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Judgment in Managerial Decision Making, 8th Edition

Book Description

Behavioral decision research provides many important insights into managerial behavior. From negotiation to investment decisions, the authors weave behavioral decision research into the organizational realm by examining judgment in a variety of managerial contexts.

Embedded with the latest research and theories, Managerial Decision Making 8th Edition gives students the opportunity to understand their own decision-making tendencies, learn strategies for overcoming cognitive biases, and become better decision makers.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Contents
  5. Chapter One: Introduction to Managerial Decision Making
    1. THE ANATOMY OF DECISIONS
    2. SYSTEM 1 AND SYSTEM 2 THINKING
    3. THE BOUNDS OF HUMAN ATTENTION AND RATIONALITY
    4. INTRODUCTION TO JUDGMENTAL HEURISTICS
    5. AN OUTLINE OF THINGS TO COME
  6. Chapter Two: Overconfidence
    1. THE MOTHER OF ALL BIASES
    2. OVERPRECISION
    3. OVERESTIMATION
    4. OVERPLACEMENT
    5. LET'S HEAR IT FOR WELL-CALIBRATED DECISION MAKING
  7. Chapter Three: Common Biases
    1. BIASES EMANATING FROM THE AVAILABILITY HEURISTIC
    2. BIASES EMANATING FROM THE REPRESENTATIVENESS HEURISTIC
    3. BIASES EMANATING FROM THE CONFIRMATION HEURISTIC
    4. INTEGRATION AND COMMENTARY
  8. Chapter Four: Bounded Awareness
    1. INATTENTIONAL BLINDNESS
    2. CHANGE BLINDNESS
    3. FOCALISM AND THE FOCUSING ILLUSION
    4. BOUNDED AWARENESS IN GROUPS
    5. BOUNDED AWARENESS IN STRATEGIC SETTINGS
    6. DISCUSSION
  9. Chapter Five: Framing and the Reversal of Preferences
    1. FRAMING AND THE IRRATIONALITY OF THE SUM OF OUR CHOICES
    2. WE LIKE CERTAINTY, EVEN PSEUDOCERTAINTY
    3. FRAMING AND THE OVERSELLING OF INSURANCE
    4. WHAT'S IT WORTH TO YOU?
    5. THE VALUE WE PLACE ON WHAT WE OWN
    6. MENTAL ACCOUNTING
    7. REBATE/BONUS FRAMING
    8. JOINT-VERSUS-SEPARATE PREFERENCE REVERSALS
    9. CONCLUSION AND INTEGRATION
  10. Chapter Six: Motivational and Emotional Influences on Decision Making
    1. WHEN EMOTION AND COGNITION COLLIDE
    2. SELF-SERVING REASONING
    3. EMOTIONAL INFLUENCES ON DECISION MAKING
    4. SUMMARY
  11. Chapter Seven: The Escalation of Commitment
    1. THE UNILATERAL ESCALATION PARADIGM
    2. THE COMPETITIVE ESCALATION PARADIGM
    3. WHY DOES ESCALATION OCCUR?
    4. INTEGRATION
  12. Chapter Eight: Fairness and Ethics in Decision Making
    1. PERCEPTIONS OF FAIRNESS
    2. WHEN WE RESIST “UNFAIR” ULTIMATUMS
    3. WHEN WE ARE CONCERNED ABOUT THE OUTCOMES OF OTHERS
    4. WHY DO FAIRNESS JUDGMENTS MATTER?
    5. BOUNDED ETHICALITY
    6. OVERCLAIMING CREDIT
    7. IN-GROUP FAVORITISM
    8. IMPLICIT ATTITUDES
    9. INDIRECTLY UNETHICAL BEHAVIOR
    10. WHEN VALUES SEEM SACRED
    11. THE PSYCHOLOGY OF CONFLICTS OF INTEREST
    12. CONCLUSION
  13. Chapter Nine: Common Investment Mistakes
    1. THE PSYCHOLOGY OF POOR INVESTMENT DECISIONS
    2. ACTIVE TRADING
    3. ACTION STEPS
  14. Chapter Ten: Making Rational Decisions in Negotiations
    1. A DECISION-ANALYTIC APPROACH TO NEGOTIATIONS
    2. CLAIMING VALUE IN NEGOTIATION
    3. CREATING VALUE IN NEGOTIATION
    4. THE TOOLS OF VALUE CREATION
    5. SUMMARY AND CRITIQUE
  15. Chapter Eleven: Negotiator Cognition
    1. THE MYTHICAL FIXED PIE OF NEGOTIATION
    2. THE FRAMING OF NEGOTIATOR JUDGMENT
    3. ESCALATION OF CONFLICT
    4. OVERESTIMATING YOUR VALUE IN NEGOTIATION
    5. SELF-SERVING BIASES IN NEGOTIATION
    6. ANCHORING IN NEGOTIATION
    7. CONCLUSIONS
  16. Chapter Twelve: Improving Decision Making
    1. STRATEGY 1: USE DECISION-ANALYSIS TOOLS
    2. STRATEGY 2: ACQUIRE EXPERTISE
    3. STRATEGY 3: DEBIAS YOUR JUDGMENT
    4. STRATEGY 4: REASON ANALOGICALLY
    5. STRATEGY 5: TAKE AN OUTSIDER'S VIEW
    6. STRATEGY 6: UNDERSTAND BIASES IN OTHERS
    7. STRATEGY 7: NUDGE WISER AND MORE ETHICAL DECISIONS
    8. CONCLUSION
  17. References
  18. Index