14033: Behavioral Perspectives into the Economics of Strategy

Economic theories have long provided powerful frameworks for understanding strategic decision-making, particularly in areas such as competition, resource allocation, and value creation. However, these frameworks often rely on simplifying assumptions of rationality and utility-maximization, which can fail to fully capture the complexities of real-world decision-making. Expanding these foundational assumptions by incorporating behavioral perspectives allows for a deeper exploration of the cognitive, relational, and organizational factors that shape strategic choices. Behavioral insights provide a richer lens for understanding phenomena such as how managerial cognition and bounded rationality shape resource allocation, how relational dynamics inform contract design, and how perceptions of uncertainty, luck, and randomness impact decision-making. These perspectives are particularly valuable in contexts where traditional economic models struggle to account for the role of cognitive and relational factors in shaping outcomes, such as the complexity of governance mechanisms, the dynamics of contractual relationships, or the influence of managerial perceptions and bounded rationality on resource allocation and strategic decisions. By addressing these dimensions, researchers can develop a more nuanced understanding of how firms achieve competitive advantage, manage transactions, and adapt to dynamic environments. This Paper Development Workshop (PDW) aims to explore these intersections, offering scholars an opportunity to bridge behavioral insights and economic theories of strategy, fostering a richer and more comprehensive approach to strategic decision-making. It is designed to advance research that integrates behavioral and economic frameworks, encouraging both theoretical innovation and practical relevance. By addressing these complexities, the workshop seeks to inspire impactful scholarship that reflects the multifaceted realities of firm behavior and equips practitioners with actionable insights into decision-making in complex business environments. This holistic perspective challenges conventional assumptions, advancing our understanding of strategy in dynamic and uncertain contexts. The 2.5-hour session will follow a three-part format. In the first part, six leading scholars—J.P. Eggers, Dan Elfenbein, Nicolai Foss, Michael Leiblein, Chengwei Liu, and Libby Weber—will present their insights on integrating behavioral perspectives into traditional economics-based strategies, including The Behavioral Theory of the Firm, Property Rights Theory, Real Options, Resource-Based View, and Transaction Cost Economics. The second part will feature a semi-structured panel discussion, providing opportunities for interactive engagement. Finally, participants will engage in roundtable discussions to refine their research ideas with input from panelists and peers. Prospective participants will submit a brief description of their research ideas for discussion during the workshop.

This 2.5-hour PDW will follow a three-part format. In the first part, six leading scholars—J.P. Eggers, Dan Elfenbein, Nicolai Foss, Michael Leiblein, Chengwei Liu, and Libby Weber—will present their insights on integrating behavioral perspectives into traditional economics-based strategies, including The Behavioral Theory of the Firm, Property Rights Theory, Real Options, Resource-Based View, and Transaction Cost Economics. The second part will feature a semi-structured panel discussion, providing opportunities for interactive engagement. Finally, participants will engage in roundtable discussions to refine their research ideas with input from panelists and peers. Prospective participants need to submit a brief description of their research for discussion during the workshop. To participate in this roundtable, you need to submit this form prior to Monday June 30, 2025: https://forms.gle/DpTbmB8fK1zvV9aQ6 Please reach out to the organizers if you have any questions. Best, Sandip Bisui (sbisui@purdue.edu), Jessica Jeesoo Kim (jeesoo.k@uci.edu)