SN18 Increasing Influence of Neoclassical Economic Theory After the 1960s, the university-based business school became increasingly influenced by neoclassical economic theory and the "Chicago School." Neoclassical economists had a more narrow view of managers and the obligations of the firm than institutional economists: Institutional Economists emphasized the role of power, values, belief systems, and historical contingency on economic behavior. This supported a broad view of managers and the obligations of the firm. Neoclassical Economics emphasized the role of markets, contracts, trade, and property rights on economic behavior. This supported a narrow view of managers and the obligations of the firm. DISCUSSION QUESTIONS Explain how the emphasis of neoclassical economists supported a narrow view of managers and the obligations of the firm. Why do you think they maintained this narrow view? How did it affect the theory of the firm