Simulation-based Influence of Aspiration Models on Firms' Behavior
| Authors | |
|---|---|
| Year of publication | 2017 |
| Type | Article in Proceedings |
| Conference | Proceedings of the International Scientific Conference of Business Economics, Management and Marketing ISCOBEMM 2017 |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | aspiration models; firm behavior; simulation-based testing |
| Description | According to the behavioral theory of the firm, the performance feedback process is one of the key factors influencing firms’ decisions on strategies and their changes. The research contained in this paper compares the influence of four classical aspiration models (historical, social, mixed and switching) on firms’ strategy choices. Using NetLogo simulation software, a simple model of firms’ behavior is constructed and used to analyse these effects. The role of the social aspiration model is highlighted as it partially differs from the other aspiration models analysed. This indicates the need to focus attention on a firm’s reference group of competitors. In general, the paper advocates the use of simulation for behavioral research as a useful, though supplementary, tool for researchers. |
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