Deontic Constraints are Maximizing Rules

Hammerton, Matthew

doi:10.1007/s10790-020-09731-8

Cited by 4 publications

(3 citation statements)

References 21 publications

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“…By highlighting the real-life fact that firms generally employ different decision criteria of priority and employ their specific means to optimize the realization of their missions [17,44,46], this paper is able to partially actualize the goal of research outlined in the introduction section earlier. Because this paper starts its analytical reasoning on the concept of firms' natural endowments, it opens up a large area of research, where most, if not all, of the established results in economics need to be checked to see whether or not they still hold true when the order of real numbers is not the same as the conventional one.…”

Section: Discussionmentioning

confidence: 99%

“…More specifically, among all potentials for future research, one can formalize additional ways on how decision-making managers and entrepreneurs prioritize their available alternatives in real life. Only by doing so, we can hopefully answer the loud calls for the desperate need to reconstruct the existent economic theories [5,17,25,36,43,44,46].…”

Section: Discussionmentioning

confidence: 99%

“…It is evident that in real life, these two behavioral hypotheses are simply not generally true. Firms with different systems of values and beliefs order real numbers differently and employ respectively firm-specific methods to optimize their individual objective functions [10,17,44,46]. For example, there are firms that do not place profit maximization as their primary objective [23,24].…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Properties of a firm’s factor demands, optimal production correspondence, and an economy‘s aggregated supply/demand

Forrest¹,

Gong²,

Clark³

et al. 2023

Math. Appl.

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Many theoretically beautiful conclusions of the producer theory were derived on the common assumption that every firm attempts to maximize its profit and minimize its cost, while all firms employ the same methodology in their optimization efforts. By losing up these two behavioral assumptions and by introducing the concept of value-belief systems for individual firms, this paper reestablishes a few well-known results of the producer theory for the general case of not specifying what criteria of priority a firm holds. At the same time, this paper shows by using counterexamples, among others, that generally, (i) except for a specific scenario, the optimal production correspondence does not satisfy the homogeneity of degree zero, and (ii) even when individuals act in their own best self-interests, they may not collectively produce unintended greater social benefits and public goods. In the end, several topics of expected significance are suggested for future research.

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Section: Discussionmentioning

confidence: 99%