The goal of this research is to gain an understanding of the behavioral factors exhibited by actors making decisions in dynamic systems, particularly those of a supply chain. Previous researchers have looked at the question of supply chain management from a purely rational point of view, developing inventory models which assume each member acts to maximize a clearly defined (and often quite complex) profit function. Evidence from other settings, like experimental economics and psychology, suggests people rarely act so rationally. This research investigates actual behavior in simulated (experimental) supply chains and compares that behavior with the theoretically predicted behavior. There are two main contributions of this research. First, increasing our understanding of behavioral and institutional factors which affect supply chain coordination. Second, achieving a better understanding of how individuals make decisions in complex systems with difficult dynamics. On the applied front, results will illuminate the effects of institutions and behavioral tendencies on supply chain coordination and well as suggest recommendations for use in practice. On the theoretical front, results will aid our understanding of how individuals make decisions in complex problems, which rules-of-thumb they use, how they update their beliefs, and how they learn. This young investigator already has a record of accomplishment and is positioned to make major advances in an important area of research. The investigator's previous research has focused on the experimental testing of economic theories. Funding from the POWRE award will allow her to extend that research focus to the experimental testing of operations theories. This extension will enable her to use her experimental skills in attacking a new and important problem in operations management. It also will likely have a large impact on the field, enhancing her career and leadership potential.
