Charlatans, altruists and rationality

Abstract

This paper reconsiders the fundamental rationality assumption governing managerial decision-making, in the light of developments in economic theory. Such revisionism proposes the notion of opportunism as an alternative to simple, self-interest seeking. Opportunism is discussed and also contrasted with an a ssumption found in more behavioral research, that firms strive for fairness in their dealings with others. Both extreme views are shown to be contingent upon expectations and expected values and reflective of a common rationalist orientation. Similarly, the effect of cultural factors is posited as a reflection of differing perceptions and values, and not due to differences in basic motivation.