Hierarchies and decision-making in groups: experimental evidence

Sacred values in financial economic decision-making: Experimental evidence

Seminal work in finance and economics has studied theoretical models of ethical behavior. We provide experimental evidence for the role of a universal “sacred value,” namely, truth. We study this value in the context of earnings management, which is an important business setting where the conflict between personal gains and behavior consistent with the value of truth is particularly salient. We...

Decision Making and the Price Setting Newsvendor: Experimental Evidence

We present an experimental study of the price-setting newsvendor problem, which extends the traditional framework by allowing the decision maker to determine both the selling price and the order quantity of a given item. We compare behavior under this model with two benchmark conditions where subjects have a single decision to make (price or quantity). We observe that subjects deviate from the ...

Optimal Cascaded Hierarchies of Linguistic Decision Trees for Decision Making

For multiple attribute decision making, the underlying relationship between attributes and classification, decision or utility variable is often highly uncertain and imprecise. This requires an integrated treatment of uncertainty and fuzziness when modeling the propagation of information from low-level attributes to high-level decision variables. One of the main drawbacks to fuzzy modeling of s...

Decision Making Under Information Asymmetry: Experimental Evidence on Belief Refinements

We explore how individuals make decisions in an operations management setting when there is information asymmetry between the firm and an outside investor. A common assumption in the signaling game literature is that beliefs among the participants in the game are refined using the Intuitive Criterion refinement. Our experimental results provide evidence that the predictive power of this refinem...

The Use of Evidence by Decision-Making Committees