|
Jaap de Jonge, Editor, Netherlands
|
Most writers treat Cognitive Bias as a negative phenomenon that explains why humans (managers) are incapable of making rational decisions. In their view cognitive bias is frustrating rational decision-making.
Dan Ariely, Prof at Duke University, author of '', in last HBR is introducing another view and proposes to replace rational economics (based on the assumption that humans fundamentally make rational decisions and that the market's invisible hand serves as a trustworthy corrective to imbalance) by behavioral economics (based on the assumption that humans fundamentally make irrational decisions and are motivated by the invisible hand of unconscious cognitive biases).
In behavioral economics, customers, employees, managers and stakeholders are assumed emotional, myopic and easily confused and distracted. Experimenting with things such as bonus schedules, product pricing, consumer choices and employee behavior are crucial to predict behavior. Ariely warns that the BE process is time (...) Read more? Sign up for free
|
Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.
Sign up for free Log in
|
| |
|
Colin Downey
|
|
Human Emotions
Behaviours stem from the physical state of wanting (...)
|
| |
|
Gonca Telli Yamamoto
|
|
Economically People are Rational in General
It is important to take care of cognitions for man (...)
|
| |
|
Judy Nelson
|
|
Behavioral Economics
I've been thinking a lot about the BE article sinc (...)
|
| |
|
Gill
|
|
Not Economically Rational
If you read Dan's book and his experiments, you wi (...)
|
| |
|
Ronald Gross
|
|
Cognitive Behavior in Money Management
I believe most members will find "The Seven Deadly (...)
|
| |
|
Richard Cushing
|
|
Going for the Gain
Dan Ariely should read Ludwig Von Mises' HUMAN ACT (...)
|
| |
|
Zen
|
|
Cognitive Capacity
There is a new trending of awareness in this arena (...)
|
|
|
|
|
Special Interest Group Leader
|
|
|
|
|
|
|
|
|
