![]() |
Max H BazermanProfessor at Harvard Business School
Country:
![]() |
Content:
- Max Bazerman - A Renowned Professor and Author
- Contributions and Achievements
- International Work
- The Bazerman Phenomenon
Max Bazerman - A Renowned Professor and Author
Max Bazerman is a famous professor from the Harvard Business School, known for his expertise in decision-making, negotiation, and ethics. He is also affiliated with the Kennedy School of Government.

Contributions and Achievements
Max H. Bazerman's name is widely recognized in financial circles. He has authored or co-authored nearly two dozen books, including the renowned "Blind Spots," written in collaboration with Ann Tenbrunsel. He serves on the editorial boards of several business-themed publications, such as "American Behavioral Scientist," "Journal of Management and Governance," "Mind and Society," and "Negotiations and Conflict Management Research."
From 2002 to 2008, Bazerman was consistently recognized as one of the top 40 authors, speakers, and educators. He has been awarded the "Teacher of the Year" title by the Executive Masters Program at the Kellogg School of Business. In 2006, Bazerman received an honorary doctorate from the London Business School, followed by being named one of the 100 most influential people in business ethics by Ethisphere in 2008. He has received numerous other awards, including the Wyss Award and the Williams Award.
International Work
Max Bazerman has had the opportunity to work around the world. His expertise has been sought after in countries such as Argentina, Australia, Austria, Barbados, Belgium, Brazil, Canada, Chile, Ecuador, France, Germany, India, and Israel.
The Bazerman Phenomenon
Max Bazerman is known for an interesting experiment that bears his name and is referred to as the "Bazerman Phenomenon." Each year, he offers his first-year students a chance to buy a $20 banknote. He simply takes it out of his pocket and puts it up for an improvised auction, starting at $1. Initially, the bidding is enthusiastic, with many students dreaming of acquiring $20 for just $5. However, the main condition of the auction is that the student who ends up in second place must give their final bid to the professor.
As the bidding progresses, students realize that it is best to stay balanced, and each rushes to make a bid to avoid being in second place and paying their bid to the professor. Surprisingly, the bidding goes beyond the face value of the banknote. Now, it is not the desire for profit that drives the players but the desire to lose as little money as possible. The bids continue to rise amidst the laughter of the smarter ones who withdrew from the game earlier.
Remarkably, Max Bazerman has managed to sell his $20 banknote for $50, $100, and even $200. His record-breaking auction stopped at $204. This is the essence of the Bazerman Phenomenon, the moral of which is that in situations involving the potential loss of money, individuals behave irrationally and may make absurd decisions. Bazerman offers his advice to anyone involved in financial risks: determine the amount of money you are willing to risk from the very beginning. It is crucial to be firm and always stop at that figure, no matter how attractive the next step may seem. This simple rule can help avoid significant financial catastrophes.
Some jokingly refer to this as the "Bazerman Trap," which anyone, even experienced businessmen, can fall into. However, it is essential not to accuse Max Bazerman of greed or profiting from poor students, as all the money raised from his auctions is donated to charity.