Decision Choices and Conditions
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- 03 Jun 2019
- Working Paper Summaries
Memory and Representativeness
We explore the foundations of individuals’ probabilistic judgments, looking to better understand the sources of systematic errors. We conduct a laboratory experiment where participants view abstract images and are then asked to recall what they saw. We find evidence that interference in episodic memory contributes to biased probabilistic judgments.
- 02 May 2019
- Sharpening Your Skills
How To Ask Better Questions
To make the best decisions, managers must ask the right questions. This collection of past studies by Harvard Business School researchers will help you gather the critical information needed to prepare for action. Open for comment; Comment(s) posted.
- 27 Feb 2019
- Research & Ideas
The Hidden Cost of a Product Recall
Product failures create managerial challenges for companies but market opportunities for competitors, says Ariel Dora Stern. The stakes have only grown higher. Open for comment; Comment(s) posted.
- 27 Feb 2019
- Working Paper Summaries
Judgment Aggregation in Creative Production: Evidence from the Movie Industry
Selecting early-stage ideas in creative industries is challenging because consumer taste is hard to predict and the quantity to sift through is large. Using The Black List that ranks scripts annually based on nominations from film executives, this study shows that aggregating expert opinions helps reduce quality uncertainty and can influence high-budget production.
- 12 Nov 2018
- Research & Ideas
'Always On' Isn't Always Best for Team Decision-Making
Is it possible for teams to communicate too frequently? Research by Ethan Bernstein and colleagues suggests that groups that meet less often may be better at problem-solving. Open for comment; Comment(s) posted.
- 19 Sep 2018
- Sharpening Your Skills
Say Again? Uncommon Advice for Common Business Problems
Sometimes the right answer is far from obvious. Learn why an introvert may be the best choice to lead your team, taking a pay cut might make you a better manager, and why you should not trust your gut when the pressure is on. Open for comment; Comment(s) posted.
- 09 Feb 2018
- Working Paper Summaries
Developing Novel Drugs
This paper contributes to our understanding of how financing constraints affect the direction of innovation in drug development. The authors develop a new measure of drug novelty based on molecular characteristics, and explore the tradeoffs involved in decisions to develop more novel therapies. Open for comment; Comment(s) posted.
- 08 Jan 2018
- Working Paper Summaries
Come Together: Firm Boundaries and Delegation
The study develops a simple model and provides new data to examine the relationship between vertical integration and delegation of decision-making, two critical aspects of a firm organizational design that are typically studied in isolation. The results show that delegation and vertical integration are positively correlated.
- 11 Sep 2017
- Research & Ideas
Why Employers Favor Men
Why are women discriminated against in hiring decisions? Research by Katherine Coffman, Christine Exley, and Muriel Niederle finds the answer is more subtle than expected. Open for comment; Comment(s) posted.
- 14 Jun 2017
- Working Paper Summaries
Minimizing Justified Envy in School Choice: The Design of New Orleans' OneApp
TCC (Top Trading Cycles) and DA (deferred acceptance) are the two main algorithms for priority-based resource allocation. In 2012, the New Orleans school system tried to use TCC for school assignments, but dropped it after one year. The authors of this paper compared data from New Orleans and Boston in order to review designs and algorithms for better school assignment systems.
- 05 Jul 2016
- Working Paper Summaries
The Impact of Campus Scandals on College Applications
This paper explores the prevalence and impact of negative incidents at top United States colleges covered in the media, looking at data from 2001 through 2013. During this period, the authors identified 124 widely covered scandals. Scandals lead to large reductions in applications; a scandal covered in a long-form article has roughly the same impact on applications as a 10-ranking drop in the influential US News and World Report College Rankings.
- 01 Jun 2015
- Research & Ideas
The Surprising Benefits of Oversharing
In a social media culture that encourages sharing of embarrassing information, revealing too much can benefit individuals but hurt businesses. New research papers from Leslie John and Michael Luca help explain why. Open for comment; 10 Comment(s) posted.
- 25 Jul 2013
- Research & Ideas
Why Unqualified Candidates Get Hired Anyway
Why do businesses evaluate candidates solely on past job performance, failing to consider the job's difficulty? Why do university admissions officers focus on high GPAs, discounting influence of easy grading standards? Francesca Gino and colleagues investigate the phenomenon of the "fundamental attribution error." Closed for comment; 24 Comment(s) posted.
- 21 Dec 2011
- Research & Ideas
The Most Common Strategy Mistakes
In the book, Understanding Michael Porter: The Essential Guide to Competition and Strategy, Joan Magretta distills Porter's core concepts and frameworks into a concise guide for business practitioners. In this excerpt, Porter discusses common strategy mistakes. Closed for comment; 36 Comment(s) posted.
- 20 Oct 2011
- Research & Ideas
Getting the Marketing Mix Right
Marketers have a wide array of selling tools at their disposal, but lack an effective method for predicting their success. Associate Professor Thomas J. Steenburgh and collaborators offer a new model for guiding their marketing investments. Key concepts include: Discrete choice models commonly used to evaluate marketing strategies often provide misleading results, leaving managers with the inability to accurately measure how they can get the best bang for their buck. A new model could help managers figure out which marketing efforts work best, and therefore decide which strategies to invest in. Open for comment; 2 Comment(s) posted.
- 02 Dec 2010
- What Do You Think?
Making Right Choices: Art or Science?
Summing Up Is choice an art or science? Jim Heskett's readers wonder whether the question is the right one to ask. (Online forum has closed; next forum opens January 6.) Closed for comment; 46 Comment(s) posted.
- 26 Oct 2009
- Lessons from the Classroom
The New Deal: Negotiauctions
Whether negotiating to purchase a company or a house, dealmaking is becoming more complex. Harvard Business School professor Guhan Subramanian sees a new form arising, part negotiation, part auction. Call it the negotiauction. Here's how to play the game. Key concepts include: In a negotiauction, the rules are never perfectly pinned down, which creates both opportunities and challenges. The three common negotiauction moves are set-up, rearranging, and shut-down. Negotiauctions help in the current economic downturn by providing a more nuanced mechanism and better outcome for both parties. Closed for comment; 0 Comment(s) posted.
- 11 Jan 2008
- Working Paper Summaries
See No Evil: When We Overlook Other People’s Unethical Behavior
Even good people sometimes act unethically without their own awareness. This paper explores psychological processes as they affect the ethical perception of others' behavior, and concludes with implications for organizations. First, there is a tendency for people to overlook unethical behavior in others when recognizing such behavior would harm them. Second, people might readily ignore unethical behavior when others have an agent do their dirty work for them. Third, gradual moral decay leads people to grow comfortable with behavior to which they would otherwise object. Fourth, the tendency to value outcomes over processes can lead us to accept unethical processes for far too long. Key concepts include: Most people value ethical decisions and behavior, and strive to be good. Yet psychological processes sometimes lead them to engage in questionable behaviors that are inconsistent with their own values and beliefs. It is common to fail to notice or act on information when dealing with ethically relevant decisions. Organizational leaders must understand these processes and make the structural changes necessary to reduce the harmful effects of human psychological and ethical limitations. Closed for comment; 0 Comment(s) posted.
- 03 Jan 2008
- What Do You Think?
Does Judgment Trump Experience?
It's a question as relevant for business as for the U.S. presidential campaign, says HBS professor Jim Heskett. If "judgment capability" is a function of experience, what kind of experience is important? Does plenty of experience really improve judgment? Online forum now CLOSED. Closed for comment; 111 Comment(s) posted.
Can These Business Students Motivate Londoners to Do the Right Thing?
In the Harvard Business School course Behavioral Insights, students work in the UK with psychology experts to understand what motivates consumers and workers. What they learn can help businesses of all types, says Michael Luca. Open for comment; Comment(s) posted.