Business Case Studies & Business Publications

Studies in Managerial Decision Making

Clyman, Dana R., S...

Case

Studies in Managerial Decision Making

Clyman, Dana R.; Smokevitch, Jennifer

QA-0494 | Published September 4, 1996 | 2 pages Case

Collection: Darden School of Business

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This case and its companion, "Studies in Managerial Judgment" (QA-0493), consist of exercises that demonstrate several cognitive biases that are likely to affect judgment in decision making. They complement a curriculum focused on the normative approach to decision analysis by demonstrating real-world examples of how decision making can be skewed. The cases cover four of the main categories of heuristics: representativeness, availability, anchoring, and framing and are intended for students who have developed expertise with decision-tree analysis. (A teaching note is available.)

The class should accomplish the following objectives: ? Question the way in which a choice, situation, or decision is presented ? Examine what it means to be risk-seeking, risk-averse, or risk-neutral ? Recast the decision in a bias-neutral manner ? Identify when and why decisions will be skewed optimistically or pessimistically ? Improve objective decision making through recognition and understanding of these biases ? Create additional decision-analysis tools that will be applied in subsequent normative decision-analysis cases and enrich future class discussions