Analysis of decisions on the use of technology: a study in the mobile telephone sector grounded in the axioms of behavioral economics

Alexandre Cappellozza and Otavio Prospero Sanchez

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2011, vol. 15, issue 6, 1078-1099

Abstract: Behavioral economics, a field that has received major contributions from Kahneman and Tversky, the former also having received a Nobel prize, is an approach that has focused on a number of aspects of behavior in human decisions, defining their outcomes as not being fully rational. Its main contribution was conquered by questioning the so far very well established Utility Theory, a very important basis in economics. This article aims to verify how decisions concerning the adoption and use of information technology are potentially affected by the factors described in Kahneman and Tversky's theory. This was done by means of an experiment adapted to the context of the mobile communications sector, which was chosen due to its economic and social relevance in recent years in Brazil. The data were analyzed by means of categorical group comparison techniques. The results provided evidence of non-rational behavior amongst decision makers as proposed by original authors, mainly those regarding aspects of the Prospect Theory. With this evidence, it is possible to question a number of aspects of individual and organizational decisions involving the use of information technology use, with important implications at the managerial levels.

Date: 2011
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