Bookshelf

The Hidden Forces That Shape Our Decisions

February 17, 2013 1112

Upside_of_IrrationalityAriely, D. (2008). Predictably Irrational: The Hidden Forces That Shape Our Decisions. New York, NY: HarperCollins. (Revised edition 2010)

Ariely, D. (2010). The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home. New York, NY: HarperCollins

Read the review by Daniel T. Holt of Mississippi State University, published in Family Business Review:

predictably_irrationalMany economists and organizational scholars would argue that corporate boards and managers should have objective criteria for evaluating firm performance and deciding between alternative courses of action. Of these, the primary criterion guiding decisions and subsequent actions should be the maximization of the long-term value of the firm. Those of us who study family businesses know, through our empirical work, that this single criterion does not always guide strategic choices. In their influential work, Gomez-Mejia, Haynes, Nunez- Nickel, Jacobson, and Moyano-Fuentes (2007) applied behavioral theory to argue that the controlling families of family enterprises did not focus solely on the maximization of long-term value. Instead, they exercised their authority such that noneconomic goals were pursued to (a) advance family values through the business, (b) preserve the family’s control of the firm, and (c) fulfill family obligations.

FBR_72ppiRGB_150pixWAlthough he has not focused on decision making in family businesses, Dan Ariely has written two recent books—Predictably Irrational and The Upside of Irrationality—that explore the irrational in individual decision making. He concludes, as most of us believe, that individuals are not guided solely by their pursuit of economic goals. As a scholar, I found Ariely’s books relevant for understanding the world of family business and a pleasure to read. Given the focus on individual decision making, they are clearly related to our understanding of marketing and buying decisions. In this review, I will share some thoughts regarding both books.

Click here to continue reading, and follow this link to see the latest issue of Family Business Review.

Business and Management INK puts the spotlight on research published in our more than 100 management and business journals. We feature an inside view of the research that’s being published in top-tier SAGE journals by the authors themselves.

View all posts by Business & Management INK

Related Articles

Ninth Edition of ‘The Evidence’: Tackling the Gender Pay Gap 
Communication
October 31, 2024

Ninth Edition of ‘The Evidence’: Tackling the Gender Pay Gap 

Read Now
The Role of Place in Sustainability
Business and Management INK
October 28, 2024

The Role of Place in Sustainability

Read Now
Turning to Glitter in Management Studies – Why We Should Take ‘Unserious’ Glitter Serious to Understand New Management Practices
Business and Management INK
October 24, 2024

Turning to Glitter in Management Studies – Why We Should Take ‘Unserious’ Glitter Serious to Understand New Management Practices

Read Now
Diving Into OSTP’s ‘Blueprint’ for Using Social and Behavioral Science in Policy
Bookshelf
October 14, 2024

Diving Into OSTP’s ‘Blueprint’ for Using Social and Behavioral Science in Policy

Read Now
Eighth Edition of ‘The Evidence’: How Sexist Abuse Undermines Political Representation 

Eighth Edition of ‘The Evidence’: How Sexist Abuse Undermines Political Representation 

In this month’s issue of The Evidence newsletter, Josephine Lethbridge explores rising levels of abuse directed towards women in politics, spotlighting research […]

Read Now
Utilizing Academic-Practitioner Partnering for Societal Impact

Utilizing Academic-Practitioner Partnering for Societal Impact

In this article, co-authors Natalie Slawinski, Bruna Brito, Jennifer Brenton, and Wendy Smith reflect on the inspiration behind their research article, “Reflections on deep academic–practitioner partnering for generative societal impact,” published in Strategic Organization.

Read Now
Trippin’ Forward: Management Research and the Development of Psychedelics

Trippin’ Forward: Management Research and the Development of Psychedelics

Charlie Smith reflects on his interest in psychedelic research, the topic of his research article, “Psychedelics, Psychedelic-Assisted Therapy and Employees’ Wellbeing,” published in Journal of Management Inquiry.

Read Now
0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments