Organisations face the challenge of controlling the tendency of executives competing for resources to present overly optimistic plans. A well-run organisation will reward planners for precise execution and penalise them for failing to anticipate difficulties…
[M]ost people don’t view a spike in demand as an acceptable excuse to raise prices. Such judgments are puzzling to economists, business executives and M.B.A. students… Why can’t managers anticipate that their actions might provoke such outrage? The best explanation may be that people’s fairness judgments are gut reactions, not economic analyses.