SIMULATION-BASED INFLUENCE OF ASPIRATION MODELS ON FIRMS’ BEHAVIOR
SIMULATION-BASED INFLUENCE OF ASPIRATION MODELS ON FIRMS’ BEHAVIOR

Author(s): Michal Jirásek
Subject(s): Business Economy / Management
Published by: Masarykova univerzita nakladatelství
Keywords: aspiration models; firm behavior; simulation-based testing;
Summary/Abstract: The performance feedback process is according to the behavioral theory of the firm one of key factors influencing firms’ decisions on strategies and their changes. The research contained in this paper compares influences of four classical aspiration models (historical, social, mixed and switching) on firms’ strategy choices. Using NetLogo simulation software, a simplemodel of firms’ behavior is constructed and used for analysis of these effects. The role of the social aspiration model is highlighted as it partially differs from the other aspiration models analyzed. This points out to the need to put an attention to a firm’s reference group of competitors. The paper itself in general advocates the use of simulation for behavioral research as a useful, yet supplemental, tool of researchers.

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