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Behavioral Obstacles in a Metal Mechanical Industry

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Type: Conference Paper
Author: Chong, Mario
Conference: VIII SCALE Latin America Academic Workshop
Location: Lima, Perú
Conf. Date: November 5-6
Date: 2013
URI: https://hdl.handle.net/10535/9422
Sector: Social Organization
Subject(s): experimental economics
coordination game
Abstract: "One consequence of poor coordination is the variability of the demand at the next upstream level in the supply chain, known as bullwhip effect. The experiment is focused on a business game known as the beer game, which was applied into a metal mechanical industry. The main difference of this experiment, with other studies, is the choice of participants (company staff performing similar roles). The experimental results confirm the value of the information, its effect on profitability and business efficiency, avoiding unnecessary costs and inadequate management of resources. This experiment shows the behavioral obstacles, because all the participants know how the other participants react in similar situation and try to use this knowledge to win the game. According to these results, they incorporate sustainability in their supplying chain, thus management practices need time and trust to become a driver for bringing positive changes in the society."

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