Bounded rationality in decision making: an analysis of the decision-making biases
Decision-making is a multidisciplinary and ubiquitous phenomenon in organizations, and it can be observed at the individual, group, and organizational levels. Decision making plays, however, an increasingly important role for the manager, whose cognitive competence is reflected in his ability to ide...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2020-10-01
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| Series: | Business: Theory and Practice |
| Subjects: | |
| Online Access: | https://www.mla.vgtu.lt/index.php/BTP/article/view/11154 |
| _version_ | 1827363871454658560 |
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| author | Ana Rita Jordão Renato Costa Álvaro Lopes Dias Leandro Pereira José Pedro Santos |
| author_facet | Ana Rita Jordão Renato Costa Álvaro Lopes Dias Leandro Pereira José Pedro Santos |
| author_sort | Ana Rita Jordão |
| collection | DOAJ |
| description | Decision-making is a multidisciplinary and ubiquitous phenomenon in organizations, and it can be observed at the individual, group, and organizational levels. Decision making plays, however, an increasingly important role for the manager, whose cognitive competence is reflected in his ability to identify potential opportunities, to immediately detect and solve the problems he faces, and to predict and prevent future threats. Nevertheless, to what extent do managers of the most diverse sectors and industries continue to rely on false knowledge when they have better strategies at their disposal? The present article proposes, through the application of bibliographically based instruments, the diagnosis of three prominent biases – overconfidence, optimism, and anchoring effect – in managers of the Portuguese port sector, as well as also seeking to establish a comparative analysis with the conclusions already documented in relation to the Brazilian civil construction sector. In addition, and in view of the results obtained, this paper also provides a set of measures capable of contributing to the mitigation of the effects of these and other biases, and, in this way, to the improvement of the decisions of said managers. |
| first_indexed | 2024-03-08T07:57:25Z |
| format | Article |
| id | doaj.art-1b0f0e0d26ea4e7b8ec09914b51ee975 |
| institution | Directory Open Access Journal |
| issn | 1648-0627 1822-4202 |
| language | English |
| last_indexed | 2024-03-08T07:57:25Z |
| publishDate | 2020-10-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Business: Theory and Practice |
| spelling | doaj.art-1b0f0e0d26ea4e7b8ec09914b51ee9752024-02-02T13:09:44ZengVilnius Gediminas Technical UniversityBusiness: Theory and Practice1648-06271822-42022020-10-0121210.3846/btp.2020.11154Bounded rationality in decision making: an analysis of the decision-making biasesAna Rita Jordão0Renato Costa1Álvaro Lopes Dias2Leandro Pereira3José Pedro Santos4ISCTE, DMOGG, Av. das Forças Armadas, Lisbon, PortugalISCTE, DMOGG, Av. das Forças Armadas, Lisbon, Portugal; Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL), Lisboa, PortugalISCTE, DMOGG, Av. das Forças Armadas, Lisbon, Portugal; Universidade Lusófona, ECEO, Campo Grande 376, Lisbon, PortugalISCTE, DMOGG, Av. das Forças Armadas, Lisbon, Portugal; Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL), Lisboa, PortugalISCTE, DMOGG, Av. das Forças Armadas, Lisbon, PortugalDecision-making is a multidisciplinary and ubiquitous phenomenon in organizations, and it can be observed at the individual, group, and organizational levels. Decision making plays, however, an increasingly important role for the manager, whose cognitive competence is reflected in his ability to identify potential opportunities, to immediately detect and solve the problems he faces, and to predict and prevent future threats. Nevertheless, to what extent do managers of the most diverse sectors and industries continue to rely on false knowledge when they have better strategies at their disposal? The present article proposes, through the application of bibliographically based instruments, the diagnosis of three prominent biases – overconfidence, optimism, and anchoring effect – in managers of the Portuguese port sector, as well as also seeking to establish a comparative analysis with the conclusions already documented in relation to the Brazilian civil construction sector. In addition, and in view of the results obtained, this paper also provides a set of measures capable of contributing to the mitigation of the effects of these and other biases, and, in this way, to the improvement of the decisions of said managers.https://www.mla.vgtu.lt/index.php/BTP/article/view/11154biasesoverconfidenceoptimismanchoring effectport sector |
| spellingShingle | Ana Rita Jordão Renato Costa Álvaro Lopes Dias Leandro Pereira José Pedro Santos Bounded rationality in decision making: an analysis of the decision-making biases Business: Theory and Practice biases overconfidence optimism anchoring effect port sector |
| title | Bounded rationality in decision making: an analysis of the decision-making biases |
| title_full | Bounded rationality in decision making: an analysis of the decision-making biases |
| title_fullStr | Bounded rationality in decision making: an analysis of the decision-making biases |
| title_full_unstemmed | Bounded rationality in decision making: an analysis of the decision-making biases |
| title_short | Bounded rationality in decision making: an analysis of the decision-making biases |
| title_sort | bounded rationality in decision making an analysis of the decision making biases |
| topic | biases overconfidence optimism anchoring effect port sector |
| url | https://www.mla.vgtu.lt/index.php/BTP/article/view/11154 |
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