We integrate and extend research on causal ambiguity, indicating the principal causal paths from ambiguity to performance and discussing the connections between empirical findings and resource-based expectations. We then develop the linkage between causal ambiguity and management perception....

Behavioral strategy merges cognitive and social psychology with strategic management theory and practice. Despite much progress, the aims and boundaries of behavioral strategy remain unclear. In this paper we define behavioral strategy and identify the main unsolved problems. We propose a...

"Over budget, over time, over and over again" appears to be an appropriate slogan for large, complex infrastructure projects. This article explains why cost, benefits, and time forecasts for such projects are systematically over-optimistic in the planning phase. The underlying reasons for...

This Special Issue explores the impacts of behavioral strategy on management practice. We believe that behavioral strategy can best contribute to management practice by shifting its focus from individual decision biases to the design of behaviorally-informed decision processes at the level of...

This paper gives an overview of good and bad practice for understanding and curbing cost overrun in large capital investment projects, with a critique of Love and Ahiaga-Dagbui (2018) as point of departure. Good practice entails: (a) Consistent definition and measurement of overrun; in contrast...

The acknowledged importance of uncertainty in economic decision making has stimulated the search for neural signals that could influence learning and inform decision mechanisms. Current views distinguish two forms of uncertainty, namely risk and ambiguity, depending on whether the probability...

Neuroeconomics uses knowledge about brain mechanisms to inform economic analysis, and roots economics in biology. It opens up the "black box" of the brain, much as organizational economics adds detail to the theory of the firm. Neuroscientists use many tools— including brain imaging, behavior...

Market experiments designed to test whether individual errors are reduced by markets generally indicate that errors do make prices or trading volume irrational. For example, in markets for assets of uncertain value a "representativeness"- based theory predicts deviations of prices from Bayesian...

Linear models which fit regression equations to clinical judgments. then use the fitted parts of judgments as "bootstrapped" judgments, have outperformed clinical judgments in many tasks. Empirically, the phenomenon has been pervasive, but general conditions for the success of bootstrapping...

Commodity options are the right to buy or sell a specified quantity of a commodity, or commodity futures contract, at a specified price. The publicity surrounding several "boiler room" scams involving unwary buyers has given commodity options a bad name. Currently, only a handful of firms sell...