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Behavioral models of managerial decision-making

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Abstract

This paper reviews the literature that applies behavioral economic models to managerial decisions. It organizes the literature into research that focuses on alternative utility functions and research that focuses on non-equilibrium models. Generally, behavioral models have seen less application to manager decisions than to consumer decisions and therefore there are many opportunities to develop new theoretical models, new laboratory experiments, and new field applications. The application of these models to field data is particularly underdeveloped.

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Authors and Affiliations

  1. Rotman School of Management, University of Toronto, Toronto, ON, Canada

    Avi Goldfarb, Alberto Galasso & Tanjim Hossain

  2. Haas School of Business, University of California, Berkeley, CA, USA

    Teck-Hua Ho & Ming Hsu

  3. Fuqua School of Business, Duke University, Durham, NC, USA

    Wilfred Amaldoss

  4. Department of Economics, Texas A&M University, College Station, TX, USA

    Alexander L. Brown

  5. School of Information, University of Michigan, Ann Arbor, MI, USA

    Yan Chen

  6. Carlson School of Management, University of Minnesota, Minneapolis, MN, USA

    Tony Haitao Cui

  7. Wisconsin School of Business, University of Wisconsin-Madison, Madison, WI, USA

    Noah Lim

  8. Eller College of Management, University of Arizona, Tucson, AZ, USA

    Mo Xiao

  9. Marshall School of Business, University of Southern California, Los Angeles, CA, USA

    Botao Yang

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  1. Avi Goldfarb
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  2. Teck-Hua Ho
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  3. Wilfred Amaldoss
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  4. Alexander L. Brown
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  5. Yan Chen
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  6. Tony Haitao Cui
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  7. Alberto Galasso
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  8. Tanjim Hossain
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  9. Ming Hsu
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  10. Noah Lim
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  11. Mo Xiao
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  12. Botao Yang
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Correspondence to Avi Goldfarb.

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Goldfarb, A., Ho, TH., Amaldoss, W. et al. Behavioral models of managerial decision-making. Mark Lett 23, 405–421 (2012). https://doi.org/10.1007/s11002-012-9183-4

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