Yaozhong Wu

• PhD
• Professor (Associate) at National University of Singapore

In uncertain environments, project reviews provide an opportunity to make “continue or abandon” decisions and thereby maximize a project’s expected payoff. We experimentally investigate continue/abandon decisions in a multistage project under two conditions: when the project is reviewed at every stage and when review opportunities are limited. Our...

The supply chain contracting literature has focused on incentive contracts designed to align supply chain members’ individual interests. A key finding of this literature is that members’ preferences for contractual forms are often at odds: the upstream supplier prefers relatively complex contracts that can coordinate the supply chain; however, the...

Members of a supply chain often make profit comparisons. A retailer exhibits peer-induced fairness concerns when his own profit is behind that of a peer retailer interacting with the same supplier. In addition, a retailer exhibits distributional fairness concerns when his supplier's share of total profit is disproportionately larger than his own. W...

The rising trend of projects with high-skilled and autonomous contributors increasingly exposes managers to the risk of idiosyncratic individual behaviors. In this paper, we examine the effects of an important behavioral factor, an individual's cost salience, the common behavioral tendency in inter-temporal decision-making wherein workers may attac...

The supply chain contracting literature has focused on incentive contracts designed to align supply chain members' individual interests. A key finding of this literature is that members' preferences for contractual forms are at odds: the upstream supplier prefers more complex contracts that can coordinate the supply chain, with the simple 'wholesal...

A social dilemma occurs when it is optimal for each member of a team to act in his own interest but, if all participants do so, everyone is worse-off than if they had done otherwise. Social dilemmas are often observed in operational processes involving teamwork, such as developing new products or implementing total quality programs. The extent to w...

Supply chain contracting literature traditionally has focused on aligning incentives for economi- cally rational players. Recent work has hypothesized that social preferences, separate from eco- nomic incentives, may influence behavior in supply chain transactions. Social preferences refer to intrinsic concerns for the other party's welfare in the...

Fair Process research has shown that people care not only about outcomes, but also about the process that produces these outcomes. For a decision process to be seen as fair, the people affected must have the opportunity to give input and possibly to influence the decision, and the decision process and rationale must be transparent and clear. Existi...

Behavioral Operations Management investigates new developments around behavioral components-"people issues"-in operations management (OM). While these "people issues" are not new, OM has not dealt with them in a serious or consistent manner until the last 10 years or so. What is new is the emergence of a set of methods and structured areas of study...

We consider the dynamic pricing problem of a monopolist firm in a market with repeated interactions, where demand is sensitive to the firm’s pricing history. Consumers have memory and are prone to human decision-making biases and cognitive limitations. As the firm manipulates prices, consumers form a reference price that adjusts as an anchoring sta...

Selection procedures help identify the best of a finite set of simulated alternatives. Most work has measured the quality of a selection with the probability of correct selection, P(CS), but the expected opportunity cost of a potentially incorrect decision makes more sense in business contexts. This paper analyzes the first selection procedures tha...