behavioral decision making: biases, heuristics and errors.

EVALUATION CRITERIA
Final evaluation will be based on (1) class participation (presence, level of preparation and
contribution to the discussion of simulations, experiments, and readings), (2) an Application
Report that applies one or more ideas from behavioral decision making/behavioral economics
to a real-world business context of your choosing, and (3) performance on a final exam.
• Class participation 10%
• Application Report 40%
• Exam 50%
BIBLIOGRAPHY
The following are the books from which chapters in the course readings are drawn.
Baron, J. (2008). Thinking and deciding (4th ed.). New York: Cambridge University Press.
Bazerman, M. H., & Moore, D. (2009). Judgment in managerial decision making (7th ed.).
Hoboken, NJ: J. Wiley & Sons.
Belsky, G., & Gilovich, T. (2010). Why smart people make big money mistakes...and how to
correct them: Lessons from the life-changing science of behavioral economics (Simon &
Schuster ed.). New York: Simon & Schuster Paperbacks.
Davidson, R., Goldsmith H. & Scherer K. (Eds.), Handbook of Affective Science. New York:
Oxford University Press.
Fung, K. (2010). Numbers rule your world: The hidden influence of probability and statistics
on everything you do. New York: McGraw-Hill.
Gilovich, T., Griffin, D. W., & Kahneman, D. (2002). Heuristics and biases: The psychology of
intuitive judgment. Cambridge: Cambridge University Press.
Glimcher, P. W. (2008). Neuroeconomics: Decision making and the brain. London: Academic
Press.
Hardman, D. (2009). Judgment and decision making. Malden, MA: Wiley-Blackwell.
Hastie, R., & Dawes, R. M. (2009). Rational choice in an uncertain world: The psychology of
judgment and decision making (2 nd ). Thousand Oask: Sage Publications.
Kahneman, D., Slovic, P., & Tversky, A. (1982). Judgment under uncertainty: heuristics and
biases. Cambridge ; New York: Cambridge University Press.
Kahneman, D., & Tversky, A. (2000). Choices, values, and frames. Cambridge: Cambridge
University Press.
Plous, S. (1993). The psychology of judgment and decision making. Philadelphia: Temple
University Press.
BOOKS OF INTEREST
Comprehensive, More Academic and Behavioral Economics
Baron, J. (2008). Thinking and deciding (4th ed.). New York: Cambridge University Press.
Beach, L. R., & Connolly, T. (2005). The Psychology of Decision Making: People in
Organizations (2 nd ). Thousand Oaks: Sage Publications.
Gilovich, T., Griffin, D. W., & Kahneman, D. (2002). Heuristics and biases: The psychology of
intuitive judgment. Cambridge: Cambridge University Press.
Glimcher, P. W. (2008). Neuroeconomics: Decision Making and the Brain. London: Academic.
Hastie, R., & Dawes, R. M. (2009). Rational choice in an uncertain world: The psychology of
judgment and decision making (2 nd ). Thousand Oask: Sage Publications.
Hogarth, R. (1987). Judgment and Choice (2 nd ). New York: J. Wiley.
Kahneman, D., Slovic, P., & Tversky, A. (1982). Judgment under uncertainty: heuristics and
biases. Cambridge ; New York: Cambridge University Press.
Kahneman, D., & Tversky, A. (2000). Choices, values, and frames. Cambridge: Cambridge
University Press.
March, J. G., & Heath, C. (2009). A Primer on Decision Making: How Decisions Happen. New
York: Free Press.
Newell, B. R., Lagnado, D. A., & Shanks, D. R. (2007). Straight Choices: The Psychology of
Decision Making. New York: Psychology Press.
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