Sources of Managerial Discretion. The Corporate Decision Process. Modelling Framework. Modelling Framework. Operationalizing the Model. Investments and Capital Structure. Selling Costs and Market Share. Production Inventory Decisions. In Retrospect.

This work presents a quantification of the managerial behaviour within decentralized organizations. It provides practical insights into the internal functioning of the firm, the relationships between the managers at different organizational echelons, and the conditioning effects of the organizational controls and the market environment external to the firm. It forms a basic contribution to the theoretical modelling, methodological and estimation procedures, and empirical insights into the nature and operation of managerial discretion in decentralized organizations.