Evolutionary Behavioral Economics: Essays on Adaptive Rationality in Complex Environments

Against the theoretical background of evolutionary behavioral economics, this project analyzes bounded rationality and adaptive behaviour in organizational settings characterized by complexity and persistent uncertainty. In particular, drawing upon the standard NK model, two laboratory experiments investigate individual and collective decision-making in combinatorial problems of resource allocation featuring multiple dimensions and various levels of complexity. In the first study, investment horizons of different length are employed to induce a near or distant future temporal orientation, in order to assess the effects of complexity and time horizon on performance and search behaviour, examine the presence of a temporal midpoint heuristic, and inspect the moderating effects of deadline proximity on the performance-risk relationship. This is relevant for organizational science because the passage of time is essential to articulate many strategic practices, such as assessing progress, scheduling and coordinating task-related activities, discerning the processual dynamics of how these activities emerge, develop, and terminate, or interpreting retrospected, current, and anticipated events. A greater or lesser amount of time reflects then a greater or lesser provision of resources, thereby representing a constraint that can greatly affect the ability to maintain a competitive advantage or ensure organizational survival. In the second study, the accuracy of the imitative process is varied to induce a flawless or flawed information diffusion system and, congruently, an efficient or inefficient communication network, in order to assess the effects of complexity and parallel problem-solving on autonomous search behaviour, clarify the core drivers of imitative behaviour, control for the degree of strategic diversity under different communication networks, and evaluate individual as well as collective performance conditional to the interaction between the levels of complexity and the modalities of parallel problem-solving. This is relevant for organizational science because imitating the practices of high-performing actors is one of the key strategies employed by organizations to solve complex problems and improve their performance, thereby representing a major part of the competitive process. The project is intended to contribute grounding individual and collective behaviour in a more psychologically and socially informed decision-making, with a view to further the research agenda of behavioral strategy and sustain the paradigm shift towards an evolutionary-complexity approach to real economic structures.