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Focusing failures in competitive environments: explaining decision errors in the Monty Hall game, the Acquiring a Company problem, and multiparty ultimatums
Author(s) -
Tor Avishalom,
Bazerman Max H.
Publication year - 2003
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.451
Subject(s) - focus (optics) , computer science , decision rule , competitive advantage , game theory , root cause , microeconomics , management science , operations research , economics , artificial intelligence , operations management , management , engineering , physics , optics
Abstract This paper offers a unifying conceptual explanation for failures in competitive decision making across three seemingly unrelated tasks: the Monty Hall game (Nalebuff, 1987), the Acquiring a Company problem (Samuelson & Bazerman, 1985), and multiparty ultimatums (Messick, Moore, & Bazerman, 1997). We argue that the failures observed in these three tasks have a common root. Specifically, due to a limited focus of attention, competitive decision makers fail properly to consider all of the information needed to solve the problem correctly. Using protocol analyses, we show that competitive decision makers tend to focus on their own goals, often to the exclusion of the decisions of the other parties, the rules of the game, and the interaction among the parties in light of these rules. In addition, we show that the failure to consider these effects explains common decision failures across all three games. Finally, we suggest that this systematic focusing error in competitive contexts can serve to explain and improve our understanding of many additional, seemingly disparate, competitive decision‐making failures. Copyright © 2003 John Wiley & Sons, Ltd.