Improving Managerial Decision-Making: Molecules about Decision Biases and First Application

Our intention is to provide a canonical model (i.e., molecule) to enhance common decision making formulation in system dynamics models. In others words, we contribute to standardize decision making formulations in mathematical models. Our intention is to describe a few biases in mathematical terms in order to overcome the issue of de-scribing biases with different terms. We specifically concentrate on the Kahneman's reference point theory as a basis for several decision making biases.