In this paper we use the theory of social situations (TOSS) to examine the stability in advertising and (price) competition games. In this context, we derive the interesting result that with endogenous and exogenous advertising the incumbent need not maintain a hungry-look, i.e.,...

Frank Knight distinguished between 'uncertainty' and 'risk' to specify the true nature of 'profit’, but his specification never caught on and I do not see realistic possibilities for renewing research in this direction. Knight also used uncertainty to specify the distinctive role of the...

Organizational theorists built their knowledge of decision making through a progressive critique of rational choice theory. Their positioning towards rationality, however, is at odds with the observation of rationality persistence in organizational life. This paper addresses this paradox. It...

This article examines how dynamic changes in information cost structure and time preferences affect consumers' search and switching behavior over time and lead to lock-in. The information cost structure is conceptualized as a tradeoff of initial setup costs and ongoing usage costs. Lock-in is...

In a world of accelerating innovation cycles, shortening knowledge half-life periods, growing plurality of interests, sped-up communication flows and rapidly progressing global cross-linking, corporate environments become more and more complex. This contribution explores the relation between...

Subjective uncertainty helps explain features of entrepreneurial activity that fall outside the scope of models that focus on information asymmetries and misaligned incentives. Uncertainty, construed simply as missing information, can lead to unintended misjudgments. Efforts to control...

In practice, two types of tournaments can be distinguished - U-type and J-type tournaments. In U-type tournaments, workers receive prizes that have been fixed in advance. In J-type tournaments, the employer fixes an aggregate wage bill in advance, which is then shared among the workers according...

Foundational to the discipline of management is the idea that organizational decisions are a function of expected outcomes; hence, the customary empirical approach to employ multivariate techniques that regress performance outcome variables on discrete measures of organizational choices (e.g.,...

Higher commodity prices, and higher currency and commodity price volatility have combined with challenging economic circumstances to make for very challenging economics within many industries today. These factors introduce risk to both top line revenue as well as the cost structure to wreak...

This study examines the determinants of farm loan delinquencies, and in particular, the influence of multiple loans and multiple lenders on delinquency. The number of lenders used by a borrower, the number of loans outstanding, and the interaction of the two factors are all positively related to...