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Some groups endure longer, are more stable, and are better able than other groups to incorporate new members or ideas without losing their distinctiveness. I present a simple model of individual behavior based on the thesis that interaction leads to shared knowledge and that relative shared knowlege leads to interaction. Using this model I examine the structural and cultural bases of group stability. Groups that are stable in the short run do not necessarily retain their distinctiveness in the long run as new members enter or new ideas are discovered. A Theory of Group Stability Consider two hypothetical high-tech consulting companies-- Fairview and Taliesin-- that specialize in designing medical information systems. Over the years, both companies have gained considerable expertise. Despite these similarities, however, the companies are quite different. Fairview was founded by six men, all graduates of BL Tech with degrees in business. The current members of the company get along well-- they frequently hold Monday evening meetings and tend to have a unified perspective on how to develop systems. Taliesin resulted from a
Kathleen M. Carley (Sat,) studied this question.