The effect of incentives on decision makers’  performance in a dynamic environment: Applying prospect theory on the Beer Game

dc.contributor.advisor	Korzilius, H.P.L.M.
dc.contributor.author	Qorbani, Davood
dc.date.issued	2017-08-30
dc.description.abstract	This study reports the results of an experiment on the effect of incentives on the bullwhip effect, being conducted in the Beer Game. The bullwhip effect can be explained by the increase in magnitude of orders placed by one echelon to its direct upper supplier in a supply chain. We put prospect theory in practice, and expose our treatment group – consist of risk-averse participants – to the loss-of-rewards incentive framing. Our results show that risk-averse subjects cause a larger bullwhip effect on the supply chain. Further, comparison of three customer/supplier link in the Beer Game provides evidences that the upstream of the chain suffer the most in a chain consists of risk-averse decision-makers who are exposed to a loss-of-rewards incentive framing. Research Topic: Supply Chain Dynamics Key words: Supply Chain, Beer Game, Prospect Theory, Risk Aversion, Bullwhip Effect, Dynamic Decision Making	en_US
dc.identifier.uri	https://theses.ubn.ru.nl/handle/123456789/7141
dc.language.iso	en	en_US
dc.thesis.faculty	Faculteit der Managementwetenschappen	en_US
dc.thesis.specialisation	European Master in System Dynamics	en_US
dc.thesis.studyprogramme	Master Business Administration	en_US
dc.thesis.type	Master	en_US
dc.title	The effect of incentives on decision makers’ performance in a dynamic environment: Applying prospect theory on the Beer Game	en_US

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