Behavioral Economics

Layers of Choice

Layers of Choice

February 5, 2014

Kahneman, author of ‘Thinking, Fast and Slow,’ details research on decision-making process.

Iris Bohnet,. (2010). Gender Equality: A Nudge in the Right Direction. The Financial Times. Publisher's VersionAbstract
It is not always easy to make what is seen to be the right choice – choosing an apple over a bar of chocolate, or paying money into a savings account rather than buying a new pair of shoes – but there might be a solution, and it may only take a nudge.
Iris Bohnet,, van Geen, A., & Bazerman, M. H. (2016). When Performance Trumps Gender Bias. Joint Versus Separate Evaluation. Management Science , 62 (5), 1225-1234. Publisher's VersionAbstract

We examine a new intervention to overcome gender biases in hiring, promotion, and job assignments: an “evaluation nudge,” in which people are evaluated jointly rather than separately regarding their future performance. Evaluators are more likely to focus on individual performance in joint than in separate evaluation and on group stereotypes in separate than in joint evaluation, making joint evaluation the money-maximizing evaluation procedure. Our findings are compatible with a behavioral model of information processing and with the System 1/System 2 distinction in behavioral decision research where people have two distinct modes of thinking that are activated under certain conditions.