Romantics, Mercenaries and Behavioral Rationality

Powell, Thomas C (2018) Romantics, Mercenaries and Behavioral Rationality. In: Behavioral Strategy in Perspective. Advances in Strategic Management, 39 . Emerald, Bingley, pp. 151-165. ISBN 978-1-78756-348-3

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Behavioral decision research focuses on cognitive biases and other barriers to economic rationality. However, if cognitive biases are costly to eliminate, the second-best solution to bounded rationality may be less rationality rather than more. I define the concept of behavioral rationality and discuss two extreme forms of strategizing, which I call Romantic and Mercenary. Using 20th century humanitarian Albert Schweitzer as a case study, I discuss the optimization of economic and behavioral rationality. I argue that the success of behavioral strategy as a field does not depend on removing cognitive biases but on helping people deliver more effective strategic actions.

Item Type: Book Section
Keywords: strategy
Subject(s): Strategy
Date Deposited: 19 Mar 2018 11:13
Last Modified: 22 Oct 2018 15:29
Funders: N/A

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