We are exploring the decision making process

In the article for Perpetuum, Vojtech Zíka, Managing Director of the Center for Behavioral Experiments in Prague, answers questions about his job and about application of behavioral sciences. He explained the way of exploring the decission making process in economics and he introduced the new field of evidance-based management. Managers are very often doing important decisions based on their feelings, intuition and their expectations are overoptimistic. The knowledge from behavioral sciences can be used as a tool for making better decisions.

For more information click on the link below:


Lecture at IES: Behavioral Public Policy

On Tuesday April 25th at 18:30, Vojtěch Zíka will give a lecture at the Institute for Economic Studies of the Faculty of Social Sciences at the Charles University. He will introduce the students to the topic of Behavioral Economics, but especially to the behavioral apporach to policy making. This topic is often neglected by public entitites wherefore impracticable measures and laws are designed.

For more information, head to the facebook event of a student society e-klub.

Use of behavioral economics? Vojtěch Zíka as a panellist in a debate

On Tuesday March 21 on the premises of the University of Economics, Vojtěch Zíka has taken a part in a panel discussion on the topic of Use of Behavioral Economics. Thereby he has accepted an invitation by a student organisation RethinkingEconomics.cz to clarify to students the future bearing of this developing field alongside Lukáš Tóth from Behavio.

If you are interested in the topic, do not miss out on a conference we organize on the topic of Modern Policy Making. For more information, head to www.pcbs.cz or to our facebook event.

Vojtěch Zíka for zonky.cz: We hate changes. That’s why we keep throwing money down the drain

Is it natural for us not to make changes? Why is decision making so hard? How does our community or a system of rewards influence us? Vojtěch Zíka has answered not only these questions in an interview for zonky.cz, in which he has mentioned what mistakes every one of us makes in everyday decisions as well as in important choices such as what bank to use. He has used a number of examples from practice along with findings gained through the experimental approach to psychology and economics.

You can read the entire interview at this link.

CEBEX at the conference Hopes and Expectations

On March 20th 2017, the Center for Behavioral Experiments has taken part in the conference Hopes and Expectations, which is dedicated to establishing the topics of election programs of center-right political parties in the field of health care and social policy.

Vojtěch Zíka has introduced the concept of behaviorally informed public policies as well as their examples which have been successfully implemented abroad.

The conference has been held on March 20th 2017 on the premises of the CEVRO Institute. All information including the program can be found on its facebook page.

Seminar for students in Teplice

CEBEX has taken part on organising an expert seminar at two secondary schools in Teplice (Střední průmyslová škola and Obchodní akademie). The topic of Modern policy making was designed specifically for students of the final year, who are now considering their next study opportunities. Altogether roughly 70 students have taken part on both the seminars.

Optimism bias and overconfidence effects in managerial decision making

This article presents a review on how the optimism bias and overconfidence effects might affect the performance of an individual, and in particular, of a manager or a business owner. The former one appears to be an evolutionary adaptation responsible for a good mental health, and as such is being considered as one of the most consistent, prevalent, and robust biases documented in psychology and behavioral economics. Together with the latter one, these cognitive biases might result in persistent impression that chosen strategy is reasonable, even if a statistical evidence or past experience indicate the contrary. The paper also offers several ideas how to increase performance by reducing effects of an excessive optimism and confidence, even though sometimes just the mere awareness of them can do the trick.

Citation: Zíka, V., & Koblovský, P. Optimism bias and overconfidence effects in managerial decision making. 2016. Conference Paper.

Behavioral Economics and Customers’ Decisions at Energy Market

Financial planning is undoubtedly a useful tool to enhance an efficiency of both market sides and thus efficiency of the whole market. However, it is essential to realize that planning can fail in the face of a reliance on a neoclassical cost-benefit analysis while ignoring findings of the behavioral economics. Electricity markets, where despite recent tendencies to make such markets more competitive, consumers seem not to switch their tariffs as much as standard analysis would suggest. It appears that switching decisions are strongly influenced by several psychological factors like status-quo, time inconsistency and mental accounting. This paper presents a review of works on mentioned factors with aim to provide planners on the supply side with a theoretical background how to incorporate such factors into their cost-benefit analysis. By doing so, they can not only make the market more effective but will also improve welfare of their consumers.

Citation: Zíka, V., & Koblovský, P. Behavioral economics and customers’ decisions at energy market (2016). Conference paper.