Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 08 July 2020

Abstract and Keywords

This article discusses the implications of behavioral decision theory to managerial decision making by looking at the contributions made and the challenges its findings pose in attempting to contribute more to decision making in and by organizations. This article does not survey behavioral decision theory because extensive reviews of the literature exist that describe the major findings of this research field. The heuristics and biases paradigm shows that in estimating probabilities and frequencies under uncertainty, people use heuristics (rules of thumb) such as availability, representativeness, and anchoring and adjustment. The use of such heuristics is natural for human beings because in many cases such as the prediction of future stock prices people do not have all the information needed to make proper estimates according to established quantitative models.

Keywords: behavioral decision theory, managerial decision making, heuristics, probabilities and frequencies, representativeness, quantitative models

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.