Modeling Customer Bounded Rationality in Operations Management: A Review and Research Opportunities

39 Pages Posted: 29 Mar 2017 Last revised: 14 Oct 2017

See all articles by Hang Ren

Hang Ren

University College London - School of Management

Tingliang Huang

Haslam College of Business, University of Tennessee; University College London

Date Written: March 28, 2017

Abstract

Many studies in operations management started to explicitly model customer behavior. However, it is typically assumed that customers are fully rational decision-makers and maximize their utility perfectly. Recently, modelling customer bounded rationality has been gaining increasing attention and interest. This paper summarizes various approaches of modeling customer bounded rationality, surveys how they are applied to relevant operations management settings, and presents the new insights obtained. We also suggest future research opportunities in this important area.

Keywords: Bounded rationality, behavioral operations, customer behavior, operations management

JEL Classification: C44, M11

Suggested Citation

Ren, Hang and Huang, Tingliang, Modeling Customer Bounded Rationality in Operations Management: A Review and Research Opportunities (March 28, 2017). Available at SSRN: https://ssrn.com/abstract=2942429 or http://dx.doi.org/10.2139/ssrn.2942429

Hang Ren

University College London - School of Management ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Tingliang Huang (Contact Author)

Haslam College of Business, University of Tennessee ( email )

Haslam College of Business
Stokely Management Center
Knoxville, TN 37000
United States

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
278
Abstract Views
1,172
rank
161,346
PlumX Metrics