Improving Decision-Making in Resource Allocation: Evidence from Inpatient Admission Decisions

Hummy Song, Operations, Information and Decisions, The Wharton School

Abstract: Routing mechanisms are crucial for efficiently matching specialized resources to customer needs at the lowest cost. Improving allocation to these specialized resources, then, is of first-order concern for many organizations. But when human decision-makers are tasked with allocation in a complex environment, it can be challenging to understand their decision processes and design systems that enhance their decision quality. Leveraging rich data derived from electronic medical records, we explore how, in the context of physicians making routing decisions of patients from the ED to inpatient medical specialties, decision-makers incorporate new information and adapt their decision-making processes.