KUKU

KU ScholarWorks

  • myKU
  • Email
  • Enroll & Pay
  • KU Directory
    • Login
    View Item 
    •   KU ScholarWorks
    • Business, School of
    • School of Business Scholarly Works
    • View Item
    •   KU ScholarWorks
    • Business, School of
    • School of Business Scholarly Works
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Cognitive Limitations and Investment "Myopia"

    Thumbnail
    View/Open
    Chi1997DS.pdf (641.3Kb)
    Issue Date
    1997
    Author
    Chi, Tailan
    Fan, Dashan
    Publisher
    Wiley
    Type
    Article
    Article Version
    Scholarly/refereed, author accepted manuscript
    Metadata
    Show full item record
    Abstract
    Optimization of investment decisions in an uncertain and dynamically evolving environment is difficult due to the limitations of the decision maker’s cognitive capacity. Thus, actual investment decisions may deviate from the dynamically optimal decision rule. This paper investigates how a potential investment rule bias affects the expected payoff from a project that has an uncertain development time and an uncertain completion cost. The result shows that the presence of a potential bias in the adopted decision rule dissipates project value and that the dissipating effect is greater for a longer-term project if the completion cost is an increasing function of the time to completion.
    Description
    This is the author's final draft. The publisher's official version is available electronically from: http://dx.doi.org/10.1111/j.1540-5915.1997.tb01301.x
    URI
    http://hdl.handle.net/1808/11012
    DOI
    https://doi.org/10.1111/j.1540-5915.1997.tb01301.x
    Collections
    • Center for East Asian Studies Scholarly Works [351]
    • School of Business Scholarly Works [212]
    Citation
    Chi, Tailan. (1997) Cognitive Limitations and 'Investment Myopia'. Decision Sciences, 28 (1), 27-57. http://dx.doi.org/10.1111/j.1540-5915.1997.tb01301.x

    Items in KU ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.


    We want to hear from you! Please share your stories about how Open Access to this item benefits YOU.


    Contact KU ScholarWorks
    785-864-8983
    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    785-864-8983

    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    Image Credits
     

     

    Browse

    All of KU ScholarWorksCommunities & CollectionsThis Collection

    My Account

    LoginRegister

    Statistics

    View Usage Statistics

    Contact KU ScholarWorks
    785-864-8983
    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    785-864-8983

    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    Image Credits
     

     

    The University of Kansas
      Contact KU ScholarWorks
    Lawrence, KS | Maps
     
    • Academics
    • Admission
    • Alumni
    • Athletics
    • Campuses
    • Giving
    • Jobs

    The University of Kansas prohibits discrimination on the basis of race, color, ethnicity, religion, sex, national origin, age, ancestry, disability, status as a veteran, sexual orientation, marital status, parental status, gender identity, gender expression and genetic information in the University’s programs and activities. The following person has been designated to handle inquiries regarding the non-discrimination policies: Director of the Office of Institutional Opportunity and Access, IOA@ku.edu, 1246 W. Campus Road, Room 153A, Lawrence, KS, 66045, (785)864-6414, 711 TTY.

     Contact KU
    Lawrence, KS | Maps