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Organization Studies
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Towards an Understanding of Cognitive Coordination: Theoretical Developments and Empirical Illustrations

Nicolai Foss

Copenhagen Business School, Denmark and Norwegian School of Economics and Business Administration, Norway, njf.smg{at}cbs.dk

Mark Lorenzen

Mark Lorenzen Copenhagen Business School, Denmark, mark{at}cbs.dk

The cognitive dimension of institutions has been comparatively neglected in social science research. In particular, economists have concentrated on how institutions provide incentives. However, institutions also influence behaviours by influencing beliefs and expectations that help agents to overcome coordination problems. We explore various aspects of how institutions may align agents’ beliefs, concentrating on the role of analogies in interactive decision making, and how analogies grow from experience. We illustrate our reasoning by an empirical example.

Key Words: cognition • coordination • analogies • game theory • industrial clusters

This version was published on November 1, 2009

Organization Studies, Vol. 30, No. 11, 1201-1226 (2009)
DOI: 10.1177/0170840609337956
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