Smart Economic Decision-Making in a Complex World is a fresh and reality-based perspective on decision-making with significant implications for analysis, self-understanding and policy. The book examines the conditions under which smart people generate outcomes that improve their place of work, their household and society. Within this work, the curious reader will find interesting open questions on many fascinating areas of current economic debate, including, the role of realistic assumptions robust model building, understanding how and when non-neoclassical behavior is best practice, why the assumption of smart decision-makers is best to understand and explain our economies and societies, and under what conditions individuals can make the best possible choices for themselves and society at large. Additional sections cover when and how efficiency is achieved, why inefficiencies can persist, when and how consumer welfare is maximized, and what benchmarks should be used to determine efficiency and rationality. Makes the case for 'smart and rational' decision-making as a context-dependent rational process that is framed by socio-cultural environment and conditioned by institutional capacities Explains how incorporation of the 'smart' decision-maker concept into economic thought improves our understanding of how, why and when people generate certain outcomes Explores how economic efficiency can be achieved, individual preferences realized, and social welfare maximized through the use of 'smart and rational' approaches
Faced with ever-increasing complexity on a daily basis, the decision-makers of today are struggling to find the appropriate models, methods and tools to face the issues arising in complex systems across all levels of global operations. Having, in the past, resorted to outdated approaches which limit problem-solving to linear world views, we must now capitalize on complexities in order to succeed and progress in our society. This book provides a guide to harnessing the wealth inherent to complex systems. It organizes the transition to complex decision-making in all business spheres while providing many examples in various application domains. The authors offer fresh developments for understanding and mastering the global “uberization” of the economy, the post-modern management of computer-assisted production and the rise of cognitive robotics science applications.
Publisher's description: This book describes eight different models of decision-making, compares the models, and illustrates how to use each model with actual cases from schools. The frameworks include classical, administrative, incremental, mixes scanning, political, and garbage-can models, as well as two models of shared decision-making. After illustrating the use of these decision-making models to analyze and develop solution strategies, students have the opportunity to explore about fifty actual cases to build their own analyses and solution strategies.
The right tools to guide real decisions When you're climbing a mountain, you have to carefully consider every step if you want to reach your goal. You need to know how your tools will actually perform on the mountain. It also helps to have a trusted guide who knows the way. The same holds true in today's highly competitive, global business environments. The decisions managers make are more complex and critical than ever before. You need to understand how to use economic analysis techniques to make real business decisions. When it comes to making real-life decisions based on sound economic analysis, there is no better guide than Samuelson and & Marks's Managerial Economics, 5th Edition. Featuring many detailed, real-world examples, as well as strong coverage of decision making under uncertainty, game theory, and international topics, this practical text equips you with the right tools you need to make smart decisions. New in the Fifth Edition * Updated and revised chapters on making decisions under uncertainty (Chapters 8 and 9). * New discussions of behavioral economics, including such issues as bounded rationality, sunk-cost fallacies, decision-making heuristics and biases, and the winner's curse. * Updated and expanded coverage of corporate incentives and governance. * Incorporates new developments in the areas of technological change, network economies, and internet economics. * Updated applications and revised end-of-chapter problems.
The challenges of the 21st century - from humanitarian to economic to environmental-demand new ways of thinking and more complex, flexible ways of acting. We no longer live in a disconnected world, due to the advances in technology and travel; a globalized world and economy require different approaches. "Systems thinking" is a highly developed and influential way of looking at the myriad and complicated interactions between humans, institutions, and natural processes.This book will help you understand the basics of systems thinking while providing you with the motivation to apply these tenants to your professional and personal life. From a thorough grounding in its basic principles to examples of how systems thinking works in real-time situations, the lessons and suggestions herein will guide you through the basic tenants, such as interconnectedness, synthesis, emergence, feedback loops, causality, and systems mapping. Move past the traditional forms of linear, mechanistic thinking to a more complex and dynamic way to solve problems, plan strategically, and make smarter decisions.Some of the specific material you will encounter in this book includes: An overall understanding of systems thinking and how each basic tenant leads to a greater understanding of this new approach to professional and personal success A detailed understanding of the archetypes that are identified within systems thinking, such as drifting goals and success to the successful, and how to utilize those archetypes in developing plans Chapters on how to specifically cultivate problem-solving skills, strategic planning, and forward-thinking decision making An understanding of mental modes and how we use them and how to change them to incorporate into our larger vision for the future A pragmatic guide to achieving success within a complex and dynamic world that requires new and original ways of thinking about how we interact with others and with systems themselves Whether you implement the practices of systems thinking within an organization or in your own interactions with the world, you will find it to be a dynamic and creative way to confront whatever challenges stand before you. The world in which we live isn't static; therefore, our responses to problem-solving and making smart decisions must also be active and engaged. Employing the new tools proposed by systems thinking will assist us cultivating this kind of adaptive and responsive skill set. Systems thinking encourages us to think in a three dimensional way and learning the terms and tools of this new approach to business, and the world can assist us in solving the complex problems that we face, as well as encourage us to plan well and make smarter decisions for our future.
Offers essays by more than 150 top business leaders that cover a range of topics pertaining to management, as well as biographical information, a world almanac with twenty-six industry sector surveys, and profiles of 150 countries.
In this book I develop a theory of complexity for economics and manage ment sciences. This book is addressed to the mathematically or analytically oriented economist, psychologist or management scientist. It could also be of interest to engineers, computer scientists, biologists, physicists and ecologists who have a constant desire to go beyond the bounds of their respective disciplines. The unifying theme is: we live in a complex world, but how can we cope with complexity? If the book has made the reader curious, and if he looks at modelling, problem recognition and problem solving within his field of competence in a more "complex" way, it will have achieved its goal. The starting point is the recognition that complexity is a well-defined concept in mathematics (e.g. in topological dynamics), computer science, information theory and artificial intelligence. But it is a rather diffuse concept in other fields, sometimes it has only descriptive value or even worse, it is only used in a colloquial sense. The systematic investigation of complexity phenomena has reached a mature status within computer science. Indices of computer size, capacity and performance root ultimately in John von Neumann's paradigmatic model of a machine, though other 1 roots point to McCulloch and Pitts, not to forget Alan Turing. Offsprings of this development include: -complexity of formal systems and recursiveness; -cellular automata and the theory of self-reproducing machines; -theory of program or computational complexity; -theory of sequential machines; -problem solving, cognitive science, pattern recognition and decision processes.