The important variables include authority relations, and communication styles. In ETOA an inert area is a range of role interpretations acceptable to all persons involved, and implies that an unacceptable role interpretation exists leading to a non-maximizing level of work effort being supplied. The effect of authority, good communication, lumpy resources, to name just three, are replaced by the pressure from the market, and the human personality on the firm. In his 1987 book, Inside the Firm, the concept of the role is again absent. In XE theory the concept of the role, so central in ETOA, is absent. The entrepreneur became an inter-market actor not a paper-organization actor. ![]() Organizational analysis played a very minor role in Leibenstein’s writings after 1960. ![]() Roger Frantz, in The Beginnings of Behavioral Economics, 2020 XE theoryĮTOA was about the firm analyzed from the perspective of organizational analysis.
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