In this paper, we develop a theory and model of organizational founding and the emergence of collective beliefs and strategies. We explicate how collective beliefs, resulting in the formation of new organizations, emerge via three social mechanisms: sorting or matching, interaction, and...

This paper explores the interconnections between two of Herbert Simon's key concepts, bounded rationality and decomposability, and show how this unity provides the starting point for merging cognitively focused approaches to behavioral economics with evolutionary/institutional economics into a...