A Course in Game Theory by Rubenstein

By Rubenstein

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Policies to halt the decrease of the number of subscribers to the paper were based on the partial and biased cognitive map of the promotion circulation department.  However the latter gave rise to a loss of advertising, a slimmer magazine and hence loss of new trial readers who did not continue their subscription.  can coordinate such a rich array of highly specialized activities (from editing to printing) and yet formulate its major policy decisions on out­of­date maps of causality containing untested beliefs and the simplest of arguments.

See Argyris, 1992).  This was for instance quite convincingly demonstrated in a series of experiments conducted by Asch (1963).  A phenomenon known more generally as the hog cycle. ' Sharing and Aligning Mental Models: Creating a View of the Whole The previous sections show that problems are subjective constructions where definitions can vary widely between different people of the same organization.  This in turn impedes the effective operation of the organization, because it will induce a lack of cooperation.

To illustrate the process of piecemeal engineering and its dangers let me provide an example from a project we conducted for a regional health care insurance organization in the Netherlands.  In other words the general practitioner (working in the so­called first echelon) functions as a kind of gatekeeper for the so­called second echelon (containing medical specialists and hospitals).  In a number of cases general practitioners had replied that their higher referral rates were caused by the fact that their practice population contained more older patients and more women compared to the populations of other general practitioners.

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