The Art and Science of Decision Making
Fall 2015
Section 35427R: Tuesdays and Thursdays 9:30-10:50 AM
Section 35440R: Tuesdays and Thursdays 11:00-12:20 PM
Professor: Dr. Cheryl Wakslak
Office: HOH 402
Cell Phone: (818) 732-9764
E-mail:
Lecture Class
Tuesday/Thursday 9:30-10:50 or 11:00-12:20 Room: VPD 107
Office Hours:
Tuesdays, 12:30-1:45 PM. If this time does not work, please email, call, or text to set up another time!
Introduction and Course Objective
Over the last thirty years, psychologists and economists have joined forces to study how people process information and make choices, rather than how they would make decisions if they were fully rational and selfish. This course will introduce you to the methods of social analysis used by psychologists, and explore how these methods have expanded our understanding of the nature, causes, and consequences of such deviations from “optimal” choice. Throughout, our goal will be to leverage insights from this growing area of scholarship (dubbed “behavioral economics” or “judgment and decision making”) to enhance your ability to make decisions – right now and in the future, as you move into leadership positions in organizations. We will develop frameworks for keeping biases in check, for understanding when to rely on intuition and when not to, and for improving your ability to generate excellent alternatives and make decisions you can stand behind proudly. You will learn how to assess empirical evidence, how to utilize such evidence in your own decision-making, and how to conduct simple research projects to improve organizational decision processes.
Learning Objectives
This course is designed to help you leverage the methods and insights of psychology to improve the quality of your decisions in your personal life and in the organizations with which you are and will be affiliated...
At the end of this course, you will be able to:
· Apply methods of social analysis from the discipline of psychology to the study of human decision making and behavior in economic, political, interpersonal, and organizational settings.
· Understand the nature of empirical evidence and assess the usefulness of different types of evidence (e.g., qualitative and quantitative) in explaining specific outcomes and providing a basis for organizational decisions; and
· Demonstrate an understanding of the interplay between individual decision-making, group dynamics, and organizational settings.
Prerequisites: None.
Required Materials and Course Notes:
Class information and the majority of course readings are available through yellowdig.com. We will be using three Harvard Business School cases, which must be purchased as a course reader through the bookstore. There is no required textbook. Class slides will be posted after lecture sessions. If for any reason you have a strong need for class slides before lecture sessions, please contact me directly.
Class Policies:
· Laptops and Cell Phones: Laptops are discouraged, but not banned. Cell phones are not permitted in class.
· Absences: When you are absent, the class can’t benefit from your comments and insights on the material, and this will of course hurt your class participation grade. If you are absent, you should arrange beforehand with a classmate to take notes and pick up any assignments or handouts.
· Late Arrivals: Please arrive on time to avoid disrupting the class.
· Email Correspondence: I am often, but not always, on email. Therefore, to make sure that you get any information you need well before deadlines, please email me at least 24 hours before you need an answer, want to set up a meeting, etc.
Grading Summary:
Components
/ % of GradeShort Assignments / 20%
Midterm Study Notes
Midterm / 5%
25%
Final Project (due date of final)
Collaborative Journal / 30%
10%
Participation / 10%
TOTAL / 100%
ASSIGNMENTS AND GRADING DETAIL
Short Writing Assignments (20%). Individual writing assignments will be assigned 5 times throughout the semester; each assignment is therefore worth 4% of your grade. These assignments are an integral part of the course and designed to get you thinking seriously about the course topics. The tentative schedule for these assignments is listed in the course schedule included in this syllabus. Papers are due at the start of the class session. Papers will lose 1 point on the grading scale (see next paragraph) for every day they are late. For truly extenuating circumstances, please contact me directly. If for some reason you must miss class, you must submit your assignment electronically before it is due. Papers have a strict 750 word limit. Please print the word count at the end of the assignment. All papers should be double spaced with 1” margins and 12 point font.
Papers will be graded on a 7-point scale. The endpoints will be used sparingly, with 7 reflecting an extraordinary response and 1 an unacceptable one. Most of the grades will be towards the middle of the scale (4,5,6). In general, these assignments do not have one correct answer. Use this as an opportunity to escape the perceived need of giving the professor what you think she wants, and instead give the professor what you think. I am looking for you to demonstrate understanding, but more, to reveal insight and creativity. Be specific; deeply develop your core point; and don’t waste time regurgitating the reading. Most importantly, be realistic: ask yourself how willing you would be to sit in a manager’s office advocating the use of your recommendation.
Midterm Study Notes (5%). The midterm will be on Thursday, October 8th. On Tuesday, October 6th, the class before the midterm, you must bring to class and submit a set of hand-written study notes you took in preparation for the midterm. We will be using that class period to study for the midterm using these notes.
Midterm (25%). The midterm will be on Thursday, October 8th. It will consist primarily of short-answer and essay questions.
Final Project (30%). The final project has two components: a 12-page paper and a 10-15 minute presentation. The presentations take place during the last three days of class and the paper is due on the final day of class. There are three project options:
Option 1: Business Proposal: Describe an original business idea that capitalizes on one or more of the phenomena discussed in the course. Your paper and presentation should clearly outline the proposal and argue for why it should be effective. Provide a brief review of past research relevant to the phenomena and cite any research that would support the viability and potential of your new venture. .
Option 2: Study a Case of Biased Decision-Making: Identify and research a real, unwise organizational or political decision that was made due to one of the biased decision processes covered in this course. Your paper and presentation should describe the setting/context in detail, what judgment errors were made, as well as evidence supporting the offered interpretation. Summarize past research on the relevant judgmental error and suggest strategies that might have been used to prevent the error, citing appropriate research to support your recommendations.
Option 3: Design an Intervention to Solve an Organizational or Policy Problem: Develop a proposed behavioral intervention to solve a problem at a particular organization or relating to a particular public policy issue and develop an argument for why your proposal should be implemented. The idea is to use the insights of the course to solve a real problem. For example, an organizational problem of interest might be high rates of absenteeism in a specific facility. A behavioral intervention might involve mailings to workers emphasizing low absenteeism rates among their peers. Put together a compelling proposal to convince management at the company/political constituents to implement your intervention and detailing both how to deploy it and how to measure its effectiveness. Describe in detail the setting/context, the problem to be addressed, the proposed intervention and the research that gave rise to it, and methods proposed for evaluating the intervention’s effectiveness.
You have the option of completing this project solo or in groups of up to 3. If you elect to do the project with a group, the group will turn in a single paper and make a single presentation, with each member of the group receiving the same grade.
Notes: I recommend meeting with me to discuss your individual or group project well before it is due, so I can provide any input that might be helpful. Also, as concerns the grading of the oral delivery portion of your final project, I will not penalize people for language difficulties when their first language is other than English.
Collaborative Journal (10%). I will be providing you with notebooks to use for journaling at the beginning of class. We’ll talk more in class about how we will use these notebooks to crystallize the course information and derive applicable “take-away” messages. The notebooks will be worked on in collaboration with another student. They will not be formally graded, but will receive full credit if you complete them as asked.
Participation (10%). You will only get out of this course as much as you are willing to put into it.
I expect you to come to class on time and to be prepared for discussion, by having read that day’s required reading. You are also expected to speak during class and make a contribution to the discussion. If you are uncomfortable with class participation, please let me know at the beginning of the term and I will work with you to help you overcome this barrier. Overall, my goal is to have a lively and widespread discussion; it is not important that every contribution you make is correct; what is important is that it is thought-out, provocative, and engaging.
Half of the participation points will be more formally awarded based upon your participation in our online forum, yellowdig.com. You must post to our shared website five times throughout the semester. This can include pinning or attaching a relevant article or video and explaining why it is relevant, commenting on something we discussed in class or asking a related question, commenting on someone else’s post, etc. “Liking” your own or other students’ posts is great, but alas will not count as a formal contribution. Nor will short comments that do not say anything substantive (e.g., “I agree,” “totally,” “great point”).
COURSE GUIDELINES
Add/Drop Process
In compliance with USC policies classes are open enrollment (R-clearance) through the third week of class.However, if you miss any classes, please talk to me about how much work you have missed before you register. If you don’t attend the first two class meetings and do not get in touch with me, I can drop you from the class.
Returning Coursework:
Coursework will be returned or available for pickup by students (in the case of Final Projects). Returned paperwork, unclaimed by a student, will be discarded after 4 weeks and will therefore not be available should a grade appeal be pursued following receipt of his/her grade. It is students’ responsibility to file and retain returned coursework.
Technology Policy
This is a course where in-class computer use is unnecessary and will only serve as distraction. So no laptop, PDA, iPad, cellphone use in class, please. If you need technology support because of a learning issue, please contact me at the very beginning of the semester.
Statement for Students with Disabilities:
Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m.–5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776.
Statement on Academic Integrity:
USC seeks to maintain an optimal learning environment. General principles of academic honesty include the concept of respect for the intellectual property of others, the expectation that individual work will be submitted unless otherwise allowed by an instructor, and the obligations both to protect one’s own academic work from misuse by others as well as to avoid using another’s work as one’s own. All students are expected to understand and abide by these principles. SCampus, the Student Guidebook, contains the Student Conduct Code in Section 11.00, while the recommended sanctions are located in Appendix A. http://www.usc.edu/dept/publications/SCAMPUS/gov/
Students will be referred to the Office of Student Judicial Affairs and Community Standards for further review, should there be any suspicion of academic dishonesty. The Review process can be found at: http://www.usc.edu/student-affairs/SJACS/. Failure to adhere to the academic conduct standards set forth by these guidelines and our programs will not be tolerated by the USC community and can lead to dismissal.
Emergency Preparedness/Course Continuity:
In case of an emergency in which travel to campus is difficult, USC executive leadership will announce an electronic way for instructors to teach students in their residence halls or homes using a combination of Blackboard, teleconferencing, and other technologies. In addition, you may be assigned a "Plan B" project that can be completed at a distance.
Incomplete Grades:
An incomplete (IN) grade may be assigned due to an “emergency” that occurs after the 12th week of classes. An “emergency” is defined as a serious documented illness, or an unforeseen situation that is beyond the student’s control, that prevents a student from completing the semester. Prior to the 12th week, the student still has the option of dropping the class. Arrangements for completing an IN course should be initiated by the student, and negotiated with the instructor. Class work to complete the course should be completed within one calendar year from the date the IN was assigned. The IN mark will be converted to an F grade should the course not be completed.
CLASS SESSIONS OVERVIEW
#
/Date
/ Topic / Readings/Assignments Due1
/ Tues 8/25 / Introduction / Read: Brooks (2011); Muoio (1998)2 / Thurs 8/27 / Heuristics and Biases 1 / Read: Gawande (1999)
3
/ Tues 9/1 / Heuristics and Biases 2 /Read: Gladwell (2003)
4
/ Thurs 9/3 / Overconfidence & Self-Serving Biases /Read: Gladwell (2009);Wallace (2005);Williams (2012)
Due: Homework 15
/ Tues 9/8 / Expectancies and Memory / Read: Chase & Dasu (2001)Watch: Community, Season 2, Episode 3
6
/ Thurs 9/10 / Prospect Theory / Read: Tversky & Kahneman (1981)Due: Homework 2
/ Tues 9/15 / No Class (Rosh Hashanah) / --
7
/ Thurs 9/17 / Want/Should Conflicts / Read: Cassidy (2006), Perry (1996)8
/ Tues 9/22 / Commitment Devices & Choice over Time / Read: Leiber (2010); Trope, Liberman, & Wakslak (2006)Watch: Gilbert video
9
/ Thurs 9/24 / Social Norms and Conformity / Prepare: OPower Case10
/ Tues 9/29 / Influence [In-class exercise] / Read: Cialdini (2001)11
/ Thurs 10/1 / Mental Accounting / Read: Loewenstein (2001)12
/ Tues 10/6 / Midterm Prep Session / Due: Homework 3, Midterm Prep Notes13