Will behavioral research on managerial decision making generalize to managers?

Article Abstract:

The decision making of managers, graduate students and undergraduates are compared to determine if results for generalized studies on the subject are applicable to managers. The comparative study, which considered actual decision cost, effectiveness of methodology and logical behavior, indicate that managers and graduate students are basically similar in their methods and effectiveness. On the other hand, undergraduates made more costly decisions, used less effective methods and were more erratic in making decisions.

Practice, Students, Executives

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Mortal managers and long-term goals: an impossibility result

Article Abstract:

Management short-sightedness inevitably exists, according to an infinitely repeated agency model adjusted to include risk aversion, moral agents, time dependency and contract competition. The degree of the myopia depends, however, upon the interaction between managers and owners or stockholders and can be affected by the postponement of the managers' wages. The model and solution are presented, and properties of optimal contracts are outlined with assumptions and proofs.

Analysis, Management, Management contracts

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Ambiguity and underwriter decision processes

Article Abstract:

Research is presented demonstrating the impact of ambiguity and risk on the insurance pricing decisions of underwriters. Premiums are shown to be substantially higher where there is uncertainty about potential loss levels and where the probability of an event occurring is ambiguous.

Psychological aspects, Risk assessment, Economic aspects, Insurance industry, Ambiguity

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