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• Description This book contains the most sustained and serious attack on mainstream, neoclassical economics in more than forty years.
• Richard R. Nelson and Sidney G. Winter focus their critique on the basic question of how firms and industries change overtime.
• They marshal significant objections to the fundamental neoclassical assumptions of profit maximization and market equilibrium, which they find ineffective in the analysis of technological innovation and the dynamics of competition among firms.
• To replace these assumptions, they borrow from biology the concept of natural selection to construct a precise and detailed evolutionary theory of business behavior.
• They grant that films are motivated by profit and engage in search for ways of improving profits, but they do not consider them to be profit maximizing.