Jan 01 2005

Strategy Errors Made by Even the Smartest CEOs: How to Avoid them in Credit Unions

The purpose of this colloquium was to examine emerging theories of behavioral economics, and to apply those theories to credit union practices. The 2003 Nobel Prize in Economics was awarded to a pioneer researcher in the field of behavioral economics, an indication of the great value of this research.

Even the best executives are subject to making predictable errors that affect their organizations and their careers negatively. Many of these errors relate to how CEOs think about decisions in the face of substantial uncertainty.

The colloquium presentations were led by researchers Charles Holt, A. Willis Robertson Professor of Political Economy at the University of Virginia; and Gary Charness, Assistant Professor of Economics, University of California, Santa Barbara. Holt and Charness challenged participants to understand the biases that come into play in making strategic decisions, and apply this knowledge to their work in credit unions.