"In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the bias in information to the final decision have been proposed. In this paper we discuss two laboratory experiments which were designed to test two such hypotheses. The first experiment tests the hypothesis that cost and sales estimations are made with the implicit assumption that a biased pay-off structure exists. The second experiment tests explicitly the effects of biased and unbiased pay-off structures on estimation within an organization. An analysis of the data for the two experiments is made and some implications for further research are drawn from the results."
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Academics from the United StatesEconomists from the United StatesBusiness theorists from the United StatesPeople from Minnesota
Original Language: English
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Richard Cyert, James G. March, William H. Starbuck. (1961) "Two experiments on bias and conflict in organisational estimation," Management Science, 254–64; Abstract
https://en.wikiquote.org/wiki/Richard_Cyert
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Richard Cyert
Richard Michael Cyert (July 22, 1921 – October 7, 1998) was an American economist, statistician and organizational theorist, who served as the sixth President of Carnegie Mellon University in Pittsburgh, Pennsylvania, United States, known from his seminal 1959 work "A behavioral theory of the firm" co-authored with and James G. March.
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