TECHNOLOGICAL CHANGE AND THE THEORY OF THE FIRM: THE AMERICAN LOCOMOTIVE INDUSTRY, 1920-1955

This is a case study of decision making during a period of rapid technological transition from steam to diesel power in the locomotive-building industry. A brief historical review of the changing technical environment with which the firms were struggling precedes an analysis of the decision-making of the several locomotive builders. Where behavior is inconsistent with profit maximization, behavioral explanations are suggested. The study demonstrates also the substantial long-term economic impact of government policies on the locomotive-building industry. Production assignments of specific locomotive types in 1942 significantly affected the fate of the individual builders and the status of competition in the postwar period.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00076805
• Corporate Authors:

  Harvard Graduate School of Business Administration

  214-16 Baker Library, Soldiers Field
  Boston, MA  United States  02163
• Authors:
  • Marx, T G
• Publication Date: 1976-4

Media Info

• Pagination: p. 1-24
• Serial:
  • Business History Review
  • Volume: 50
  • Issue Number: 1
  • Publisher: Harvard University
  • ISSN: 0007-6805

Subject/Index Terms

• TRT Terms: Competition; Decision making; Diesel locomotives; History; Industry structure; Locomotive builders; Policy; Profitability; Steam locomotives
• Old TRIS Terms: Government policies
• Subject Areas: Administration and Management; History; Policy; Railroads; Vehicles and Equipment;

Filing Info

• Accession Number: 00167496
• Record Type: Publication
• Source Agency: Business History Review
• Files: TRIS
• Created Date: Dec 27 1977 12:00AM