|In business, we can sometimes make decisions analytically and "optimally." In other situations, because of data limitations and/or computational difficulties, we must use an intuitive approach. This course teaches you how to make decisions in both types of situations. With respect to the first type of situation, you will learn analytical tools and how to use them to reach optimal solutions. With respect to the second type of situation, you will learn about the errors "normal people" often commit when they make decisions intuitively. You will also learn how to overcome these errors and thereby become smarter than most “normal people”.
This course has two goals: descriptive and prescriptive. The descriptive goal is to understand how people actually make decisions. The prescriptive goal is to help students become better decision makers. Through readings, demonstrations, and cases, students understand why managers are susceptible to certain decision making biases and therefore, often make less than optimal decisions. The course concludes by exploring the managerial implications of these biases for consumer, organizational, and financial decision making.