The paper studies the impact of a diversification vs. a core-competence oriented strategy using an agent-based simulation model with the aim to analyze whether agent-based models are a viable tool for analyzing questions related to corporate strategy.

When group decisions involve the allocation of resources to group members, the members might have an incentive to strategically distort any information they provide to increase their share of resources.(...)

This paper shows an environment for agent-based simulation of corporate strategy.

We study an agency model, in which the principal has only incomplete information about the agent's preferences, in a dynamic setting. Through repeated interaction with the agent, the principal learns about the agent's preferences and can thus adjust the inventive system. In a dynamic...