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Managerial cognition, sunk costs, and the evolution of industry structure

Authors :
Johnson, Douglas R.
Hoopes, David G.
Source :
Strategic Management Journal. Oct, 2003, Vol. 24 Issue 10, 1057-1068
Publication Year :
2003

Abstract

Research indicates that companies develop biased competitive environment estimates due to their concentration on nearby competitors, which is driven by bounded rationality and competitive pressure. It is concluded that stable performance and strategic heterogeneity will therefore emerge within a given industry, but this will decrease as costs of change and competitive pressures decrease.

Subjects

Subjects :
Investments -- Comparative analysis
Knowledge management -- Comparative analysis
Competition (Economics) -- Models
Resource allocation -- Comparative analysis
Knowledge management
Business

Details

Language :
English
ISSN :
01432095
Volume :
24
Issue :
10
Database :
Gale General OneFile
Journal :
Strategic Management Journal
Publication Type :
Academic Journal
Accession number :
edsgcl.108650793

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Authors Abstract Subjects Details