Advanced Search
MyIDEAS: Login

Imperfect Local Search Strategies on Technology Landscapes: Satisficing, Deliberate Experimentation and Memory Dependence

Contents:

Author Info

  • Karén Hovhannisian

    (DISA, University of Trento)

Abstract

This paper contributes to the recent stream of literature on NK Model’s applications to the field of technological evolution. It is argued that while the model has a great explanatory potential in economics proper, its behavioral foundations are still maladapted for treatment of purportive decision-making strategies for technological innovation. Concentrating on the decision rule for accepting novelties, we first analyze the consequences of intentional and unintentional imprecision in following hill-climbing strategy, highlighting the interplay between rigidity and deliberate experimentation. Building on Simon’s insights on satisficing behavior and designing without final goals we build a simulative model that provides a possibility to compare strategies differing in the desired level of imprecision. Secondly, we shift our attention to the question of organizational memory, analyzing in a simulation setting a fully memory dependent and a fully memory independent innovation-related strategies. The results confirm that from the one hand up to a certain level “imperfection” of rule-following behavior is a virtue rather than a threat, while from the other, that past successes can preclude adaptability of the firm, while disregarding such successes can be very risky.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/comp/papers/0405/0405009.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Computational Economics with number 0405009.

as in new window
Length: 39 pages
Date of creation: 10 May 2004
Date of revision:
Handle: RePEc:wpa:wuwpco:0405009

Note: Type of Document - pdf; pages: 39
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords: NK Model; Technology Landscape; Satisficing; Local Search; Simulation Analysis;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Levinthal, Daniel & March, James G., 1981. "A model of adaptive organizational search," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 307-333, December.
  2. Weitzman, Martin L, 1979. "Optimal Search for the Best Alternative," Econometrica, Econometric Society, vol. 47(3), pages 641-54, May.
  3. Roberts, Kevin & Weitzman, Martin L, 1981. "Funding Criteria for Research, Development, and Exploration Projects," Econometrica, Econometric Society, vol. 49(5), pages 1261-88, September.
  4. Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, vol. 49(3), pages 290-311, March.
  5. Koen Frenken & Luigi Marengo & Marco Valente, 1999. "Interdependencies, nearly-decomposability and adaption," CEEL Working Papers 9903, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
  6. Kauffman, Stuart & Lobo, Jose & Macready, William G., 2000. "Optimal search on a technology landscape," Journal of Economic Behavior & Organization, Elsevier, vol. 43(2), pages 141-166, October.
  7. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914.
  8. Bennett Levitan & Stuart Kauffman, 1995. "Adaptive Walks with Noisy Fitness Measurements," Working Papers 95-04-039, Santa Fe Institute.
  9. Stuart Kauffman & William G. Macready & Emily Dickinson, 1994. "Divide to Coordinate: Coevolutionary Problem Solving," Working Papers 94-06-031, Santa Fe Institute.
  10. Jose Lobo & William G. Macready, 1999. "Landscapes: A Natural Extension of Search Theory," Working Papers 99-05-037, Santa Fe Institute.
  11. Vishwanath, Tara, 1992. "Parallel Search for the Best Alternative," Economic Theory, Springer, vol. 2(4), pages 495-507, October.
  12. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Valente Houhannisian, 2004. "Modeling Directod Local Search Strategies on Technology Landscapes and Breadth," Quaderni DISA 091, Department of Computer and Management Sciences, University of Trento, Italy, revised 17 Jun 2008.
  2. Karén Hovhannisian & Marco Valente, 2005. "Modeling Directed Local Search Strategies on Technology," Computational Economics 0507001, EconWPA.
  3. Karén Hovhannissian & Marco Valente, 2004. "Modeling Directed Local Search Strategies on Technology Landscapes: Depth and Breadth," ROCK Working Papers 028, Department of Computer and Management Sciences, University of Trento, Italy, revised 17 Jun 2008.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpco:0405009

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.