Information cost and innovation adoption policies
Article Abstract:
The manager of a firm facing a decision problem must either adopt an innovation of uncertain profitability, or obtain some information and then decide to accept or reject the innovation. The decision to obtain information involves either waiting to get costless information or buying additional information. The optimal policy in this situation may be: wait, buy, wait, buy, and adopt. This policy indicates that managerial decision making in considering innovations is complex when there are both free and costly sources of information available.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1988
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Towards a heuristic theory of problem structuring
Article Abstract:
The problem solving paradigm can be used along with decision making research to understand and improve action-oriented managerial thought. Researchers have devised the concept of 'problem structure' and used it in the development of an informal theory of problem structuring. Pertinent approaches to real world managerial problems have been proposed and several structuring methodologies have been assessed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1988
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