Designing an Organizational Decision-Making Mechanism in Iran’s Oil and Gas Industry: A Behavioral Game Theory Approach

Mojtaba Asgharnia; Vahid Mahmodi; Ezzatollah Abbasian

Authors

Mojtaba Asgharnia PhD Student , Department of Financial management and insurance , Faculty of Management , Tehran University , Tehran , Iran Author https://orcid.org/0009-0006-5508-782X
Vahid Mahmodi Professor, Department of Financial markets and institutions , Faculty of Management , Tehran University , Tehran , Iran https://orcid.org/0000-0002-3197-8218
Ezzatollah Abbasian Professor, Department of Financial engineering , Faculty of Management , Tehran University , Tehran , Iran Author https://orcid.org/0000-0001-8364-6461

Keywords:

behavioral economics, organizational decision-making, corporate governance, game theory, experimental economics, oil and gas industry

Abstract

The present study investigates organizational decision-making mechanisms and strategic contracts in Iran’s oil and gas industry through the lens of behavioral game theory. Given the complexity and significance of decision-making in this industry, the study was conducted using a qualitative, exploratory approach. Data were collected through observation, in-depth interviews with experts in Iran’s oil and gas industry, and simulations of managerial decision-making through experimental tests administered to students at universities in Tehran. The findings indicated that improving the decision-making process requires appropriate infrastructures for selecting qualified individuals, establishing suitable mechanisms at both micro and macro levels, and presenting information within an appropriate framework as structural controls. In addition, three behavioral dimensions were identified as behavioral controls: continuous vigilance during decision-making, accurate understanding and interpretation of relevant narratives and texts, and the resolution of conflicts of interest at personal and organizational levels. The results demonstrate that, given the complex and sensitive nature of decision-making in strategic contracts, the application of this model can significantly enhance the efficiency and effectiveness of managerial decisions and strengthen overall organizational performance.

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