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Debating Rationality: Nonrational Aspects of Organizational Decision Making

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Overview

"Debating Rationality is a terrific collection of essays written by an obviously first rate set of scholars. Several recent books have attempted to make similar points, but this volume pushes the ideas in new directions, rather than simply restating what are now established themes."—Roderick M. Kramer, co-author of Trust in OrganizationsDecision makers strive to be rational. Traditionally, rational decisions maximize an appropriate return. The contributors to this book challenge the common assumption that good decisions must be rational in this economic sense. They emphasize that the decision-making process is influenced by social, organizational, and psychological considerations as well as by economic concerns. Relationships, time pressure, external demands for specific types of performance, contractual expectations, human biases, and reactions to unfair treatment alter the decision-making context and the resulting decision outcomes.
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Editorial Reviews

From the Publisher
"Several fine scholars provide interesting reviews of differing literatures."—Academy of Management Review

"The bottom line is that this fine book represents an achievement by all of its authors as well as an invitation to move away from traditional, singular models of economic rationality."—Administrative Science Quarterly

"Debating Rationality is a terrific collection of essays written by an obviously first rate set of scholars. Several recent books have attempted to make similar points, but this volume pushes the ideas in new directions, rather than simply restating what are now established themes."—Roderick M. Kramer, coauthor of Trust in Organizations

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Product Details

Table of Contents

Acknowledgements
Abbreviations
Introduction
Beneath the Social Science Debate: Economic and Social Notions of Rationality 1
1 Prescriptive Models in Organizational Decision Making 21
2 Game Theory and Garbage Cans: An Introduction to the Economics of Internal Organization 36
3 Behavioral Economics and Nonrational Organizational Decision Making 53
4 Can Negotiators Outperform Game Theory? 78
5 Playing the Maintenance Game: How Mental Models Drive Organizational Decisions 99
6 Organizational Contracting: A "Rational" Exchange? 125
7 Transaction Cost Economics and Organization Theory 155
8 Toward a Psychology of Contingent Work 195
9 Bonded Rationality: The Rationality of Everyday Decision Making in a Social Context 219
10 Endogenous Preferences: A Structural Approach 239
References 248
Contributors 276
Index 281
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