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ERIC Number: EJ1063509
Record Type: Journal
Publication Date: 2003-Sep
Pages: 15
Abstractor: As Provided
Reference Count: N/A
ISSN: ISSN-1540-4595
TradeSmith: An Exercise to Demonstrate the Illusion of Control in Decision Making
Martz, Ben; Neil, Thomas C.; Biscaccianti, Alessandro
Decision Sciences Journal of Innovative Education, v1 n2 p273-287 Sep 2003
Resource allocation decisions are a fundamental class of problems common throughout a business and therefore are found throughout business school curricula. Entrepreneurs must allocate capital, financiers must allocation cash, and production managers must create the best mix of multiple-use resources. Within this context, a business school's curriculum, instructional materials, and learning processes must consider the implications of individual decision making. Our traditional instructional content and delivery methods may effectively teach how to set up a decision "problem" and how to obtain an optimal answer. Yet, we may not be teaching a key underlying factor: that entrepreneurs, managers, and future leaders appear to have implicit cognitive biases, which discount information and skew individual decision making. The results of this study demonstrate that a phenomenon known as the "illusion of control" presents a fundamental challenge to the efficacy of formalized educational programs on decision making. TradeSmith was designed as a problem-based learning exercise to elicit for the illusion of control in a basic, resource allocation, decision environment. The subjects in this study demonstrate a decision-making pattern consistent with the "illusion of control" phenomenon. Finally, by revealing individuals' implicit design-making paradigms, TradeSmith helps them experience key issues for managerial decision making.
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Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A