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Behavioral Decision Makings: Reconciling Behavioral Economics and Decision Systems

Decision-making (DM) contains three main tasks: ranking, classification, and choice, which accompanies with the development of human being. Ranking and classification are two fundamental DM tasks that have been well studied in fields of information systems, computer sciences, and business analytics. Decision systems are the typical field for this branch. Another branch is choice that has been formally studied in economics. This paper reconciles the substances of decision systems and economics. As a result, a new field, behavioral decision making (BDM), is put forward and outstanding. We review noteworthy transitions from neoclassical economics to behavioral economics in a historical perspective. We examine the principles of economic and psychology into decision systems researches. Behavioral and experimental economics advocate bounded rationality and fairness, which challenge absolute rationality and self-interest assumed by neoclassical economics. BDM could be the best direction of bridging neoclassical sides and behavioral sides, which bring new insights into the communities of information management and systems. A full picture of transitions from people to systems (machines) is exhibited after incorporating behavioral and psychological principles.