MGMT1135 Study Guide - Final Guide: Satisficing, Confirmation Bias, Anchoring
Document Summary
As the manager in charge, you must make a decision about the appropriateness of discontinuing research on a new drug. This new drug would save lives, but it is uncertain whether the company can develop it within a reasonable time frame and at a reasonable cost. Your firm has already spent a small fortune on researching this drug. Early trials of the drug showed good results. Although dosage levels produced spurious effects, you are certain that time and effort will fix this. You decide to commit to the program based on this information. What decision-making bias may be affecting your decision: The tendency to overestimate the probability that one"s judgment in arriving at a decision is correct. A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information. Any time a negotiation takes place, so does anchoring. As soon as someone states a number, it compromises your ability to ignore that number.
