Extending the Cyert-March duopoly model: Organizational and economic insights

Cyert and March's A Behavioral Theory of the Firm is a fundamental and clas sic book; it was an early integration of organization theory and economics of duopoly. Further, it introduced computational, or simulation, modeling a s a means to investigate theoretical questions about the behavior of organi zations. This article validates aspects of those early studies. More import antly, the authors extend our understanding of the roles that routines play in an organizational view of the firm and how routines can account for the economic behavior and performance in a duopoly.