Operating Rules in Organizations: Macroeconomic and Microeconomic Analyses

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When economists claim that rules are coordinating devices, they do not explain how those rules operate in the reality of organizational life. Rules do not indicate behaviour, since their most important characteristic is their remoteness from the solution. Thus, rules are merely frameworks for action requiring constant interpretation. This book is grounded in Wittgenstein’s understanding of rules as having significance only in the course of their application. It focuses on two kinds of rules - macroeconomic and microeconomic - through detailed case studies of wage indexation and labour productivity.