Publications

2009
Working Paper

A Decision-making Perspective to Negotiation: A Review of the Past and a Look into the Future

By: Chia-Jung Tsay and Max H. Bazerman

Through the decision-analytic approach to negotiations, the past quarter century has seen the development of a better dialog between the descriptive and the prescriptive, as well as a burgeoning interest in the field for both academics and practitioners. Researchers... View Details

Keywords: Decision Making; Ethics; Negotiation; Behavior; Cognition and Thinking; Emotions

01 Nov 2016
First Look

First Look - November 1, 2016

Behavioral Decision Making The Impact of 'Display-Set' Options on Decision-Making By: Karmarkar, Uma R. Abstract—The way a choice set is constructed can have a significant influence on how individuals perceive and evaluate their options... View Details

Keywords: Sean Silverthorne

January 4, 2019
Article

How Companies Can Balance Social Impact and Financial Goals

By: Marya L. Besharov, Wendy K. Smith and Michael Tushman

It’s notoriously difficult for a business to manage two separate-but-equal goals—making money and creating social value at the same time, for example, or managing an existing business at the same time that you invent a new one. Most attempts at managing these... View Details

Keywords: Goals and Objectives; Management; Corporate Social Responsibility and Impact; Profit; Decision Making

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09 Jul 2020
News

It’s Time to Reset Decision-Making in Your Organization

May 2022
Supplement

Third Point in 2020: Growth Is Where the Value Is? (B)

By: Robin Greenwood and Denise Han

In early May 2020, Daniel Loeb’s team at Third Point was evaluating a potential growth opportunity in the Walt Disney Company and whether investor activism might play a role. Battered by the effects of COVID-19, the company’s stock had initially tumbled to $86 and then... View Details

Keywords: Growth; Equity; Disney; Value; Economics; Finance; Investment; Strategy; Management; Investment Activism; Investment Return; Growth and Development; North America

July 2019
Article

Optimal Capital Structure and Bankruptcy Choice: Dynamic Bargaining vs Liquidation

By: Samuel Antill and Steven R. Grenadier

We model a firm’s optimal capital structure decision in a framework in which it may later choose to enter either Chapter 11 reorganization or Chapter 7 liquidation. Creditors anticipate equityholders’ ex-post reorganization incentives and price them into the ex-ante... View Details

Keywords: Default; Dynamic Bargaining; Capital Structure; Insolvency and Bankruptcy; Mathematical Methods

September 2018
Article

Aggregation of Consumer Ratings: An Application to Yelp.com

By: Weijia Dai, Ginger Jin, Jungmin Lee and Michael Luca

Because consumer reviews leverage the wisdom of the crowd, the way in which they are aggregated is a central decision faced by platforms. We explore this "rating aggregation problem" and offer a structural approach to solving it, allowing for (1) reviewers to vary in... View Details

Keywords: User Generated Content; Crowdsourcing; Yelp; Social and Collaborative Networks; Information; Internet and the Web; Learning; Mathematical Methods; E-commerce

October 2014
Supplement

Honeywell and the Great Recession: The Economic Recovery (B)

By: Sandra J. Sucher and Susan J. Winterberg

Five years after the Great Recession, Honeywell's CEO Dave Cote and his executive team reflect on the choices they made to manage costs and earnings forecasts during that uncertain time. They discuss which cost cutting measures they decided to take and their personal... View Details

Keywords: Layoffs; Furloughs; Downsizing; Work Sharing; Short Time Work; Recessions; Earnings Forecast; Job Cuts and Outsourcing; Cost Management; Executive Compensation; Crisis Management; Financial Crisis; Manufacturing Industry

August 2014 (Revised November 2015)
Case

Rick's Dilemma

By: Arthur I. Segel, Charles F. Wu, Siddharth Yog and Ben Eppler

In 2014, Rick is serving as a trustee for a large family trust whose principle asset is a plot of prime real estate in the Upper East Side of Manhattan. The land is currently subject to a ground lease which pays $4.6 million annually, with resets every 20 years at 4.5%... View Details

Keywords: Real Estate; New York Property; Appraisal Methods; Valuation Methodologies; Property; Finance; Real Estate Industry; New York (city, NY); United States

March 2003 (Revised March 2004)
Case

Noodles & Company

Aaron Kennedy has successfully grown Noodles & Co. from a single global noodle shop to a chain of 58 restaurants spanning six states in seven years. In the face of increasing competition, Kennedy has plans to roll out 240 new stores in the next four years. He must... View Details

Keywords: Competition; Expansion; Business Growth and Maturation; Organizational Culture; Franchise Ownership; Growth and Development Strategy; Retail Industry; Food and Beverage Industry; United States

Video

Should You Go to Graduate School? Factors to Consider Before Deciding

October 2009
Article

Shaping Online Consumer Choice by Partitioning the Web

By: Jolie M. Martin and Michael I. Norton

This research explores how partitioning attributes in online search interfaces changes the valuations of those attributes-and impacts subsequent choice-such that attributes that are displayed as separate categories tend to receive greater decision weight than... View Details

Keywords: Decision Choices and Conditions; Information Management; Demand and Consumers; Research; Internet and the Web; Valuation

Web

Entrepreneurship - Faculty & Research

the probabilities of success are low, extremely skewed, and unknowable until an investment is made. At a macro level, experimentation by new firms underlies the Schumpeterian notion of creative destruction. However, at a micro level, investment and continuation View Details

26 Jul 2016
First Look

July 26, 2016

Organizational Behavior and Human Decision Processes Overcoming the Outcome Bias: Making Intentions Matter By: Sezer, Ovul, Ting Zhang, Francesca Gino, and Max Bazerman Abstract—People often make the well-documented mistake of paying too... View Details

Keywords: Sean Silverthorne

2012
Chapter

Leading in Crises: Observations on the Political and Decision-Making Dimensions of Response

By: Herman B. Leonard and Arnold M. Howitt

Emergency response organizations, as we have argued in earlier writing, must deal with both "routine emergencies" (dangerous events, perhaps extremely severe, that are routine because they can be anticipated and prepared for) and "true crises" (which, because of... View Details

Keywords: Strategy; Leadership; Decision Choices and Conditions; Crisis Management; Government and Politics

Article

Effects of Description of Options on Parental Perinatal Decision-Making

By: Marlyse F. Haward, Leslie K. John, John M. Lorenz and Baruch Fischhoff

Objective: To examine whether parents' delivery room management decisions for extremely preterm infants are influenced by (a) the degree of detail with which options-comfort care (CC) or intensive care (IC)-are presented or (b) their order of presentation. Methods: 309... View Details

Keywords: Decision Making; Values and Beliefs; Personal Characteristics; Attitudes; Motivation and Incentives; Family and Family Relationships; Health Care and Treatment

2024
Working Paper

Charting (and Updating) the Path: A Bayesian Perspective on Entrepreneurial Learning

By: Joshua L. Krieger

This chapter explores two distinct modes of entrepreneurial learning: assessing venture viability and choosing between alternative development paths. It introduces a framework for decomposing venture viability into technological feasibility, commercial potential and... View Details

Keywords: Decision Making; Entrepreneurship; Growth and Development Strategy; Learning

February 2016 (Revised August 2021)
Case

Martin Luther King and the Struggle for Black Voting Rights

By: David Moss and Dean Grodzins

In January 1965, Rev. Martin Luther King, Jr., the most prominent leader of the civil rights movement in the United States, launched a campaign of civil disobedience in Selma, Alabama, to bring national attention to disenfranchisement of black voters in the South. On... View Details

Keywords: Rights; Voting; Race; Government and Politics; Conflict and Resolution; Leadership; History; Alabama