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Understanding the exploration–exploitation dilemma: An fMRI study of attention control and decision-making performance

Authors

  • Daniella Laureiro-Martínez,

    1. Department of Management, Technology and Economics, ETH Zurich, Zürich, Switzerland
    2. School of Management, Universidad de los Andes, Bogotá, Colombia
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  • Stefano Brusoni,

    Corresponding author
    1. Department of Management, Technology and Economics, ETH Zurich, Zürich, Switzerland
    • Correspondence to: Stefano Brusoni, Weinbergstr. 56/58, 8092 Zuerich, Switzerland. E-mail: sbrusoni@ethz.ch

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  • Nicola Canessa,

    1. Center for Cognitive Neuroscience & CERMAC, Vita-Salute San Raffaele University, Milano, Italy
    2. Division of Neuroscience, San Raffaele Scientific Institute, Milano, Italy
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  • Maurizio Zollo

    1. Department of Management and Technology, Center for Research on Innovation, Organization and Strategy (CRIOS), Bocconi University, Milano, Italy
    2. Department of Strategy and Innovation, WU Vienna School of Economics and Business, Vienna, Austria
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Abstract

This paper studies the cognitive processes that enable decision makers to switch between exploitation and exploration. We use functional magnetic resonance imaging (fMRI) in a sample of expert decision makers to make two main contributions. First, we identify and contrast the specific brain regions and cognitive processes associated with exploitation and exploration decisions. Exploitation activates regions associated with reward seeking, which track and evaluate the value of current choices, while exploration relies on regions associated with attentional control, tracking the value of alternative choices. Second, we propose and test the idea that stronger activation of the brain circuits related to attentional control allows individuals to achieve better decision-making performance as a result. We discuss the implications of these results for strategic management research and practice. Copyright © 2013 John Wiley & Sons, Ltd

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