No hay comentarios.

COURSE NAME : BEHAVIORAL ISSUES IN MANAGEMENT
TRANSLATION : Temas de Comportamiento en la Administracion
ACRONYM : EAM450
CREDITS : 10 UC
MODULE : 03/ Trimestral
REQUIREMENTS : None
RESTRICTIONS : 50901, 53101, 52101, 51301, 50902, 302
TYPE : Elective
FORMAT : Lecture
GRADING : Standard (Grades 1.0 to 7.0)


I. COURSE OVERVIEW

This course explores the behavioral side of management issues. Building on the literature joining economics and management with psychology, the course re-explores some of the assumptions we use to describe the behavior of managers and consumers to evidence that our decisions are not always rational.

II. EDUCATIONAL OBJECTIVES

- Understand behavioral issues in management.
- Give examples of basic concepts, principles and values that constitute behavioral issues.
- Analyze how firms and markets react to behavioural issues.
- Describe situations where biases affect decision-making as individuals, consumers, workers and managers.
- Explore and evaluate cases from diverse fields of management such as organizational behavior, human resources, strategy, pricing and finance.

III. COURSE CONTENTS

1. Definition of Rationality
2. Hyperbolic discounting, the observation that consumers have a bias for present relative to future gratification.
3. Reference-dependent preferences.
4. Social preferences in general, and the most relevant ways people?s utilities are interdependent.
5. Several possible mistakes people make whenever making statistical computations.
6. Famous biases like the hot hand and gamblers? fallacies.
7. Overconfidence: the belief that we are better than we really are, with respect to ourselves and to others.
8. Evidence showing that consumers have limited capacity to process information and firms know this well.

IV. TEACHING METHOD AND APPROACH

- Lectures
- Readings
- Class discussion
- Take-home assignments

V. GRADING

- In class participation 20%
- Brief take-home applications 20%
- Final-class application 30%
- Final Exam 30%

VI. REQUIRED TEXT AND COURSE MATERIALS

Madatory Readings:

1. Ted O?Donoghue and Matthew Rabin. ?Doing It Now or Later?. American Economic Review. 1999.
2. Shane Frederick; George Loewenstein and Ted O?Donoghue. ?Time Discounting and Time Preference: A Critical Review?. Journal of Economic Literature. 2002.
3. Stephan Meier and Charles Sprenger. ?Present-Biased Preferences and Credit Card Borrowing?. American Economic Journal: Applied Economics. 2010.
4. Nava Ashraf, Dean Karlan and Wesley Yin. ?Tying Odysseus to the mast: Evidence from a commitment savings product in the Philippines? The Quarterly Journal of Economics, 2006.
5. Daniel Kahneman and Amos Tversky. ?Prospect Theory: An Analysis of Decision Under Risk?. Econometrica. 1979.
6. Botond Koszegi and Matthew Rabin. ?A Model of Reference-Dependent Preferences?. Quarterly Journal of Economics. 2006.
7. Ernest Fher and Lorenze Goette. ?Do Workers Work More When Wages are High? Evidence From a Randomized Field Experiment?. American Economic Review. 2007.
8. Daniel Kahneman, Jack Knetsch and Richerd Thaler. ?Fairness as a constraint on profit seeking: Entitlements in the market?. American Economic Review. 1986.
9. Ernst Fher and Simon Gatcher. ?Fairness and Retaliation: The Economics of Reciprocity?. Journal of Economic Perspectives. 2000.
10. Gary Charness and Matthew Rabin. ?Understanding social preferences with simple tests?. Quarterly Journal of Economics. 2002.
11. Daniel Kahneman and Amos Tversky. ?Belief in the law of small numbers.? Psychological bulletin, 1971.
12. Matthew rabin and Dimitri Vayanos. ?The gambler's and hot-hand fallacies: Theory and applications?. The Review of Economic Studies, 2010
13. M. Billet and Yiming Quian. ?Are overconfident CEOs born or made? Evidence of self-attribution bias from frequent acquirers? Management Science. 2008
14. Ulrike Malmendier and George Tate. ?Who makes acquisitions? CEO overconfidence and the market's reaction? Journal of Financial Economics. 2008.
15. Don Moore. ?The trouble with overconfidence?. Psychological review, 2008.
16. Tanjim Hossain and John Morgan. ?...Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay?. Advances in Economic Analysis & Policy, 2006
17. Raj Chetty, Adam Looney and Kory Kroft. ?Salience and taxation: Theory and evidence?. American Economic Review. 2009.
18. Stefano DellaVigna and Joshua Pollet. ?Investor inattention and Friday earnings announcements?. The Journal of Finance, 2009.