ATTENTION: The software behind KU ScholarWorks is being upgraded to a new version. Starting July 15th, users will not be able to log in to the system, add items, nor make any changes until the new version is in place at the end of July. Searching for articles and opening files will continue to work while the system is being updated.
If you have any questions, please contact Marianne Reed at mreed@ku.edu .
Cognitive Limitations and Investment "Myopia"
dc.contributor.author | Chi, Tailan | |
dc.contributor.author | Fan, Dashan | |
dc.date.accessioned | 2013-04-15T17:35:41Z | |
dc.date.available | 2013-04-15T17:35:41Z | |
dc.date.issued | 1997 | |
dc.identifier.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 | |
dc.identifier.uri | http://hdl.handle.net/1808/11012 | |
dc.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 | |
dc.description.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. | |
dc.language.iso | en | |
dc.publisher | Wiley | |
dc.subject | Cognitive bias | |
dc.subject | Investment Decision Making | |
dc.subject | Project management | |
dc.subject | Stochastic models | |
dc.title | Cognitive Limitations and Investment "Myopia" | |
dc.type | Article | |
kusw.kuauthor | Chi, Tailan | |
kusw.kudepartment | School of Business | |
kusw.oastatus | fullparticipation | |
dc.identifier.doi | 10.1111/j.1540-5915.1997.tb01301.x | |
kusw.oaversion | Scholarly/refereed, author accepted manuscript | |
kusw.oapolicy | This item meets KU Open Access policy criteria. | |
dc.rights.accessrights | openAccess |