Relating Economic and Behavioral Perspectives in Strategy Research

This paper discusses the need and potential for a greater integration of economic and behavioral approaches to strategic management research questions. The paper examines several popular economics-based approaches (game theory, the structure-conduct-performance paradigm, transaction cost theory, agency theory, and the resource-based view of the firm) that have been used to examine strategy topics. The paper shows how a behaviorally-oriented approach could extend these economic/ rational approaches and provide a more valuable, integrative strategic management perspective.