This paper discusses the formation of organizational knowledge of boundedly rational Economic agents and studies the necessity of hierarchical coordination of economic agents. We consider a firm that consists of a management and N subordinated shops....

A computational economics model of managerial compensation is presented. Risk-averse managers are simulated, and shown to adopt more risk-taking under the influence of stock options. It is also shown that stock options can both help a new entrant compete in an established market; and can help...

Purpose At the core of the success of any firm is its ability to satisfy customer preferences. It has also been part of managerial wisdom that it is good management practice to treat a market as that comprising several market segments and to serve each segment with a different marketing mix. It...