuitively appealing and realistic conceptualization...

This study presents a new model of search on a “rugged landscape,” which employs modeling techniques from fractal geometry rather than the now-familiar NK modeling technique. In our simulations,firms search locally in a two-dimensional fitness landscape, choosing moves in a way that responds...

This paper argues that economists have been schizophrenic regarding the theory of the firm in a competitive industry. In much (but not all) of their formal mathematical modeling, maximization and equilibrium are taken literally. Ordinarily, however, both maximization and equilibrium are...

Stochastic theories of the firm size distribution explain observed size differences among firms as the consequence of random growth rate differences, accumulated over time. Little attention has thus far been paid, however, to economic interpretation of the abstract stochastic processes involved....

This paper reviews the case for an evolutionary approach to problems of economic analysis, ranging from the details of individual firm behavior in the short run through industrial dynamics to the historical evolution of institutions and technologies. We draw upon a substantial body of recent...

This article offers a sketch of what an economic theory of the firm would look like if it were founded on the thought of Joseph Schumpeter, particularly on Chapters 1 and 2 of his Theory of Economic Development. Schumpeterian analysis requires an intuitively appealing and realistic...