Condition on Occurrence of Unethical Behavior Due to Loss Aversion in Decision Making

Atsuo Murata, Tomoko Nakamura

Research output: Contribution to journalArticle

Abstract

We are prone to ethical errors owing to bounded ethicality stemming from bounded awareness. It is possible that unethical decision potentially leads to a crucial accident. It was hypothesized that decision makers engage more frequently in unethical behavior such as violation of rules or regulations to be kept if the decision options are presented in a loss frame than if they are presented in a gain frame especially when System1 is mainly used for decision making. As a basic study on safety management, in particular, the accidents which stem from the violation behavior due to lack in ethicality, it was explored whether we are more vulnerable to unethical behavior in the loss frame of decision making than in the gain frame. Consequently, in the range of this study, it was shown that we are not necessarily suffer more from unethical behavior in the loss frame than in the gain frame when we make decision relying on heuristic (System1).

Original languageEnglish
Pages (from-to)3891-3897
Number of pages7
JournalProcedia Manufacturing
Volume3
DOIs
Publication statusPublished - 2015

Keywords

  • Decision making
  • Framing effect
  • Loss aversion
  • Safety management
  • Unethical behavior

ASJC Scopus subject areas

  • Artificial Intelligence
  • Industrial and Manufacturing Engineering

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