ABSTRACT

This chapter focuses on the modeling and computational analysis of interaction processes in organizations. It examines the dynamic processes resulting from reactive behavior, where the agents in an organization react to each others' actions. The chapter develops a framework for the formal analysis of dynamic reactive behavior and carries out simulations to study the effects of different behavioral patterns within this framework. Best-response behavior (BRD) was analyzed within the framework. As the approach developed here demonstrates the benefits of an interdisciplinary approach to problems of organization theory, it is timely and useful to explore the issue in depth. The model that is presented for analyzing reactive behavior tries to capture the basic elements of the interaction process. One may think that relaxed BRD, bounded BRD, and asynchronous BRD are simplified versions of the BRD, which always calls for exact optimization.