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Expectational bottlenecks and the emerging of new organizational forms

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  • Bogliacino, Francesco
  • Rampa, Giorgio

Abstract

In this article we discuss the dynamics of organizational change when agents have heterogeneous initial conjectures and do learn. In this framework, conjectural equilibrium is defined as a steady state of the learning process, and all the adjustment occurs in disequilibrium. We discuss the properties of the system under different “rationality” assumptions, and using well-known learning algorithms. We prove analytically that multiplicity of equilibria, and failure of good organizational routines, cannot be ruled out: better, they are fairly probable. Stability is a crucial matter: it is shown to depend on initial conjectures. Finally, learning does not necessarily select the best.

Suggested Citation

  • Bogliacino, Francesco & Rampa, Giorgio, 2014. "Expectational bottlenecks and the emerging of new organizational forms," Structural Change and Economic Dynamics, Elsevier, vol. 29(C), pages 28-39.
    • Handle: RePEc:eee:streco:v:29:y:2014:i:c:p:28-39
    DOI: 10.1016/j.strueco.2013.01.001
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    More about this item

    Keywords

    Heterogeneity; Learning; Theory of the firm;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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