Managers as Paranoid Strategists: A Study of the Nature, Causes and Consequences of Competitive Paranoia

Prior research alludes to the possibility that managers often suffer from a biased pattern of competitive cognition,such that they systematically assess that their competitors will make more threatening moves than thecompetitors are actually making. However, few studies shed light on the true nature, causes, and performanceconsequences of such a cognitive paranoia. This paper attempts to fill the knowledge gap. Through a strategysimulation...