Developing and effectively using firm-specific, idiosyncratic knowledge in a firm is becoming fundamental for the formation of sustainable competitive advantages. The issue unavoidably touches upon learning and management topics (motivation, compensation, etc.) A central one has to do with how...

Economics-based models typically overlook management decisions and firms' capabilities. We develop a model that puts firms at center stage by simulating the aggregate behavior of a population of firms resulting from specific management decisions. The model features a learning process that...