Abstract
A number of theories of the firm have their roots in the physical sciences, particularly in biology. Such theories can be divided into two groups consisting of (1) theories of homeostasis which emphasise short-run changes, and (2) theories of viability which emphasise long-run changes.1 In both cases the underlying analogy is that firms, like organisms, start small, then mature and produce offspring, and eventually die.
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Notes and References
For further details of both homeostasis and viability see L. S. Burns, University of Washington Business Review (Oct 1959). See also A. G. Papandreou, in Survey of Contemporary Economics, ed. B. Haley, p. 212 for a discussion of the hypothesis of ‘selection of the fittest’.
G. Tintner, Econometrica (1941).
E. T. Penrose, American Economic Review (Dec 1942). See also American Economic Review (Sep 1953) pp. 600–7.
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© 1976 P. J. Curwen
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Curwen, P.J. (1976). Biological Theories of the Firm. In: The Theory of the Firm. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-15645-0_18
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DOI: https://doi.org/10.1007/978-1-349-15645-0_18
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