Decision Choices And Conditions - Publications - Faculty & Research - Harvard Business School

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September 2014
Article

The Interrelationships Between Brand and Channel Choice

By: Scott Neslin, Kenshuk Jerath, Anand Bodapati, Eric T. Bradlow, John A. Deighton, Sonja Gensler, Leonard Lee, Elisa Montaguti, Rahul Telang, Raj Venkatesan, Peter C. Verhoef and Z. John Zhang

We propose a framework for the joint study of the consumer's decision of where to buy and what to buy. The framework is rooted in utility theory where the utility is for a particular channel/brand combination. The framework contains firm actions, the consumer search... View Details

Keywords: Brand Choice; Channel Choice; Utility Theory; Marketing; Decision Choices and Conditions; Consumer Behavior; Learning; Electronics Industry; Auto Industry; Information Technology Industry; Telecommunications Industry; Aerospace Industry

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February 2022
Module Note

Behavioral Economics and Choice Architecture

By: John Beshears

This module note for instructors describes a module on the design of choice architecture solutions to organizational problems. View Details

Keywords: Behavioral Economics; Choice Architecture; Organizations; Problems and Challenges; Decision Choices and Conditions; Economics

January 2014 (Revised November 2015)
Background Note

Rational Choice and Managerial Decision-Making

This note discusses Herbert Simon's notion of bounded rationality: how managers may sometimes make suboptimal choices because of their limited ability to access or process information. View Details

Keywords: Rational Choice; Bounded Rationality; Satisficing; Herbert Simon; Agenda-setting; Choice; Alternatives; Decision Making; Decision Choices and Conditions; Decisions; Judgments

January 2006
Tutorial

Alternative Choice Decisions Analysis

By: David F. Hawkins, V.G. Narayanan, Jacob Cohen and Michele Jurgens

Shows how managers use information on costs and revenues to decide between possible alternative courses of action. Presents two case examples of differential cost analysis. The first, a make or buy decision, examines two alternatives in which only costs vary. The... View Details

Keywords: Cost; Profit; Revenue; Information; Management Analysis, Tools, and Techniques; Problems and Challenges; Conflict and Resolution

Article

Choice Architects Reveal a Bias Toward Positivity and Certainty

By: David P. Daniels and Julian Zlatev

Biases influence important decisions, but little is known about whether and how individuals try to exploit others’ biases in strategic interactions. Choice architects—that is, people who present choices to others—must often decide between presenting choice sets with... View Details

Keywords: Nudges; Biases; Strategic Decision Making; Social Influence; Choice Architects; Choice Architecture; Reflection Effect; Certainty Effect; Loss Aversion; Decision Making; Risk and Uncertainty; Power and Influence

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2017
Article

Blunted Ambiguity Aversion During Cost-Benefit Decisions in Antisocial Individuals

By: Joshua W. Buckholtz, Uma R. Karmarkar, Shengxuan Ye, Grace M. Brennan and Arielle Baskin-Sommers

Antisocial behavior is often assumed to reflect aberrant risk processing. However, many of the most significant forms of antisocial behavior, including crime, reflect the outcomes of decisions made under conditions of ambiguity rather than risk. While risk and... View Details

Keywords: Ambiguity; Neuroscience; Neuroeconomics; Choice; Psychology; Decision Choice And Uncertainty; Behavior; Decision Choices and Conditions; Cost vs Benefits; Health Disorders

June 2020
Article

The Isolated Choice Effect and Its Implications for Gender Diversity in Organizations

By: Edward H. Chang, Erika L. Kirgios, Aneesh Rai and Katherine L. Milkman

We highlight a feature of personnel selection decisions that can influence the gender diversity of groups and teams. Specifically, we show that people are less likely to choose candidates whose gender would increase group diversity when making personnel selections in... View Details

Keywords: Behavior And Behavioral Decision Making; Organizational Studies; Decision Analysis; Economics; Decision Making; Behavior; Analysis; Organizations; Diversity; Gender

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2023
Working Paper

Cognitive Uncertainty in Intertemporal Choice

By: Benjamin Enke and Thomas Graeber

This paper studies the relevance of cognitive uncertainty – subjective uncertainty over one's utility-maximizing action – for understanding and predicting intertemporal choice. The main idea is that when people are cognitively noisy, such as when a decision is complex,... View Details

Keywords: Cognitive Uncertainty; Intertemporal Choice; Cognition and Thinking; Complexity; Decision Choices and Conditions

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February 2006
Teaching Note

Alternative Choice Decision Analysis (TN)

By: David F. Hawkins, V.G. Narayanan, Michele Jurgens and Jacob Cohen

Keywords: Decision Making

2022
Book

Decision Leadership: Empowering Others to Make Better Choices

By: Don A. Moore and Max H. Bazerman

When we think of leaders, we often imagine lone, inspirational figures lauded for their behaviors, attributes, and personal decisions, and leadership books often reinforce that view. However, this approach ignores a leader’s mission to empower others. Applying decades... View Details

Keywords: Empowerment Leadership; Leadership; Employees; Decision Making; Management Style

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January 2017
Article

Should You Sleep on It? The Effects of Overnight Sleep on Subjective Preference-based Choice

By: Uma R. Karmarkar, Baba Shiv and Rebecca M.C. Spencer

Conventional wisdom and studies of unconscious processing suggest that sleeping on a choice may improve decision-making. Though sleep has been shown to benefit several cognitive tasks, including problem solving, its impact on everyday choices remains unclear. Here we... View Details

Keywords: Decision Making; Choice; Sleep; Choice Sets; Confidence; Consumer Psychology; Consumer Preferences; Decision Choices and Conditions; Consumer Behavior

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2024
Working Paper

Consumer Choice and Corporate Bankruptcy

By: Samuel Antill and Megan Hunter

We estimate the indirect costs of corporate bankruptcy associated with lost customers. In incentivized experiments, randomly informing consumers about a firm’s Chapter 11 reorganization lowers their willingness to pay for the firm’s products by 18-35%. Up to 48% of... View Details

Keywords: Consumer Choice; Bankruptcy; Financial Distress; Structural Estimation; Experimental Economics; Hertz; Insolvency and Bankruptcy; Consumer Behavior

01 Nov 2007
Conference Presentation

Decision Amnesia: Motivated Forgetting of Difficult Choices

By: Zoe Chance and Michael I. Norton

May 2021
Article

Choice Architecture in Physician–patient Communication: A Mixed-methods Assessment of Physicians' Competency

By: J. Hart, K. Yadav, S. Szymanski, A. Summer, A. Tannenbaum, J. Zlatev, D. Daniels and S.D. Halpern

Background: Clinicians’ use of choice architecture, or how they present options, systematically influences the choices made by patients and their surrogate decision makers. However, clinicians may incompletely understand this influence.... View Details

Keywords: Choice Architecture; Health Care and Treatment; Interpersonal Communication; Decision Choices and Conditions; Competency and Skills

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2017
Working Paper

The 4 Minds of the Customer: A Framework for Understanding and Applying the Science of Decision Making

By: Ryan Hamilton and Uma R. Karmarkar

Scientists have spent decades creating powerful and detailed descriptions of how people make decisions. Unfortunately, many of these theories make contradictory predictions and are difficult to understand and implement. We introduce the 4 Minds framework as a practical... View Details

Keywords: Consumer Choice; Market Research; Decision Making Process; Decision; Marketing Research; Consumer Behavior; Decision Choices and Conditions; Marketing; Decision Making; Segmentation; Research

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January 2010
Journal Article

A Choice Prediction Competition: Choices from Experience and from Description

By: Ido Erev, Eyal Ert, Alvin E. Roth, Ernan E. Haruvy, Stefan Herzog, Robin Hau, Ralph Hertwig, Terrence Steward, Robert West and Christian Lebiere

Erev, Ert, and Roth organized three choice prediction competitions focused on three related choice tasks: one-shot decisions from description (decisions under risk), one-shot decisions from experience, and repeated decisions from experience. Each competition was based... View Details

Keywords: Experience and Expertise; Decision Choices and Conditions; Forecasting and Prediction; Mathematical Methods; Risk and Uncertainty; Competition

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Research Summary

Social Choice and Voting Rules

By: Jerry R. Green

This research program is based on the idea that good voting systems should take into account the frequency with which different choice problems arise. Traditional social choice theory requires properties over a fixed domain of choice problems but does not offer the... View Details

October 2019 (Revised January 2020)
Supplement

Dulcie Madden (B)—A Difficult Choice

By: Shikhar Ghosh and Shweta Bagai

This is part of a three-case series that follows Dulcie Madden's journey as a founder over five years. Case (A) is about managing growth and cash flow; Case (B) is about the exit decision and conditions on a sale; Case (C) shows Madden dealing with adversity and the... View Details

1982
Article

Low Involvement Decision Processes: The Importance of Choice Tactics

By: Rohit Deshpandé, Wayne D. Hoyer and Scott Jeffries

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June 2012 (Revised December 2017)
Technical Note

Strategy and Strategic Decisions

By: Eric Van den Steen

This note introduces a framework for formulating strategy that helps a manager identify which decisions are strategic—and thus which decisions to focus on (both when developing strategy and when executing it)—and that provides a practical test for whether a particular... View Details

Keywords: Formulating Strategy; Strategic Theory; Strategy Test; Strategic Analysis; Strategy; Theory; Strategic Planning

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