This paper focuses on the role of managerial cognition as a source of heterogeneity in firm strategies and performance. We link differences in mental models to differences in decision rules and performance in a management simulation. Our results show more accurate mental models lead to better...

This handbook comprehensively surveys research on organizational decision-making. It looks at decision-making at the level of individuals, groups, organizations, and inter-organizations emphasizing psychological perspectives while encompassing insights from economics, political science, and...