Inspired by the behavioral theory of the firm and prospect theory, a large empirical literature has examined the association between performance and organizational risk taking. Such associations have often been attributed to the influence of performance on risk attitudes. This paper shows that a...

To what extent can one infer that superior capabilities are driving sustained superior performance? Modeling performance as some combination of differences in capabilities and processes of cumulative advantage, we argue that a Bayesian framework in which decision makers take into account the...

Many organizational actions need not have any immediate or direct payoff consequence but set the stage for subsequent actions that bring the organization toward some actual payoff. Learning in such settings poses the challenge of credit assignment (Minsky 1961), that is, how to assign credit for...