Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307274 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Business Economics [ISSN:] 1861-8928 [Volume:] 93 [Issue:] 8 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2023 [Pages:] 1309-1354
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
Managers often make decisions in situations involving risk and uncertainty. To ensure the prosperity of the company, neutral behavior is desirable in such situations. However, when evaluating future-oriented managerial actions, cognitive biases can arise that are manifested as aversions towards risky and uncertain situations, leading to non-optimal decisions. In an online experiment with a convenience sample of 298 US participants, we investigate deviations from risk- and uncertainty-neutral managerial decisions and apply neutrality-promoting behavioral interventions in a business venture setting. We find that using a recommendation nudge before as well as after making an initial decision improves individual performance to achieve higher neutrality levels. In sum, we show that in managerial decision-making processes, where experience, time, and information are often lacking, simple decision-making aids lead to better decisions.
Subjects: 
Behavioral experiment
Managerial decisions
Nudging
Risk aversion
Uncertainty aversion
JEL: 
C91
D81
D91
M21
O33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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