What makes a decision strategic? When is strategy most important? This paper studies the structure and value of strategy (in its everyday sense), starting from a (functional) definition of strategy as ‘the smallest set of (core) choices to optimally guide the other choices.' This definition...

This paper shows why members of an organization often share similar beliefs. I argue that there are two mechanisms. First, when performance depends on making correct decisions, people prefer to work with others who share their beliefs and assumptions, since such others 'will do the right thing'....

I show that an agent's motivation to do well (objectively) may be unambiguously bad in a world with differing priors, i.e., when people openly disagree on the optimal course of action. The reason is that an agent who is strongly motivated is more likely to follow his own view of what should be...

We use an economic model to study the optimal management of know-how, defined here as employee-generated information about the performance of specific methods or solutions to problems that may or will recur in the future. We derive three main results. First, information about successes is...

When a CEO tries to formulate 'a strategy', what is she looking for? What exactly is 'a strategy', why does it matter, and what are its properties?This paper defines an explicitly formulated 'strategy' as the 'smallest set of choices and decisions sufficient to guide all other choices and...