haku: @indexterm PROJECT MANAGEMENT / yhteensä: 904
viite: 276 / 904
Tekijä: | Chi, T. Fan, D. |
Otsikko: | Cognitive limitations and investment "myopia" |
Lehti: | Decision Sciences
1997 : WINTER, VOL. 28:1, p. 27-57 |
Asiasana: | BIAS COGNITION DECISION MAKING INVESTMENTS PROJECT MANAGEMENT STOCHASTIC PROCESSES |
Kieli: | eng |
Tiivistelmä: | In an uncertain and dynamically evolving environment, optimixation of investment decisions is difficult due to the limitations of the decision maker's cognitive capacity. This article explores how a potential investment rule bias can affect the expected payoff from a project that has an uncertain development time and an uncertain completion cost. The results show that in the adopted decision rule the presence of a potential bias dissipates project value. For a longer term project the dissipating effect is greater if the completion cost is an increasing function of the completion time. |
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