The Handbook of Behavioral Operations

<p>Table of Contents<br /> </p>
<p>List of contributors<br /> </p>
<p>Preface<br /> </p>
<p>Part I: Methodology<br /> </p>
<p>Chapter 1: Designing and Conducting Laboratory Experiments<br /> Elena Katok<br /> </p>
<p>1.1 Why Use Laboratory Experiments?<br /> </p>
<p>1.2 Categories of Experiments<br /> </p>
<p>1.3 Some Prototypical Games<br /> </p>
<p>1.4 Established Good Practices for Conducting BOM Laboratory<br /> </p>
<p>1.5 Infrastructure and Logistics<br /> </p>
<p>References<br /> </p>
<p>Chapter 2: Econometrics for Experiments<br /> Kyle Hyndman and Matthew Embrey<br /> </p>
<p>2.1 Introduction<br /> </p>
<p>2.2 The Interaction between Experimental Design and Econometrics<br /> </p>
<p>2.3 Testing Theory and Other Hypotheses: Classical Hypothesis Testing <br /> </p>
<p>2.4 Testing Theory and Other Hypotheses: Regression Analysis <br /> </p>
<p>2.5 Dependence of Observations <br /> </p>
<p>2.6 Subject Heterogeneity <br /> </p>
<p>2.7 Structural Estimation<br /> </p>
<p>2.8 Concluding Remarks <br /> </p>
<p>References<br /> </p>
<p>Chapter 3: Incorporating Behavioral Factors into Operations Theory<br /> Tony Haitao Cui and Yaozhong Wu<br /> </p>
<p>3.1 Types of Behavioral Models <br /> </p>
<p>3.2 Identifying Which Behavioral Factors to Include <br /> </p>
<p>3.3 Nesting the Standard Model <br /> </p>
<p>3.4 Developing Behavioral Operations Model <br /> </p>
<p>3.5 Modeling for Testable Predictions <br /> </p>
<p>References<br /> </p>
<p>Chapter 4: Behavioral Empirics and Field Experiments<br /> Maria R. Ibanez and Bradley R. Staats<br /> </p>
<p>4.1 Going to the Field to Study Behavioral Operations </p>
<p>4.2 Analyzing the Data: Common Empirical Methods </p>
<p>4.3 Field Experiments (Creating the Data) </p>
<p>4.4 Conclusion: The Way Forward </p>
<p>References </p>
<p>Part II: Classical Approaches to Analyzing Behavior<br /> </p>
<p>Chapter 5: Biases in Individual Decision Making <br /> Andrew M. Davis<br /> </p>
<p>5.1 Introduction </p>
<p>5.2 Judgments Regarding Risk </p>
<p>5.3 Evaluations of Outcomes </p>
<p>5.4 Bounded Rationality </p>
<p>5.5 Final Comments and Future Directions </p>
<p>Acknowledgments </p>
<p>Bibliography </p>
<p>Chapter 6: Other Regarding Behavior: Fairness, Reciprocity and Trust <br /> Gary E. Bolton and Yefen Chen<br /> </p>
<p>6.1 Introduction </p>
<p>6.2 The Nature of Social Preferences </p>
<p>6.3 Models of Social Preferences </p>
<p>6.4 Fair Choice: Stability and Factors that Influence It </p>
<p>6.5 Reciprocal Choice </p>
<p>6.6 Trust and Trustworthiness </p>
<p>6.7 Summary: The Empirical Nature of Fair Choice </p>
<p>References </p>
<p>Chapter 7: Behavioral Analysis of Strategic Interactions: Game Theory, Bargaining and Agency <br /> Stephen Leider<br /> </p>
<p>7.1 Behavioral Game Theory </p>
<p>7.2 Behavioral Analysis of Principal–Agent Problems </p>
<p>7.3 Bargaining </p>
<p>References </p>
<p>Chapter 8: Integration of Behavioral and Operational Elements through System Dynamics <br /> J. Bradley Morrison and Rogelio Oliva<br /> </p>
<p>8.1 Introduction </p>
<p>8.2 Decision Making in a Dynamic Environment </p>
<p>8.3 Principles (Guidelines) for Modeling Decision–making </p>
<p>8.4 Grounded Development of Decision–making Processes </p>
<p>8.5 Formulation Development and Calibration Example </p>
<p>8.6 Conclusion </p>
<p>Bibliography </p>
<p>Part III: Applications within Operations Management<br /> </p>
<p>Chapter 9: Behavioral Foundations of Queueing Systems<br /> Gad Allon and Mirko Kremer<br /> </p>
<p>9.1 Introduction and Framework </p>
<p>9.2 The Customer </p>
<p>9.3 The Server </p>
<p>9.4 The Manager </p>
<p>9.5 Testing Queueing Theory in the Laboratory </p>
<p>9.6 Conclusions and Future Research Opportunities </p>
<p>References </p>
<p>Chapter 10: New Product Development and Project Management Decisions<br /> Yael Grushka–Cockayne, Sanjiv Erat, and Joel Wooten<br /> </p>
<p>10.1 Exploration: The Creative Process </p>
<p>10.2 Plan: From Creative to Reality </p>
<p>10.3 Execute: From Planning to Execution </p>
<p>10.4 Conclusions </p>
<p>References </p>
<p>Chapter 11: Behavioral Inventory Decisions: The Newsvendor and Other Inventory Settings<br /> Michael Becker–Peth and Ulrich W. Thonemann<br /> </p>
<p>11.1 Introduction </p>
<p>11.2 Nominal and Actual Order Quantities </p>
<p>11.3 Decision Biases </p>
<p>11.4 Utility Functions </p>
<p>11.5 Individual Heterogeneity </p>
<p>11.6 Other Inventory Models </p>
<p>11.7 Summary and Outlook </p>
<p>Acknowledgments </p>
<p>References </p>
<p>Chapter 12: Forecast Decisions<br /> Paul Goodwin, Brent Moritz, and Enno Siemsen<br /> </p>
<p>12.1 An Introduction to Forecasting Behavior </p>
<p>12.2 Judgment Biases in Point Forecasting </p>
<p>12.3 Judgment Biases in Forecasting Uncertainty </p>
<p>12.4 Organizational Forecasting Processes </p>
<p>12.5 Improving Judgmental Forecasting </p>
<p>12.6 Conclusion and Future Research Opportunities </p>
<p>References </p>
<p>Chapter 13: Buyer–Supplier Interactions<br /> Kay–Yut Chen and Diana Wu<br /> </p>
<p>13.1 Introduction </p>
<p>13.2 Coordination with Imperfect Information: the Beer Distribution Game </p>
<p>13.3 Relationships under Incentive Conflicts: Contracting in Supply Chains </p>
<p>13.4 Contracting and Mechanism Design </p>
<p>13.5 Conclusion and Future Possibilities </p>
<p>References </p>
<p>Chapter 14: Trust and Trustworthiness<br /> &Ouml;zalp &Ouml;zer and Yanchong Zheng<br /> </p>
<p>14.1 Are There Any Business Case Studies Where Trust and Trustworthiness Matter? </p>
<p>14.2 What Is Trust? </p>
<p>14.3 What Is Trustworthiness? </p>
<p>14.4 How Can We Measure Trust and Trustworthiness? </p>
<p>14.5 What Are the Building Blocks of Trust and Trustworthiness? </p>
<p>14.6 Two Remarks on Research Methods (Optional) </p>
<p>14.7 Conclusion </p>
<p>References </p>
<p>Chapter 15: Behavioral Research in Competitive Bidding and Auction Design<br /> Wedad Elmaghraby and Elena Katok<br /> </p>
<p>15.1 Overview of Behavioral Operations Research on Auctions </p>
<p>15.2 What we learned from experimental economics literature on forward auctions </p>
<p>15.3 Buyer–Determined Auctions </p>
<p>15.4 Relationships and Moral Hazard in Auctions </p>
<p>15.5 Empirical Findings on Bidder Behavior, Judgment and Decision Making Bias </p>
<p>15.6 Supply Risk </p>
<p>15.7 Elements of Auction Design </p>
<p>15.8 Comparing and Combining Auctions with Negotiations </p>
<p>15.9 Ongoing and Future Directions </p>
<p>References </p>
<p>Chapter 16: Strategic Interactions in Transportation Networks<br /> Amnon Rapoport and Vincent Mak<br /> </p>
<p>16.1 Introduction </p>
<p>16.2 Experiments on Route Choice in Networks with Fixed Architecture </p>
<p>16.3 Experiments on Traffic Paradoxes </p>
<p>16.4 Experiments on the Pigou–Knight–Downs Paradox </p>
<p>16.5 Experiments on the Downs–Thomson Paradox </p>
<p>16.6 Experiments on the Braess Paradox </p>
<p>16.7 Discussion and Conclusions </p>
<p>References </p>
<p>Chapter 17: Incorporating Customer Behavior into Operational Decisions<br /> Anton Ovchinnikov<br /> </p>
<p>17.1 How to Think about Behaviors in Operational Settings: Customer Journey Maps </p>
<p>17.2 The Before Behaviors </p>
<p>17.3 The During Behaviors </p>
<p>17.4 The After Behaviors </p>
<p>17.5 Concluding Remarks </p>
<p>References </p>
<p>Chapter 18: The Future is Bright: Recent Trends and Emerging Topics in Behavioral Operations<br /> Karen Donohue and Kenneth Schultz<br /> </p>
<p>18.1 Introduction </p>
<p>18.2 Current Research Trends </p>
<p>18.3 Emerging Behavioral Operations Topics </p>
<p>18.4 Final Remarks </p>
<p>Acknowledgement </p>
<p>References </p>
<p>Index</p>