Behavioral assumptions and management ability
AbstractThe paper explores the consequences that relying on different behavioral assumptions in training managers may have on their future performance. We argue that training with an emphasis on the standard assumptions used in economics (rationality and self-interest) is good for technical posts but may also lead future managers to rely excessively on rational and explicit safeguarding, crowding out instinctive relational heuristics and signaling a “bad” human type to potential partners. In contrast, human assumptions used in management theories, because of their diverse, implicit and even contradictory nature, do not conflict with the innate set of cooperative tools and may provide a good training ground for such tools. We present tentative confirmatory evidence by examining how the weight given to behavioral assumptions in the core courses of the top 100 business schools influences the average salaries of their MBA graduates. Controlling for the self-selected average quality of their students and some other schools’ characteristics, average salaries are seen to be significantly greater for schools whose core MBA courses contain a higher proportion of management courses as opposed to courses based on economics or technical disciplines.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1157.
Date of creation: Jun 2009
Date of revision: Apr 2010
Contact details of provider:
Web page: http://www.econ.upf.edu/
Evolutionary psychology; economics; management; relational heuristics; rationality; self-interest.;
Other versions of this item:
- A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executive Compensation
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-03 (All new papers)
- NEP-CBE-2009-06-03 (Cognitive & Behavioural Economics)
- NEP-EDU-2009-06-03 (Education)
- NEP-EVO-2009-06-03 (Evolutionary Economics)
- NEP-SOC-2009-06-03 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bram Cadsby, Charles & Maynes, Elizabeth, 1998. "Choosing between a socially efficient and free-riding equilibrium: Nurses versus economics and business students," Journal of Economic Behavior & Organization, Elsevier, vol. 37(2), pages 183-192, October.
- Jeffrey Butler & Paola Giuliano & Luigi Guiso, 2009.
"The Right Amount of Trust,"
Economics Working Papers
ECO2009/33, European University Institute.
- Jeffrey Butler & Paola Giuliano & Luigi Guiso, 2009. "The Right Amount of Trust," EIEF Working Papers Series 0908, Einaudi Institute for Economic and Finance (EIEF), revised Sep 2009.
- Jeffrey Butler & Paola Giuliano & Luigi Guiso, 2009. "The Right Amount of Trust," NBER Working Papers 15344, National Bureau of Economic Research, Inc.
- Jeffrey Butler & Paola Giuliano & Luigi Guiso, 2010. "The Right Amount of Trust," Working Papers 2010.61, Fondazione Eni Enrico Mattei.
- Butler, Jeff & Giuliano, Paola & Guiso, Luigi, 2009. "The Right Amount of Trust," CEPR Discussion Papers 7461, C.E.P.R. Discussion Papers.
- Butler, Jeffrey V. & Giuliano, Paola & Guiso, Luigi, 2009. "The Right Amount of Trust," IZA Discussion Papers 4416, Institute for the Study of Labor (IZA).
- Ernst Fehr, 2003.
"Psychological Foundations of Incentives,"
- Falk, Armin & Fehr, Ernst, 2002. "Psychological Foundations of Incentives," CEPR Discussion Papers 3185, C.E.P.R. Discussion Papers.
- Fehr, Ernst & Falk, Armin, 2002. "Psychological Foundations of Incentives," IZA Discussion Papers 507, Institute for the Study of Labor (IZA).
- Ernst Fehr & Armin Falk, . "Psychological Foundations of Incentives," IEW - Working Papers 095, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Armin Falk, 2002. "Psychological Foundations of Incentives," CESifo Working Paper Series 714, CESifo Group Munich.
- Cosmides, Leda & Tooby, John, 1994. "Better than Rational: Evolutionary Psychology and the Invisible Hand," American Economic Review, American Economic Association, vol. 84(2), pages 327-32, May.
- FORGES, Françoise, 1988.
"Repeated games of incomplete information: non-zero-sum,"
CORE Discussion Papers
1988005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Forges, Francoise, 1992. "Repeated games of incomplete information: Non-zero-sum," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 6, pages 155-177 Elsevier.
- Daniel Kahneman & Dan Lovallo, 1993. "Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking," Management Science, INFORMS, vol. 39(1), pages 17-31, January.
- Robert H. Frank & Thomas Gilovich & Dennis T. Regan, 1993. "Does Studying Economics Inhibit Cooperation?," Journal of Economic Perspectives, American Economic Association, vol. 7(2), pages 159-171, Spring.
- Bruno Frey & Stephan Meier, 2005.
"Selfish and Indoctrinated Economists?,"
European Journal of Law and Economics,
Springer, vol. 19(2), pages 165-171, April.
- Dan A. Black & Seth Sanders & Lowell Taylor, 2003. "The Economic Reward for Studying Economics," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 365-377, July.
- Frank, Bjorn & Schulze, Gunther G., 2000. "Does economics make citizens corrupt?," Journal of Economic Behavior & Organization, Elsevier, vol. 43(1), pages 101-113, September.
- Williamson, Oliver E, 1973. "Markets and Hierarchies: Some Elementary Considerations," American Economic Review, American Economic Association, vol. 63(2), pages 316-25, May.
- Daniel Nagin & James Rebitzer & Seth Sanders & Lowell Taylor, 2002.
"Monitoring, Motivation and Management: The Determinants of Opportunistic Behavior in a Field Experiment,"
NBER Working Papers
8811, National Bureau of Economic Research, Inc.
- Daniel S. Nagin & James B. Rebitzer & Seth Sanders & Lowell J. Taylor, 2002. "Monitoring, Motivation, and Management: The Determinants of Opportunistic Behavior in a Field Experiment," American Economic Review, American Economic Association, vol. 92(4), pages 850-873, September.
- Robert H. Frank & Thomas D. Gilovich & Dennis T. Regan, 1996. "Do Economists Make Bad Citizens?," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 187-192, Winter.
- John R. Carter & Michael D. Irons, 1991. "Are Economists Different, and If So, Why?," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 171-177, Spring.
- Edward P. Lazear, 2000.
The Quarterly Journal of Economics,
MIT Press, vol. 115(1), pages 99-146, February.
- Joseph Tracy & Joel Waldfogel, 1994.
"The Best Business Schools: A Market Based Approach,"
NBER Working Papers
4609, National Bureau of Economic Research, Inc.
- Tracy, Joseph & Waldfogel, Joel, 1997. "The Best Business Schools: A Market-Based Approach," The Journal of Business, University of Chicago Press, vol. 70(1), pages 1-31, January.
- Etzioni, Amitai, 1988. "Normative-affective factors: Toward a new decision-making model," Journal of Economic Psychology, Elsevier, vol. 9(2), pages 125-150, June.
- Burton, Richard M. & Obel, Borge, 1988. "Opportunism, incentives, and the m-form hypothesis : A laboratory study," Journal of Economic Behavior & Organization, Elsevier, vol. 10(1), pages 99-119, July.
- Hector O. Rocha & Sumantra Ghoshal, 2006. "Beyond Self-Interest Revisited," Journal of Management Studies, Wiley Blackwell, vol. 43(3), pages 585-619, 05.
- Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-86, April.
- Herbert A. Simon, 1991. "Organizations and Markets," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 25-44, Spring.
- Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
- Sam Allgood & William Bosshardt & Wilbert van der Klaauw & Michael Watts, 2004. "What Students Remember and Say about College Economics Years Later," American Economic Review, American Economic Association, vol. 94(2), pages 259-265, May.
- George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
- John Tooby & Leda Cosmides & Michael E. Price, 2006. "Cognitive adaptations for n-person exchange: the evolutionary roots of organizational behavior," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(2-3), pages 103-129.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Why the hyper-rationality of economics isnt so good as a management education
by Nicholas Gruen in Club Troppo on 2009-06-18 15:31:30
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.