Models in Decision Theory and Processes

DBA Seminar
AY 2017-2018

Professor Erica M. Okada

This doctoral seminar examines various models of judgment and choice, and their
application to business and marketing topics.

The course will comprise of eight 3-hour class sessions. A planned course schedule
is attached. Class sessions will involve student-led discussions of papers assigned
for that day. Each student will do in-depth analyses of some combination of the
assigned readings.

The in-depth analysis will include:

1. an abstract of the article,

2. a clarification of any difficult or confusing parts of the article,
3. a discussion of the key contributions of the article,
4. a critique of the article, and suggestions as to how these weaknesses may be
improved,
5. a discussion of worthwhile further research, and how one may go about
executing it.

All students are expected to have thoroughly read, prior to the class, the assigned
papers, and be prepared to discuss them in class.

In addition to the readings in the planned schedule, each student will choose one
article for reading and discussion in class. Each student will lead the discussion of
the article that s/he chooses and create an in-depth analysis.

There will also be a term paper in the form of a research proposal. The paper could
be original theory, empirical work, or a review of some area of the course that the
student wishes to study in more depth. Detailed data collection and analysis may be
postponed to a later term. Each student will work with a Research Buddy who will
help critique the project. A one-page outline of the proposed paper is due on March
28, 2018. The Research Buddy will present a brief summary of the key aspects of
the proposal at that time. The final research proposal will be due on June 27, after a
presentation to the class by the student him/herself.

The three components of the course are the individual in-depth analyses of the
articles and summary of the topics (33.3%), term paper (33.3%), and class
participation (33.3%).
 Planned course schedule, to be updated periodically

Nov 22, 2017 (W): Introduction to the course

Lilien, Gary “Marketing Models: Past, Present and Future”

Dec 20 (W): Economics and psychology of choice

Kahneman, Daniel and Amos Tversky (1979), “Prospect Theory: An Analysis of

Decision under Risk,” Econometrica.

Thaler, Richard (1999), “Mental Accounting Matters,” Journal of Behavioral

Decision Making.

Okada, Erica Mina (2001), “Trade-ins, Mental Accounting, and Product

Replacement Decisions,” Journal of Consumer Research.

Jan. 24, 2018 (W): Culture

Hofstede, Geert (1994), “Management Scientists Are Human,” Management

Science.

Chen, Keith (2013), “The Effect of Language on Economic Behavior: Evidence

from Savings Rates, Health Behaviors, and Retirement Assets,” American
Economic Review.

Briley, Donnel and Jennifer L. Aaker (2006) “When Does Culture Matter? Effects
of Personal Knowledge on the Correction of Culture-Based Judgments,” Journal
of Marketing Research.

Feb. 28 (W): Emotions

Apesteguia, Jose and Ignacio Palacios-Huerta (2010), “Psychological Pressure in

Competitive Environments: Evidence from a Randomized Natural Experiment,”
American Economic Review.

Ifcher, John and Homa Zarghamee (2011), “Happiness and Time Preference: The
Effect of Positive Affect in a Random-Assignment Experiment,” American
Economic Review.

Hirshleifer, David and Tyler Shumway (2003), “Good Day Sunshine: Stock
Returns and the Weather,” Journal of Finance.
Mar 28 (W): Mid-term research proposal presentations, class discussions.

Apr. 25 (W): Trade-offs

Muller, Nicholas, Robert Mendelsohn, and William Nordhaus (2011),

“Environmental Accounting for Pollution in the United States Economy,”
American Economic Review.

Gershoff, Andrew, and Judy Frels (2015), “What Makes It Green? The Role of
Centrality of Green Attributes in Evaluations of the Greenness of Products,”
Journal of Marketing.

Okada, Erica Mina and Stephen Hoch (2004), “Spending Time versus Spending
Money,” Journal of Consumer Research.

May 30: Exchange

Andreoni, James (1995), “Cooperation in Public-Goods Experiments: Kindness or

Confusion,” American Economic Review.

Kube, Sebastian, Michel Marechal and Clemens Puppe (2012), “The Currency of
Reciprocity: Gift Exchange in the Workplace,” American Economic Review.

Duggan, Mark and Stephen Levitt (2002), “Winning Isn’t Everything: Corruption
in Sumo Wrestling,” American Economic Review.

Okada, Erica Mina (2010), “Uncertainty, Risk Aversion, and WTA vs. WTP,”
Marketing Science.

Jun 27: Final research proposal presentations, class discussions.