Judgment in Managerial Decision Making, 7th Edition
August 2008, ©2009
This book includes information that is useful for anyone seeking further information on improving his or her judgment and decision making. Throughout, you’ll find numerous hands-on decision exercises and examples from the author's extensive executive training experience that will help you improve the quality of your managerial judgment.
The Anatomy of Decisions.
System 1 and System 2 Thinking.
The Bounds of Human Attention and Rationality.
Introduction to Judgmental Heuristics.
An Outline of Things to Come.
Chapter 2: Common Biases.
Biases Emanating from the Availability Heuristic.
Biases Emanating from the Representativeness Heuristic.
Biases Emanating from the Confirmation Heuristic.
Integration and Commentary.
Chapter 3: Bounded Awareness.
Focalism and the Focusing Illusion.
Bounded Awareness in Groups.
Bounded Awareness in Strategic Settings.
Bounded Awareness in Auctions.
Chapter 4: Framing and the Reversals of Preference.
Framing and the Irrationality of the Sum of Our Choices.
We Like Certainty, Even Pseudocertainty.
The Framing and the Overselling of Insurance.
What's It Worth to You?
The Value We Place on What We Own.
Do No Harm, the Omission Bias, and the Status Quo.
Joint Versus Separate Preference Reversals.
Conclusion and Integration.
Chapter 5: Motivational and Emotional Influences on Decision Making.
When Emotion and Cognition Collide.
Emotional Influences on Decision Making.
Chapter 6: The Escalation of Commitment.
The Unilateral Escalation Paradigm.
The Competitive Escalation Paradigm.
Why Does Escalation Occur?
Chapter 7: Fairness and Ethics in Decision Making.
Perceptions of Fairness.
Chapter 8: Common Investment Mistakes.
The Psychology of Poor Investment Decisions.
Chapter 9: Making Rational Decisions in Negotiation.
A Decision-Analytic Approach to Negotiations.
Claiming Value in Negotiation.
Creating Value in Negotiation.
The Tools of Value Creation.
Summary and Critique.
Chapter 10: Negotiator Cognition.
The Mythical Fixed Pie of Negotiations.
The Framing of Negotiator Judgment.
Escalation of Conflict.
Overestimating Your Value in Negotiation.
Self-Serving Biases in Negotiation.
Anchoring in Negotiations.
Chapter 11: Improving Decision Making.
Strategy 1: Use Decision-Analysis Tools.
Strategy 2: Acquire Expertise.
Strategy 3: Debias Your Judgment.
Strategy 4: Reason Analogically.
Strategy 5: Take an Outsider's View.
Strategy 6: Understand Biases in Others.
Don Moore is an Associate Professor of Organizational Behavior at Carnegie Mellon University¹s Tepper School of Business, and holder of the Carnegie Bosch Faculty Development chair. Don is also formally affiliated with CMU's Department of Social and Decision Sciences, and he is the founding director of the Center for Behavioral Decision Research. He received his Ph.D. in Organization Behavior from Northwestern University.
- Extensively updated material throughout the book
- Presentation of the latest evidence on the nature of when individuals are most and least confident
- NEW coverage of ethics and decision-making
- More examples and decision problems to highlight key psychological principles
- Up-to-date thoughts for improving the quality of your decisions
- Includes Test Bank on the instructor companion site www.wiley.com/college/bazerman
- Respected author team – Max H. Bazerman is one of the leading theorists in negotiation and decision-making. New co-author, Don Moore, is currently an Associate Professor of Organizational Behavior of Carnegie Mellon University’s Tepper School of Business and founding director of the Center for Behavioral Decision Research.
- Opportunity for the reader to examine their individual judgment – The first six chapters include this self-assessment, while following Chapter Seven, the book moves to a variety of interpersonal contexts that affect judgment.
- Examines judgment in a variety of organizational contexts, and provides practical strategies for changing your decision-making processes and improving these processes so that they become part of your permanent behavior.
- Numerous hands-on decision exercises and examples from the authors' extensive executive training experience.