Quantal Theory in Operations Management

Yefen Chen and Yanan Song
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Yefen Chen: Cainiao Smart Logistics Network
Yanan Song: Academy of Mathematics and System Sciences, Chinese Academy of Sciences

Chapter 8 in Decision-making in Humanitarian Operations, 2019, pp 169-191 from Springer

Abstract: Abstract In recent decades, numerous studies on commercial operations have found that human managers are not perfectly rational and their behavioral preferences influence the performance of operations systems. Thus, efficient operations have to account for innate human or situation-based behavioral preferences for their optimization. In this chapter, we introduce a quantal theory, which provides a descriptive model to consider bounded rationality in analyzing operational decisions, based on the assumption that decision-makers make mistakes in calculating payoffs. We organize the applications of quantal theory in operations management, and show how to properly develop an informative behavioral model to analyze operational problems. Further, we discuss how to accommodate bounded rationality into humanitarian operations.

Keywords: Quantal theory; Decision error; Behavioral preferences; Bounded rationality; Operations management problems (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-91509-8_8

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DOI: 10.1007/978-3-319-91509-8_8

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