This study points out that the optimization- and equilibrium-based microfoundations of neoclassical economics have inherent limitations in explaining the actual behavior of consumers and firms in modern business environments dominated by fundamental u...
This study points out that the optimization- and equilibrium-based microfoundations of neoclassical economics have inherent limitations in explaining the actual behavior of consumers and firms in modern business environments dominated by fundamental uncertainty and procedural rationality. As an alternative analytical framework, this study reexamines Post-Keynesian Economics(PKE) consumer and firm theories from a managerial perspective. PKE analyzes decision-making processes based on realistic assumptions such as the endogeneity of preferences, the hierarchy of needs, growth-oriented firm objectives, and cost-plus pricing. Specifically, consumer theory presents an expanded marketing analytical framework incorporating emotions, social relationships, and ESG values, while firm theory identifies strategic behaviors aimed at price stability and securing market power under uncertainty. Collectively, post-Keynesian micro theory offers high explanatory power for complexities facing business administration, such as non quantifiable decision-making and socio-emotional factors. It contributes academically by reconstructing the theoretical foundations across marketing, strategy, operations, finance, and other business disciplines, while providing practical implications.