Behavioral decision research has developed considerably over the past 25 years, and now provides significant insights into managerial decision making. This book attempts to embed behavioral decision research into the organizational realm by examining judgment in a variety of managerial contexts. The first seven chapters of the book provide readers with an opportunity to examine their individual judgment, while the last three chapters shift to consier a variety of interpersonal contexts that affect judgment.

The audience for this book is anyone who is interested in improving his or her judgment and decision making. The first four editions have been used in economics, psychology, and organizational behavior courses, and in a variety of executive programs as well. The book does not assume advanced knowledge of statistics, psychology, economics, or decision making. Rather, the book presents new research insights in an accessible form. For the psychology audience, the book offers a systematic framework for using psychological findings to improve judgment. For the economics audience, the book offers a critique of the classic economic model of decision making. For the consumer, management, and financial communities, the book creates opportunities to make better business decisions.

To existing chapters on general biases, motivational biases, judgment under uncertainty, escalation, fairness, rationality, cognition, and improving decision making, the fifth edition of the book adds a new chapter on common investment mistakes, as well as new ideas, examples, and applications.