The Impact of Behavioral Assumptions on Management Ability: A Test Based on the Earnings of MBA Graduates

Management and Organization Review, 2013, 9(2), 209-32

41 Pages Posted: 10 Jun 2009 Last revised: 22 Jul 2018

See all articles by Benito Arruñada

Benito Arruñada

Pompeu Fabra University - Department of Economics and Business; Barcelona GSE

Xosé H. Vázquez

Universidade de Vigo

Date Written: June 1, 2009

Abstract

The paper explores the consequences that different behavioral assumptions in the training of managers may have on their future performance. We argue that training with an emphasis on the standard assumptions used in economics (rationality and self-interest) is good for technical posts but may lead future managers to rely excessively on rational and explicit safeguarding, crowding out instinctive relational heuristics and signaling a “bad” human type to potential partners. In contrast, the diverse, implicit and even contradictory nature of behavioral assumptions in management theories does not conflict with innate cooperative tools and may provide a good training ground for using such tools. We present tentative confirmatory evidence by examining how the weight placed on behavioral assumptions in the core courses of the top 100 business schools influences the average salaries of their MBA graduates. Controlling for the self-selected average quality of their students and some other characteristics of schools, average salaries are seen to be significantly greater for MBA programs whose core curriculum contains a larger proportion of management courses.

Keywords: evolutionary psychology, economics, management, contractual heuristics, rationality, self-interest

JEL Classification: A23, B41, D01, D87, M12, M51

Suggested Citation

Arruñada, Benito and Vázquez, Xosé H., The Impact of Behavioral Assumptions on Management Ability: A Test Based on the Earnings of MBA Graduates (June 1, 2009). Management and Organization Review, 2013, 9(2), 209-32, Available at SSRN: https://ssrn.com/abstract=1154106 or http://dx.doi.org/10.2139/ssrn.1154106

Benito Arruñada (Contact Author)

Pompeu Fabra University - Department of Economics and Business ( email )

Ramon Trias Fargas 25-27
Department of Economics and Business
Barcelona, 08005
Spain
+34 93 542 25 72 (Phone)
+34 93 542 17 46 (Fax)

HOME PAGE: http://www.econ.upf.edu/~arrunada

Barcelona GSE ( email )

Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain

Xosé H. Vázquez

Universidade de Vigo ( email )

ECOBAS (Economics and Business Admon. for Society)
Rúa Leonardo da Vinci s/n
Vigo, Pontevedra 36310
Spain
630423117 (Phone)

HOME PAGE: http://ecobas.webs.uvigo.es/

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