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Managerial Decision-Making in Non-Market Environments: A Survey Experiment

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  • De Figueiredo, John M.
  • De Figueiredo, Rui J. P. Jr.

Abstract

In this paper we consider a number of experiments to determine whether aspiring managers can solve non-market strategy problems. Conducting a survey of nearly 300 MBA students, we show that with simple, single-stage problems, managers are very competent in reaching the optimal choice given their non-market environment. As problems become more complex, however, they have much greater difficulty in arriving at the optimal result. In this regard, analysts must use some caution when evaluating empirical results and applying theoretical results.

Suggested Citation

  • De Figueiredo, John M. & De Figueiredo, Rui J. P. Jr., 2002. "Managerial Decision-Making in Non-Market Environments: A Survey Experiment," Working papers 4246-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    • Handle: RePEc:mit:sloanp:701
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    File URL: http://hdl.handle.net/1721.1/701
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    References listed on IDEAS

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    Cited by:

    1. De Figueiredo, John M. & De Figueiredo, Rui J. P. Jr., 2002. "The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation," Working papers 4247-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.

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