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Testing Bowman's Managerial Coefficient Theory Using a Competitive Gaming Environment

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  • William Edward Remus

    (University of Hawaii)

Abstract

In this paper Bowman's managerial coefficient theory is evaluated in a competitive environment, the Executive Game. The literature on Bowman's theory is surveyed and a review is made to justify using games to test decision theories. The experimental data reveal that decision rules fit the data well. Erratic and biased decision making is found to be a linear function of rank. Learning consistent with oligopolistic theory is found to occur. The applicability of Bowman's theory in competitive environment is established and the theory extended.

Suggested Citation

  • William Edward Remus, 1978. "Testing Bowman's Managerial Coefficient Theory Using a Competitive Gaming Environment," Management Science, INFORMS, vol. 24(8), pages 827-835, April.
    • Handle: RePEc:inm:ormnsc:v:24:y:1978:i:8:p:827-835
    DOI: 10.1287/mnsc.24.8.827
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    Cited by:

    1. Prem Vrat & Sunaina Sangwan, 2016. "Employability Models for Consistency in Quality of Hiring Decisions: A Context of MBA Graduates," Vision, , vol. 20(4), pages 323-330, December.
    2. Thomas Hutzschenreuter & S. Alexander Borchers & Philippa‐Luisa Harhoff, 2021. "Competitors matter: How competitors' actions moderate the influence of firm profitability on the prioritization between growth and efficiency increase," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 326-342, March.
    3. Sterman, John, 1987. "Modeling managerial behavior--misperceptions of feedback in a dynamic decisionmaking experiment," Working papers 1933-87., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    4. M H Kunc & J D W Morecroft, 2007. "Competitive dynamics and gaming simulation: lessons from a fishing industry simulator," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1146-1155, September.
    5. Martin Kilduff & Reinhard Angelmar & Ajay Mehra, 2000. "Top Management-Team Diversity and Firm Performance: Examining the Role of Cognitions," Organization Science, INFORMS, vol. 11(1), pages 21-34, February.

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