"Industrial psychologists and sociologists have been exploring the institutions and practices that are internal to business organizations for decades. Attention by economists is more recent, and the economist's approach to analyzing internal labor markets is somewhat different from that of the psychologist or sociologist. The trademark of an economist is to focus on prices and income as central determinants of observed behavior. Other social scientists place a much lower weight on these variables, instead awarding the major role to social or psychological factors. Indeed, the word "institution" in economics generally connotes that the behavior is affected by constraints other than price.
The economic approach is more rigorous, more rational and probably better for prediction than that of the industrial psychologist. It is based on optimizing behavior in an environment where constraints are well-defined. The economic approach is also somewhat less accurate as a description of labor market phenomena. Thus, psychologists have concepts and data which would be useful to economists. A number of their ideas have already made their way into economics and more will follow."
- Ed Lazear - Labor Economics and the Psychology of Organizations, JEP 1991