Judgment in Managerial Decision Making / Edition 7

Judgment in Managerial Decision Making / Edition 7

by Max H. Bazerman, Don A. Moore
     
 

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ISBN-10: 0470049456

ISBN-13: 9780470049457

Pub. Date: 08/18/2008

Publisher: Wiley

The insights you need to become a better decision-maker
Become a better decision-maker
How to overcome your biases and make better decisions
The tools to become a better decision-maker and a better manager

When faced with a decision, we all believe we’re weighing the facts objectively and making rational, thoughtful

Overview

The insights you need to become a better decision-maker
Become a better decision-maker
How to overcome your biases and make better decisions
The tools to become a better decision-maker and a better manager

When faced with a decision, we all believe we’re weighing the facts objectively and making rational, thoughtful decisions. In fact, science tells us that in situations requiring careful judgment, every individual is influenced by his or her own biases to some extent. Drawing on the very latest behavioral decision research, Judgment in Managerial Decision Making, Seventh Edition examines judgment in a variety of managerial contexts and provides important insights that can help you make better managerial decisions.

Widely-recognized by practitioners and academics in fields ranging from behavioral finance to public policy, psychology, and economics, this Seventh Edition of the classic text:

  • Discusses the motivational and emotional influences that effect decision making
  • Delves into the fairness and ethics involved in the decision-making process
  • Integrates numerous hands-on decision exercises and examples that will help readers enhance the quality of their managerial judgment
  • Provides tips and techniques on how to make rational decisions during negotiations
  • Presents seven critical strategies for improving decision making

For psychologists, the book outlines a systematic framework for using psychological findings to improve judgment. For the economist, the book suggests a critique of the clas­sic economic model of decision making. Most of all, however, for every manager or financial decision maker, this book offers a clear path to better decisions.

Product Details

ISBN-13:
9780470049457
Publisher:
Wiley
Publication date:
08/18/2008
Edition description:
Older Edition
Pages:
230
Product dimensions:
6.10(w) x 9.10(h) x 0.60(d)

Table of Contents


Introduction to Managerial Decision Making     1
The Anatomy of Decisions     1
System 1 and System 2 Thinking     3
The Bounds of Human Rationality     4
Introduction to Judgmental Heuristics     6
An Outline of Things to Come     10
Common Biases     13
Biases Emanating from the Availability Heuristic     18
Biases Emanating from the Representativeness Heuristic     21
Biases Emanating from the Confirmation Heuristic     28
Integration and Commentary     40
Bounded Awareness     42
Inattentional Blindness     46
Change Blindness     47
Focalism and the Focusing Illusion     48
Bounded Awareness in Groups     50
Bounded Awareness in Strategic Settings     51
Bounded Awareness in Auctions     59
Discussion     61
Framing and the Reversal of Preferences     62
Framing and the Irrationality of the Sum of Our Choices     65
We Like Certainty, Even Pseudocertainty     67
The Framing and the Overselling of Insurance     70
What's It Worth to You?     71
The Value We Place on What We Own     72
MentalAccounting     74
Do No Harm, the Omission Bias, and the Status Quo     76
Rebate/Bonus Framing     78
Joint Versus Separate Preference Reversals     79
Conclusion and Integration     82
Motivational and Emotional Influences on Decision Making     84
When Emotion and Cognition Collide     84
Positive Illusions     90
Self-Serving Reasoning     94
Emotional Influences on Decision Making     96
Summary     99
The Escalation of Commitment     101
The Unilateral Escalation Paradigm     103
The Competitive Escalation Paradigm     105
Why Does Escalation Occur?     108
Integration     112
Fairness and Ethics in Decision Making     113
Perceptions of Fairness     113
Bounded Ethicality     122
Conclusion     134
Common Investment Mistakes     136
The Psychology of Poor Investment Decisions     138
Active Trading     145
Action Steps     147
Making Rational Decisions in Negotiations     151
A Decision-Analytic Approach to Negotiations     152
Claiming Value in Negotiation      155
Creating Value in Negotiation     156
The Tools of Value Creation     161
Summary and Critique     166
Negotiator Cognition     168
The Mythical Fixed Pie of Negotiation     168
The Framing of Negotiator Judgment     169
Escalation of Conflict     171
Overestimating Your Value in Negotiation     172
Self-Serving Biases in Negotiation     174
Anchoring in Negotiations     176
Conclusions     178
Improving Decision Making     179
Use Decision-Analysis Tools     181
Acquire Expertise     186
Debias Your Judgment     189
Reason Analogically     191
Take an Outsider's View     193
Understand Biases in Others     195
Conclusion     198
References     200
Index     223

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