Commitment, Learning, and Alliance Performance: A Formal Analysis Using an Agent-Based Network Formation Model
Author(s)Anjos, Fernando; Reagans, Ray Eugene
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Current theoretical arguments highlight a dilemma faced by actors who either adopt a weak or strong commitment strategy for managing their alliances and partnerships. Actors who pursue a weak commitment strategy|i.e. immediately abandon current partners when a more pro table alternative is presented|are more likely to identify the most rewarding alliances. On the other hand, actors who enact a strong commitment approach are more likely to take advantage of whatever opportunities can be found in existing partnerships. Using agent-based modeling, we show that actors who adopt a moderate commitment strategy overcome this dilemma and outperform actors who adopt either weak or strong commitment approaches. We also show that avoiding this dilemma rests on experiencing a related tradeo : moderately-committed actors sacri ce short-term performance for the superior knowledge and information that allows them to eventually do better.
DepartmentSloan School of Management
Journal of Mathematical Sociology
Anjos, Fernando, and Ray Reagans. “Commitment, Learning, and Alliance Performance: A Formal Analysis Using an Agent-Based Network Formation Model.” The Journal of Mathematical Sociology 37.1 (2013): 1–23.
Author's final manuscript