Cognitive limitations and investment "myopia."
Article Abstract:
An stochastic optimization model evaluates investment behavior of decision makers over short-term and long-term projects. It shows why decisions based on past experiences and optimistic estimates of projects' development time lead to development time and cost losses. It also shows that in full accounting of the cost of potential human errors and biases in investment decision making, a myopic appearance is demonstrated by a rational decision rule for the screening and management of uncertain projects.
Publication Name: Decision Sciences
Subject: Business, general
ISSN: 0011-7315
Year: 1997
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The effectiveness of different representations for managerial problem solving: comparing tables and maps
Article Abstract:
Research was conducted to test the utility of maps and tables in problem solving exercises. The test was conducted to test the utility of Geographical Information Systems, which presents information both in tabular and geographical form. Tests on proximity and adjacency relationships were better and faster answered in the map form than in the tabular form. The test underscores the importance of the medium of information representation in facilitating problem-solving.
Publication Name: Decision Sciences
Subject: Business, general
ISSN: 0011-7315
Year: 1997
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Representations as decision aids: the asymmetric effects of words and numbers on auditors' inherent risk judgment
Article Abstract:
Numeric representation of risk judgments improves decision makers' communication of their judgments. This kind of representation in decision information greatly affects judgment processes and performance. Experimental studies on financial auditors which provided cue information in numbers for a manufacturing firm reveal a numerical representation of risk judgment that result to precise decision and assessment of risks.
Publication Name: Decision Sciences
Subject: Business, general
ISSN: 0011-7315
Year: 1997
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