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Cited by 1,314

The DOI matches its Crossref record.

A Formal Theory of the Employment Relationship

Simon, Herbert A.·1951·Econometrica
DOI 10.2307/1906815
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Abstract

A model was constructed that incorporates rational grounds for the choice by two individuals between an employment contract and a contract of the ordinary kind (which we have called a sales contract). By a generalization of this model one can account for the fact that in an employment contract certain aspects of the workers's behavior are stipulated in the contract terms, certain other aspects are placed within the authority of the employer, and still other aspects are left to the worker's choice. Since administrative theory was interested in explaining behavior within the framework of employment relations, and economic theory in explaining behavior within the area of market relations, the model suggests one possible way of relating these two bodies of theory. The most serious limitations of the model lie in the assumptions of rational utility-maximizing behavior incorporated in it. (Author)

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Metadata

Authors
Simon, H. A.
Venue
Econometrica
Publisher
JSTOR
Published
1951-07
Volume
19
Issue
3
Pages
293
ISSN
0012-9682 (ISSN-L)
DOI
10.2307/1906815
OpenAlex
W2025475785
Cited by
1,314
References
0
FWCI
0.00
Type
journal article
Language
en
Open access
closed

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.