ABSTRACT

In this chapter, we look more closely at the behavior of individuals in several types of organization as it is shaped and constrained by the rules, customs and procedures of the system (RCP) that constrain decision making in these organizations. We also attempt to provide an approximate formulation of the goals pursued by these organizations by aggregating the weighted preferences of the principal groups of their members. Following the ideas sketched out in Chapter 2, we focus on the identity of owners-controllers in analyzing three principal types of organizations: households, firms, and government organizations.