Behavioral Economics and Behavioral Operations Management
- Winter 23 (B)
Behavioral Economics and Behavioral Operations Management --- In recent years, there has been practical and theoretical interests in behavioral study. Behavioral economics combines lessons from psychology and economics to study how people process information and make decisions as employees, managers and consumers. Behavioral operations management applies those insights to managing business operations. The course will provide an understanding of how people's decisions deviate from "optimal" (rational and selfish) choices, as well as the consequences of such deviations in management and the marketplace. This course is devoted to understanding the nature, causes and implication of these limitations. We will then consider how (a) managers and policy makers can intervene to improve decision making and outcomes and (b) how markets are organized around exploiting of remedying deviations from rational decision make. At the end of the course, students should understand the decision making process more thoroughly and be in a position to become a better manager.