This is a recreation of the computational model from March 1991 model* of exploration and exploitation.
The model is based on the description from the paper itself (the relevant quotes are included in the code with a reference to page on which they appear in the original manuscript), but also on an article by Simon Rodan (2005) and especially the note by Michael Christensen (2015), both of which describe the missing steps necessary to recreate Figure 1 from the original paper. Attempting recreation of the model from the 1991 paper alone is not possible as the original text is missing important information. I provided specific notes in those places where the original code differs from the paper. I also wanted to thank Dong Nghi Pham, a doctoral student at ESSEC, who helped with reviewing the code.
The objective of this exercise was to reproduce Figure 1, but the code can also be used to reproduce additional results from the paper, like impact of employee turnover or environmental turbulence.
The code has been tested on Anaconda Python 3.7
- March JG. 1991. Exploration and Exploitation in Organizational Learning, Organization Science. 2(1):71-87