304disc.Assignment1

304disc.Assignment1 - Jeremy Klif ID: 9128653432 BUAD 304:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Jeremy Klif ID: 9128653432 BUAD 304: Discussion time: Mondays 12pm Chapter 6 Case: Natural Disasters and the Deicisions That Follow Question 1: Rommel’s quote about making “sound business decisions” is definitely affected by decision making biases. The primary evidence lies in his decision to cancel almost 40,000 homeowners’ policies after joining Nationwide Insurance in 2004. This action resulted in major negative publicity as well as damages to the customers which caused Nationwide Insurance to loose important potential revenues. He continues to believe that it was a positive step for the company which had negative consequences on the policy holders. In this case, his decision making has probably been affected by the “overconfidence bias” for two reasons. First, he affirms that this action was beneficial to Nationwide Insurance even though customers had to suffer the consequences. The second reason is that the idea of “overconfidence bias” happens when an individual is not at his best intellectual level. Rommel might have been in this state due to a new position at a completely new
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/11/2012 for the course BUAD 304 at USC.

Page1 / 2

304disc.Assignment1 - Jeremy Klif ID: 9128653432 BUAD 304:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online