The neuro-scientific foundations of the exploration-exploitation dilemma

What are the origins of the ability to continuously explore novel domains of activity while at the same time exploiting the current knowledge base with increasing efficacy? The conflicting objectives of exploration and exploitation compete for scarce resources, among which managerial attention is possibly the most critical. This paper integrates recent findings on the neuromodulation of attention to provide a foundational step in understanding how the mind of the manager handles the exploration-exploitation dilemma. Also, this paper proposes several possible ways to combine research in neuroscience, psychology and management to advance our knowledge of the microfoundations of managerial decision making.