The Handbook of Behavioral Operations

BOM Handbook

Editors: Karen Donohue (University of Minnesota), Elena Katok (University of Texas at Dallas), Stephen Leider (University of Michigan)
Publisher: Wiley

Behavioral Operations Management (BOM) incorporates insights from psychology and behavioral economics to study how individuals make decisions in an operational context.  Examples of important behavioral factors include bounded rationality and decision heuristics, folk intuitions about random processes, preference regularities such as loss aversion and reference dependent preferences, and interpersonal factors such as trust and fairness.  Behavioral research frequently contrasts observed behavior with the predictions of “standard” analytical models.  Two major goals of BOM are to provide a better understanding of (and make better predictions about) behavioral regularities, and to provide guidance to firms on how to design mechanisms that will lead to better decisions and improved performance.  Much of the existing BOM research has utilized laboratory experiments; however there are a growing number of behaviorally-influenced theoretical models, empirical research and field experiments.  The field has grown tremendously in the last fifteen years – leading to several special issues in top journals (Management Science, Manufacturing & Service Operations Management, Production and Operations Management and Journal of Operations Management), an annual Behavioral Operations Research Conference, and INFORMS and POMS sections.

This book aims to be a comprehensive resource on BOM research for both those active in the field and those new to it.

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Table of Content

Section I: Methodology

Chapter Authors Affiliation Title
1 Elena Katok
University of Texas at Dallas Designing and Conducting Laboratory Experiments
2 Kyle Hyndman, and Matthew Embrey University of Texas at Dallas, University of Sussex Econometrics for Experiments 
3 Tony Cui and
Yaozhong Wu
University of Minnesota, National University of Singapore Incorporating Behavioral Factors into Operations Theory 
4 Maria Ibanez and Brad Staats and
Harvard Business School, University of North Carolina Behavioral Empirics and Field Experiments 

Section II: Classical Approaches to Analyzing Behavior

Chapter Authors Affiliation Title
5 Andrew Davis
The Johnson School,
Cornell University
Biases in Individual Decision Making
6 Gary Bolton and
Yefen Chen
University of Texas at Dallas Other Regarding Behavior: Fairness, Reciprocity and Trust
7 Stephen Leider University of Michigan Behavioral Analysis of Strategic Interactions: Game Theory, Bargaining and Agency
8 J. Bradley Morrison and Rogelio Oliva and Brandeis University, Texas A&M Integration of Behavioral and Operational Elements through Systems Dynamics 

Section III: Applications within Operations Management

Authors Affiliation Title
9 Mirko Kremer and
Gad Allon
Frankfurt School of Finance and Management, Northwestern University Behavioral Foundations of Queueing Systems 
10 Yael Grushka-Cockayne,  Sanjiv Erat,  and Joel Wooten Darden School of Business, University of California San Diego, University of South Carolina New Product Development and Project Management Decisions
11 Michael Becker-Peth and Ulrich Thonemann Erasmus University, University of Cologne Behavioral Inventory Decisions: The Newsvendor and other Inventory Settings
12 Enno Siemsen,  Brent Moritz, and Paul Goodwin University of Wisconsin, Penn State University, Univ of Bath Forecast Decisions
13 Kay-Yut Chen and Diana Wu University of Texas at Arlington, University of Kansas Buyer-Supplier Interactions
14 Ozalp Ozer and Yanchong Zheng University of Texas at Dallas, Massachusetts Institute of Technology Trust and Trustworthiness
15 Wedad Elmaghraby and Elena Katok University of Maryland, University of Texas at Dallas Behavioral Research in Competitive Bidding and Auction Design
16 Amnon Rapoport and Vincent Mak University of California Riverside, Cambridge University Strategic Interactions in Transportation Networks
17 Anton Ovchinnikov Queen's University Incorporating Customer Behavior into Operational Decisions
18 Karen Donohue and Ken Schultz University of Minnesota, Air Force Institute of Technology Behavioral Issues in Emerging Areas