Skip to main content

LUBS2785
Module Reading List - essential and supplementary readings

How Managers Make Decisions, 2020/21, Semester 1
Nicola Bown
N.J.Bown@lubs.leeds.ac.uk
Tutor information is taken from the Module Catalogue

Background Reading

Kahneman, Daniel (2012), Thinking, fast and slow, Penguin.

This book gives an overview of a number of topics covered on this module.  The book is written in a fairly readable way, even though it draws on decades of research work. You should find it good background reading to help to put the lectures in a broader context of research. You may wish to buy this for background reading, which is a low-cost paper back, but please note that no single text covers the whole module. However we provide you with a comprehensive narrative/summary on Minerva, which can be treated as your core text.

That said, we know some students like to use text books.  Here are some we recommend which cover some of the module material. You can also use these to provide an alternative introduction to the field (a different way of explaining a tricky concept is often helpful). 

Top of page

Key Texts

Bazerman, M. & Moore, D. A. (2013) Judgment in managerial decision making. 8th Edition; Wiley.
The 6th and 7th Editions are also useful.   

French, S., Maule, A. J. & Papamichail N (2009) Decision behaviour, analysis and support. Cambridge University Press. This book is available online via the library.

(This book is also available in Chinese, but not in the library. Previous Chinese students have found this of some use, but also that it is a very literal translation- some subtle meaning may have been lost in translation. We advise using the English version wherever possible).

Hardman, D. (2009) Judgment and decision making : psychological perspectives. BPS Blackwell.  

Newell, B. R. Lagnado D. A and. Shanks D. R. (2015) Straight choices : the psychology of decision making, 2nd edition. Psychology Press.  This book is available online via the library.

Top of page

Topic readings

We have indicated the essential reading for each topic (***). We do not expect you to read every item on every topic, but you must read the essential references. The other recommended readings provide a range of alternative sources when you are reading around the subject for assessment purposes to show deeper understanding. 

  We code readings as follows:

 *** Essential.  Excellent – you shouldn’t miss this.

*  Decent. Will provide extra material to deepen understanding (usually related to better marks)

 We recommend that you read essential references on a weekly basis and use the others to delve a little deeper for revision.

 

Top of page

Week 1 Introduction and Normative Decision Theory

*** Beach, L. & Connolly, T. (2005). The psychology of decision making. Sage. Chapter 4: Choice. Available as an Online Course Reading in Minerva.    

Quite a tough read, but aim to revisit this at various points throughout the module and more will drop into place.

 

* Baron, J. (2007) Thinking and Deciding 4th edition . CUP. Chapter 10: Normative Theory of Choice under Uncertainty. Pages 233-256.     

* French, S., Maule, A. J. & Papamichail N (2009) Decision behaviour, analysis and support. Cambridge University Press. Chapter 1: Introduction. Online.

*Hardman, D. and Harries, C. 2002. How rational are we? The Psychologist15(2), pp 76-79. (see online activities)

*Kay, J. 2012. Beware of Franklin’s gambit in making the big decisions. Financial Times.18 April, p.9. (see online activities)

 

Top of page

Week 2 Are People Rational Decision Makers?

**** Kahneman, D. 2012. Thinking Fast and Slow. London: Penguin, pp.3-15.    OCR REQUESTED BY LIBRARY (HT 30/09/2020) 

*** BBC. 2019. Documentary: Horizon: How You Really Make Decisions. [Online]. [Accessed 11 November 2019]. Available from:  https://learningonscreen.ac.uk/ondemand/index.php/prog/06A889EE?bcast=12927270  

 

*Bazerman, M. & Moore, D. A. (2013). Judgment in managerial decision making. 8th Edition; Wiley. pp 3-6        Available as an Online Course Reading in Minerva 

* French, S., Maule, A. J. & Papamichail, N. (2009) Decision behaviour, analysis and support. Cambridge University Press. Chapter 2: Behavioural decision studies, especially pages 26-36. Online

* Kahneman, D., & Frederick, S. (2002). Representativeness revisited: Attribute substitution in intuitive judgment. In T. Gilovich, D. Griffin, & D. Kahneman (Eds.), Heuristics and biases: the psychology of intuitive judgement (pp. 49–81). New York: Cambridge University Press Available as an Online Course Reading in Minerva .

* Kahneman, D. (2003). A Perspective on Judgment and Choice Mapping Bounded Rationality. The American Psychologist, 58, 697 – 720.

 

Top of page

Weeks 3 & 4 Gathering & Interpreting Information I & II

*** Bazerman, M. & Moore, D. A. (2013). Judgement in managerial decision making. 8th Edition; Wiley. Chapter 3: Common Biases.  .     

*** Hardman, D. 2009. Judgment and decision making: psychological perspectives . Chichester, UK: BPS Blackwell, Chapter 6, Confidence and optimism pp.93-105    Available as an Online Course Reading in Minerva 

*** Roxburgh, C. (2003), Hidden Flaws in strategy. The McKinsey Quarterly., 2, 26 – 40 (Seminar 1 reading)  

 

* Lovallo. D. & Kahneman, D. (2003) Delusions of success. Harvard Business Review, 81, 57 – 63.

* Newell, B R, Lagnado, D A & Shanks, D R (2015). Straight choices: The Psychology of Decision Making, 2nd edition. Psychology Press, Chapter 5 Appraising probability judgments & Chapter 6 Judgmental biases and heuristics. Online

Further reading on representations of risk

 * Gigerenzer, G., & Edwards, A. (2003). Simple tools for understanding risks: From innumeracy to insight. British Medical Journal, 327, 741−744. Online

* Hoffrage, U., Hafenbrädl, S., & Bouquet, C. (2015). Natural frequencies facilitate diagnostic inferences of managers. Frontiers in Psychology, 6, 642. Online

 Further reading on biases and heuristics

 * Arkes, H. (1991). Costs and benefits of judgment errors: implications for debiasing. Psychological Bulletin, 100, 3, 486-98. Online

 * Busenitz, L., & Barney, J. (1997). Differences between entrepreneurs and managers in large organisations: Biases and heuristics in strategic decision making. Journal of Business Venturing, 12, 9-30, online

 * Kahneman, D., & Frederick, S. (2002). Representativeness revisited: Attribute substitution in intuitive judgment. In T. Gilovich, D. Griffin, & D. Kahneman (Eds.), Heuristics and biases (pp. 49–81). New York: Cambridge University Press.      OCR REQUESTED BY LIBRARY (HT 30/09/2020) 

 * Mussweiler & Pfeiffer (2000). Overcoming the inevitable anchoring effect: Considering the opposite compensates for selective accessibility. Personality and Social Psychology Bulletin, 26, 1142-1150. Online

  

Top of page

Weeks 5 & 6 Decision Framing and Prospect Theory I & II

*** Kahneman & Tversky (1984) Choices, Values and Frames. The American Psychologist., 39, 341 – 350.   (Seminar 2 Reading).  

*** Bazerman, M. & Moore, D. A. (2013). Judgement in managerial decision making. 8th Edition; Wiley. Chapter 5. Framing and the Reversal of Preferences.    

 

* Camerer, C. (2000) Prospect Theory In The Wild: Evidence From The Field. In Kahneman & Tversky (Eds) (2000). Choices, values and frames . Cambridge University Press. Available as an Online Course Reading in Minerva    

* Hardman, D. (2009). Judgment and decision making : psychological perspectives. BPS Blackwell. Chapter 7: Decision making under risk and Uncertainty (pg 64-73) Available as an Online Course Reading in Minerva 

* Kuhberger, A. (1998) The influence of framing on risky decision making . Organizational Behavior and Human Decision Processes., 75, 23 – 55.

* Levin, L.P., Schneider, S. l. & Gaeth, G. J. (1998) All frames are not created equal: A typology and critical analysis of framing effects. Organizational behavior and human decision processes., 76, 149 188.

* Maule, J. & Villejoubert, G. (2007) What Lies Beneath: Reframing Framing effects. Thinking and Reasoning. 13, 25-44.

*Newell, B. R., Lagnado, D. A. & Shanks, D. R. (2007). Straight choices : the psychology of decision making: Psychology Press. pp115 – 134. Online.

* Wilkinson, N. & Klaes, M. (2012). An introduction to behavioral economics. 2nd edition; Palgrave. Chapter 5. (NOTE: In the 1st edition it is Chapter 3). Available as an Online Course Reading in Minerva  

* Wilkinson, N. & Klaes, M. (2017). An introduction to behavioral economics. 3rd edition; Palgrave. Chapter 5 Prospect Theory. Online

 

Top of page

Weeks 7 & 8 Mental Accounting

*** Bazerman, M. & Moore, D. A. (2013). Judgement in managerial decision making. 8th Edition; Wiley. Chapter 5: Framing and the Reversal of Preferences.    Available as an Online Course Reading in Minerva 

*** Thaler, R. H. (1999). Mental accounting matters. Journal of behavioral decision making., 12, 183–206.   

 

* Muehlbacher, S. & Kirchler, E. (2019) Individual differences in Mental Accounting, Frontiers in Psychology, 18 December, 2019 https://doi.org/10.3389/fpsyg.2019.02866

* Prelec, D., & Loewenstein, G. (1998). The red and the black: Mental accounting of savings and debt. Marketing Science : The marketing journal of INFORMS., 17, 4–28.

 * Wilkinson, N. & Klaes, M. (2012). An introduction to behavioral economics. 2nd edition; Palgrave. Chapter 6. (NOTE: In the 1st edition it is Chapter 4). (quite detailed) .  

* Wilkinson, N. & Klaes, M. (2017). An introduction to behavioral economics. 3rd edition; Palgrave. Chapter 6 Mental accounting. Available online

 

Top of page

Week 9 Motivational and Emotional Influences on Decision Making

*** Bazerman & Moore (2013) Judgement in managerial decision making. 8th Edition; Wiley. Chapter 6: Motivational and Emotional Influences on Decision Making     OCR REQUESTED BY LIBRARY (HT 30/09/2020) 

 

* Finucane, M., Peters, E. & Slovic, P. (2003). Judgment and decision making: The dance of affect and reason. In Schneider, S. L. & Shanteau, J. (Eds). Emerging perspectives on judgment and decision. Cambridge : Cambridge University Press Pg 327 – 364.      

* Lerner, J.S., Li, Y., Valdesolo, P., Kassam, K. S. (2015) Emotion and Decision Making, Annual Review of Psychology (2015) 66:1, 799-823. online

* Lerner, J.S., & Keltner, D. (2000) Beyond valence: Towards a model of emotion specific influences on judgement and choice. Cognition & Emotion, 14, 473- 493. Seminar 3 Paper. Online

* Loewenstein, G. (1996) Out of control. Organizational Behavior and Human Decision Processes, 65, 272-292 Online

* Loewenstein, G., Weber, E., Hsee, C.K., Welch, N. (2001). Risk as feelings. Psychological Bulletin, 127, 267 – 286. Online

* Montibeller, G. & von Winterfeldt, D. (2015) Cognitive and motivational biases in decision risk analysis, Risk Analysis, 35, (7), 1230-125. Online

* Newell, B R, Lagnado, D A & Shanks, D. R. (2007). Straight choices: The Psychology of Decision Making. Psychology Press. Chapter 15: Emotional influences on decision making. Online

* Phillips, H. (2008) Resist: The origins of willpower. New Scientist, 13th September, pp 40 – 43.

* Schwartz, N. (2000) Emotion, cognition and decision making. Cognition and Emotion, 14, 433- 440 (particularly pages 433- 435).

 

Top of page

 Week 10 Naturalistic Decision Making

*** Klein, G. (2008) Naturalistic Decision Making. Human factors : the journal of the Human Factors and Ergonomics Society., 50, 456 – 460.    

*** Klein, G. (2015) A naturalistic decision making perspective on studying intuitive decision making, Journal of Applied Research in Memory and Cognition, 4, (3), 164-168. Online  

 

* Kahneman, D. & Klein, G. (2009) Conditions for Intuitive Expertise: A Failure to Disagree. The American Psychologist, 64 (September), 515 – 526. Online.

* Klein, G. (2011) Streetlight and Shadows: searching for a keys to adaptive decision making. The MIT press.  Especially Chapter 6: Blending Intuition and Analysis to make Rapid Decisions. Online

* Klein, G. (1993) A recognition primed decision (RPD) model of rapid decision making. In Klein et al (Eds) Decision making in action : models and methodsAvailable as an Online Course Reading in Minerva.    

 

* Lipshitz, R., Klein, G., Orasanu, J., & Salas, E. (2001). Taking stock of naturalistic decision making. Journal of behavioral decision making. 14, 331 – 352. (Provides a critical review of the area, followed by a series of commentaries). 

* Newell, B. R. Lagnado D. A and. Shanks D. R. (2015). Straight choices: the psychology of decision making 2nd Edition. Psychology Press. Chapter 13, Optimality and expertise, especially pp 197- 200. online

 

 

This list was last updated on 02/11/2020