Mastering Management With Behavioral Economics

Behavioral Economics is a fascinating field that combines insights from psychology and economics to understand and predict human behavior in decision-making processes. It delves into the intricacies of why people make certain choices, often deviating from traditional economic theories that assume individuals are consistently rational and always act in their best interest. This subchapter aims to provide an overview of Behavioral Economics, shedding light on its fundamental concepts and principles. Whether you are a student, a business professional, or simply curious about human behavior, understanding Behavioral Economics can offer valuable insights into how individuals and societies make decisions. At its core, Behavioral Economics recognizes that humans are prone to biases, cognitive limitations, and emotions that influence their choices. It challenges the traditional economic assumption that individuals always act rationally by exploring the various factors that impact decision-making, such as social influences, heuristics, and framing effects. By studying Behavioral Economics, you will gain a deeper understanding of why people often make seemingly irrational choices. For instance, why do we tend to overestimate our abilities? Why do we prefer avoiding losses rather than acquiring equivalent gains? These questions and more will be answered as we explore the fascinating world of behavioral economics. Throughout this subchapter, we will delve into key theories and experiments that have shaped the field of Behavioral Economics. We will explore concepts like prospect theory, which explains how people evaluate and make decisions under uncertainty, and the endowment effect, which describes our tendency to value objects we own more than identical objects that we do not own. Additionally, we will discuss the practical applications of Behavioral Economics in various domains, such as marketing, finance, and public policy. By understanding the underlying mechanisms that drive human behavior, you will be better equipped to design effective strategies, influence consumer choices, and drive positive change.

A comprehensive review of behavioral operations management that puts the focus on new and trending research in the field The Handbook of Behavioral Operations offers a comprehensive resource that fills the gap in the behavioral operations management literature. This vital text highlights best practices in behavioral operations research and identifies the most current research directions and their applications. A volume in the Wiley Series in Operations Research and Management Science, this book contains contributions from an international panel of scholars from a wide variety of backgrounds who are conducting behavioral research. The handbook provides succinct tutorials on common methods used to conduct behavioral research, serves as a resource for current topics in behavioral operations research, and as a guide to the use of new research methods. The authors review the fundamental theories and offer frameworks from a psychological, systems dynamics, and behavioral economic standpoint. They provide a crucial grounding for behavioral operations as well as an entry point for new areas of behavioral research. The handbook also presents a variety of behavioral operations applications that focus on specific areas of study and includes a survey of current and future research needs. This important resource: Contains a summary of the methodological foundations and in-depth treatment of research best practices in behavioral research. Provides a comprehensive review of the research conducted over the past two decades in behavioral operations, including such classic topics as inventory management, supply chain contracting, forecasting, and competitive sourcing. Covers a wide-range of current topics and applications including supply chain risk, responsible and sustainable supply chain, health care operations, culture and trust. Connects existing bodies of behavioral operations literature with related fields, including psychology and economics. Provides a vision for future behavioral research in operations. Written for academicians within the operations management community as well as for behavioral researchers, The Handbook of Behavioral Operations offers a comprehensive resource for the study of how individuals make decisions in an operational context with contributions from experts in the field.

Behavioral Operations Management investigates new developments around behavioral components -- "people issues"--In operations management (OM). While these "people issues" are not new, OM has not dealt with them in a serious or consistent manner until the last 10 years or so. What is new is the emergence of a set of methods and structured areas of study that allow researchers to study these issues within the OM paradigm. The authors provide a definition of Behavioral OM and survey a number of relevant behavioral issues and their applications to the existing OM research. Finally, the authors propose that culture studies in OM may represent a promising direction of future behavioral OM research

How Behavioral Economics Influences Management Decision-Making: A New Paradigm critically reexamines the management function in 21st century workplaces. The book seeks to examine and explain the real-world behaviors of employees and acknowledge the human nature that binds us all together and how to appeal to these characteristics in order to help organizations prosper. It explores well-observed but rarely understood features of employee cognition and irrationality, challenging the dominant discourse and offering an alternative to gain greater competitive advantage in today's complex markets. It also provides an effective new framework on the best ways to develop relevant management skills as they pertain to hiring, performance management, change management, employee engagement, and goal setting. As the knowledge economy continues to grow, the social bonds within companies will prove to be a key differentiation to deliver on the next big idea. Developing productive decisions with staff in the talent-driven global economy increasingly requires the development of "intrinsic" meaning in work, a human-centered work-place culture, and human-focused working practices. This book tackles these topics in comprehensive and efficient detail. Provides a framework to simply and effectively apply behavioral principles in organizations of any size Focuses on agent motivations and behavior and how they directly impact talent management in the knowledge economy Highlights empirical studies, detailing the impact of heuristics on hiring, performance management, change management, employee engagement, and goal-setting decisions

Interdisciplinary factors in the modern business realm have significant impacts on economic agents within organizations. These behavioral influences affect multiple decision-making processes on both the individual and organizational levels. Applied Behavioral Economics Research and Trends provides a comprehensive examination of the social, psychological, and emotional factors in organizational behavior and economic decision-making and how these issues provide a deeper understanding of various economic behaviors. Highlighting relevant coverage across a range of topics, such as consumer behavior, inter-temporal choices, and self-employment, this book is ideally designed for managers, researchers, professionals, graduate students, and practitioners seeking scholarly material on the implications of behavioral economics across numerous industries.

In this book, we discuss Behavioral economics as the modern approach to economics compared to classical economics. We talk about Psychology and human behavior affecting the field of Economics. We further discuss the various theories that come under this field, the Prospect theory, measurement principles, and heuristics and biases. Behavioral management is the modernized version of traditional management. We aim to further the understanding of individuals on these topics.

Winner of the Nobel Prize in Economics Get ready to change the way you think about economics. Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans—predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth—and change the way we think about economics, ourselves, and our world. Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio, selling basketball tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by economists. In other words, we misbehave. More importantly, our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make better decisions in our lives, our businesses, and our governments. Coupling recent discoveries in human psychology with a practical understanding of incentives and market behavior, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioral economic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV game shows, the NFL draft, and businesses like Uber. Laced with antic stories of Thaler’s spirited battles with the bastions of traditional economic thinking, Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policy makers are both profound and entertaining. Shortlisted for the Financial Times & McKinsey Business Book of the Year Award