Managers Guide to Human Irrationalities Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Dan Ariely is one of the leading experts in the world of behavioral economics, the study of how people behave when making business and financial decisions. Ariely understanding should make managers think twice about the wisdom of the decisions they make on a regular basis - as well as internal processes that they use to make these decisions. Why, for example, managers will veto a 10% increase in the cost of $ 1 million project, thinking nothing of 1% of cost overruns on the $ 10 million budget - although the actual amount of the same thing? Why do they often struggle trying to choose between two similar alternatives, they are often better just a coin? In this wide-ranging interview, Ariely says, as the company Apple Inc 'S initial decision iPhone price by $ 600 just to drop it to $ 400 soon after could not have been a mistake, but instead a very tricky marketing tactic. It also explains why a product monopoly may not necessarily be desirable, because it can lead to consumer confusion as a result of slow sales. With regard to employment, Ariely strongly doubts interview processes are commonly used, and claims that some companies might be better to hire college graduates competent in random order. Near the end of the interview, he describes his research that explored the ways in which teams might be better able to make group decisions. Finally, Ariely explains one of their most valuable managerial ideas -. That adding even a little sense of employees increase their motivation is often very "Hide
by Alden M. Hayashi Source: MIT Sloan Management Review 9 pages. Publication Date: January 1, 2009. Prod. #: SMR303-PDF-ENG