Behavioral Science and Decision Theories

Predictably Irrational: The Hidden Forces that Shape Our Decisions (English Edition) by Dan Ariely, Harper
While we will discuss the basic effect within the class, the task of the group is as follows: The two to three presenters should elaborate on how the concept of the chapter in the chapter affect strategic decisions (e.g.
setting goals, reactions in companies, market entries, mergers etc.).
Most of the book is about how people decide in private consumption but we want to transfer that into the setting of a company and make compelling cases and examples. Integrate exercises or illustrations where
applicable. Most important is that you investigate how the effects described might alter rational decision making what we usually assume in Management. So it is not about decisions by consumers.
Each of the presenters must not exceed 7-8 minutes presentation
My Task: To read chapter 1 about relativity and answer the question below.
Describe the effects of the concept to strategic management decisions.
Preferred language style Simple (Easy vocabulary, simple grammar constructions)

Sample Solution

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