scholarly journals Bias and Negligence with Freedom of Information

2019 ◽  
Vol 129 (624) ◽  
pp. 2979-2998
Author(s):  
Rossella Argenziano ◽  
Helen Weeds
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Information Acquisition ◽  
Freedom Of Information ◽  
Policy Action ◽  
Costly Information ◽  
The Cost

Abstract We analyse decision-making in the presence of Freedom of Information (FOI) rules. A decision-maker chooses whether to acquire costly information to inform his decision regarding a policy action. If information is not disclosed voluntarily a monitor may open a costly investigation, using FOI to access the information. A finding of biased decision-making or negligence in information acquisition generates a reward to the monitor and a penalty to the decision-maker. We find that strengthening FOI to reduce the cost of investigation may increase negligence without necessarily reducing bias. Moreover, increasing the reward for discovering negligence can paradoxically increase negligence in equilibrium.

scholarly journals Strategic Information Acquisition and Transmission

2016 ◽  
Vol 8 (3) ◽  
pp. 119-155 ◽  
Author(s):  
Rossella Argenziano ◽  
Sergei Severinov ◽  
Francesco Squintani
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Information Acquisition ◽  
Organization Design ◽  
Strategic Communication ◽  
Strategic Information ◽  
Costly Information ◽  
Design Communication

This paper explores the implications of costly information acquisition in a strategic communication setting. We show that equilibrium decisions based on a biased expert's advice may be more precise than when information is directly acquired by the decision maker, even if the expert is not more efficient than the decision maker at acquiring information. This result bears important implications for organization design. Communication by an expert to a decision maker may often outperform delegation of the decision-making authority to the expert, as well as centralization by the decision maker of both information acquisition and decision-making authority. (JEL C72, D23, D82, D83)

Awais Model Farms: Crop Decision

2018 ◽  
Vol 15 (2) ◽  
pp. 110-116
Author(s):  
Kamran A. Chatha ◽  
Zunair Talat ◽  
Abdullah Naeem ◽  
Shazib E. Shaikh
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Expected Profit ◽  
Decision Making Process ◽  
Fall Season ◽  
To Come ◽  
The Cost

Saeed Anwar, the sole proprietor of Awais Model Farms (AMF), had to make a decision regarding whether to grow corn or cotton in the fall season. Although he knew the key parameters affecting the decision, he was not able to reach any conclusion because of the numerous uncertainties involved in the decision-making process. His son, Awais Saeed, tried to come up with an Excel model to help his father make the decision. Awais discussed the key uncertainties with experts (farmers) and gathered all the cost and revenue data. The decision maker, Saeed Anwar, wanted to ascertain which crop he should grow on the basis of greater expected profit.

scholarly journals Delegation to a Group

2020 ◽  
Author(s):  
Sebastian Fehrler ◽  
Moritz Janas
Keyword(s):  
Decision Making ◽  
Decision Analysis ◽  
Information Acquisition ◽  
Information Aggregation ◽  
The Other ◽  
Trade Off ◽  
Individual Level ◽  
The One ◽  
The Individual ◽  
The Cost

We study the choice of a principal to either delegate a decision to a group of careerist experts or to consult them individually and keep the decision-making power. Our model predicts a trade-off between information acquisition and information aggregation. On the one hand, the expected benefit from being informed is larger in case the experts are consulted individually. Hence, the experts either acquire the same or a larger amount of information, depending on the cost of information, than in case of delegation. On the other hand, any acquired information is better aggregated in the case of delegation, in which experts can deliberate secretly. To test the model’s key predictions, we run an experiment. The results from the laboratory confirm the predicted trade-off despite some deviations from theory on the individual level. This paper was accepted by Yan Chen, decision analysis.

Model and Technique over Software Requirement Prioritization

2018 ◽  
Vol 6 (2) ◽  
Author(s):  
Khurram Ejaz ◽  
Ayesha Amjad
Keyword(s):  
Decision Making ◽  
Customer Satisfaction ◽  
Decision Maker ◽  
It Use ◽  
New Approach ◽  
Cost And Benefit ◽  
Proposed Model ◽  
The Cost ◽  
The Given ◽  
Requirement Prioritization

<p>Requirement prioritization play a significant part in overcoming problems related to requirements and it use to increase customer satisfaction. Requirement prioritization is use to verify the correct functionality of product and guarantee that the software is built within the given constrains, like budget, cost, value, time and etc. Requirements prioritization reliant on the specific requirements of customer along with prediction of importance and cost of each requirements. The approaches proposed in modern days to prioritize requirements have not been widely used because of its complexity, its inconsistency and its time-consuming factor. This paper represents an analysis on obtainable prioritization techniques based on cost and benefit and drawbacks evaluation of requirements. This paper represents a new approach of requirement prioritization, which can be easily managed, implemented and used as decision-making device by decision maker for requirement prioritization. It also overcomes the drawback of existing requirement approaches. The results of newly proposed approach shows that<br />proposed model for requirement prioritization is simple and is useful for more refined critical decisions of prioritization, keeping in view the cost and benefit.</p>

scholarly journals Pareto Optimal Decisions in Multi-Criteria Decision Making Explained with Construction Cost Cases

Symmetry ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 46
Author(s):  
Hubert Anysz ◽  
Aleksander Nicał ◽  
Željko Stević ◽  
Michał Grzegorzewski ◽  
Karol Sikora
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Pareto Optimal ◽  
Multi Criteria Decision Making ◽  
Ideal Solution ◽  
Optimal Decisions ◽  
Cost Criterion ◽  
The Cost ◽  
Financial Result ◽  
The Ideal

In multi-criteria decision-making (MCDM) problems the decision-maker is often forced to accept a not ideal solution. If the ideal choice exists, it would be certainly chosen. The acceptance of a non- ideal solution leads to some inadequate properties in the chosen solution. MCDM methods help the decision-maker to structure his needs considering different units, in which the properties of the solutions are expressed. Secondly, with MCDM tools the assessment of the available solutions can be calculated with consideration of the decision-maker’s needs. The incorporation of the cost criterion into the decision maker’s preferences calculation, and the solution assessment calculation, deprives the decision-maker of the ability to calculate the financial result of the decision he must make. A new multi-criteria decision making with cost criterion analysed at the final stage (MCDM-CCAF) method is developed based on principle of Pareto optimal decisions. It is proposed to exclude the cost criterion from the MCDM analysis and consider it at the final phase of the decision-making process. It is illustrated by example solutions with consideration of cost criterion and without it. It is proposed to apply the invented post-processing method to all MCDM analyses where the cost criterion of analysed variants is considered.

Emotional Choices

2018 ◽  
Author(s):  
Robin Markwica
Keyword(s):  
Decision Making ◽  
Choice Behavior ◽  
Choice Theory ◽  
Cuban Missile Crisis ◽  
Coercive Diplomacy ◽  
The Core ◽  
Present Book ◽  
Action Model ◽  
The Cost ◽  
Dynamic Interplay

In coercive diplomacy, states threaten military action to persuade opponents to change their behavior. The goal is to achieve a target’s compliance without incurring the cost in blood and treasure of military intervention. Coercers typically employ this strategy toward weaker actors, but targets often refuse to submit and the parties enter into war. To explain these puzzling failures of coercive diplomacy, existing accounts generally refer to coercers’ perceived lack of resolve or targets’ social norms and identities. What these approaches either neglect or do not examine systematically is the role that emotions play in these encounters. The present book contends that target leaders’ affective experience can shape their decision-making in significant ways. Drawing on research in psychology and sociology, the study introduces an additional, emotion-based action model besides the traditional logics of consequences and appropriateness. This logic of affect, or emotional choice theory, posits that target leaders’ choice behavior is influenced by the dynamic interplay between their norms, identities, and five key emotions, namely fear, anger, hope, pride, and humiliation. The core of the action model consists of a series of propositions that specify the emotional conditions under which target leaders are likely to accept or reject a coercer’s demands. The book applies the logic of affect to Nikita Khrushchev’s decision-making during the Cuban missile crisis in 1962 and Saddam Hussein’s choice behavior in the Gulf conflict in 1990–91, offering a novel explanation for why coercive diplomacy succeeded in one case but not in the other.

scholarly journals Economic Value of Terminal Aerodrome Forecasts at Incheon Airport, South Korea

2021 ◽  
Vol 13 (12) ◽  
pp. 6965
Author(s):  
In-Gyum Kim ◽  
Hye-Min Kim ◽  
Dae-Geun Lee ◽  
Byunghwan Lim ◽  
Hee-Choon Lee
Keyword(s):  
Decision Making ◽  
South Korea ◽  
Co2 Emissions ◽  
Fuel Efficiency ◽  
Economic Value ◽  
Analysis Data ◽  
Annual Average ◽  
Loss Model ◽  
Total Budget ◽  
The Cost

Meteorological information at an arrival airport is one of the primary variables used to determine refueling of discretionary fuel. This study evaluated the economic value of terminal aerodrome forecasts (TAF), which has not been previously quantitatively analyzed in Korea. The analysis data included 374,716 international flights that arrived at Incheon airport during 2017–2019. A cost–loss model was used for the analysis, which is a methodology to evaluate forecast value by considering the cost and loss that users can expect, considering the decision-making result based on forecast utilization. The value was divided in terms of improving fuel efficiency and reducing CO2 emissions. The results of the analysis indicate that the annual average TAF value for Incheon Airport was approximately 2.2 M–20.1 M USD under two hypothetical rules of refueling of discretionary fuel. This value is up to 26.2% higher than the total budget of 16.3 M USD set for the production of aviation meteorological forecasts by the Korea Meteorological Administration (KMA). Further, it is up to 10 times greater than the 2 M USD spent on aviation meteorological information fees collected by the KMA in 2018.

scholarly journals The Analysis of Small Investors’ Demands on a Thermal Insulation System for a Family House: A Case Study

2021 ◽  
Vol 13 (5) ◽  
pp. 2491
Author(s):  
Alena Tažiková ◽  
Zuzana Struková ◽  
Mária Kozlovská
Keyword(s):  
Decision Making ◽  
Thermal Insulation ◽  
Construction Cost ◽  
Environmental Cost ◽  
Multi Criteria Decision Making ◽  
Insulation System ◽  
Insulation Systems ◽  
Small Investors ◽  
The Cost ◽  
Family House

This study deals with small investors’ demands on thermal insulation systems when choosing the most suitable solution for a family house. By 2050, seventy percent of current buildings, including residential buildings, are still expected to be in operation. To reach carbon neutrality, it is necessary to reduce operational energy consumption and thus reduce the related cost of building operations and the cost of the life cycle of buildings. One solution is to adapt envelopes of buildings by proper insulation solutions. To choose an optimal thermal insulation system that will reduce energy consumption of building, it is necessary to consider the environmental cost of insulation materials in addition to the construction cost of the materials. The environmental cost of a material depends on the carbon footprint from the initial origin of the material. This study presents the results of a multi-criteria decision-making analysis, where five different contractors set the evaluation criteria for selection of the optimal thermal insulation system. In their decision-making, they involved the requirements of small investors. The most common requirements were selected: the construction cost, the construction time (represented by the total man-hours), the thermal conductivity coefficient, the diffusion resistance factor, and the reaction to fire. The confidences of the criteria were then determined with the help of the pairwise comparison method. This was followed by multi-criteria decision-making using the method of index coefficients, also known as the method of basic variant. The multi-criteria decision-making included thermal insulation systems based on polystyrene, mineral wool, thermal insulation plaster, and aerogels’ nanotechnology. As a result, it was concluded that, currently, in Slovakia, small investors emphasize the cost of material and the coefficient of thermal conductivity and they do not care as much about the carbon footprint of the material manufacturing, the importance of which is mentioned in this study.

scholarly journals Application of the theory of decision making under risk and uncertainty at modelling of costs

2010 ◽  
Vol 56 (No. 5) ◽  
pp. 201-208 ◽  
Author(s):  
M. Beranová ◽  
D. Martinovičová
Keyword(s):  
Decision Making ◽  
Financial Accounting ◽  
Cost Functions ◽  
Risk And Uncertainty ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Bayesian Theorem ◽  
Long Run ◽  
Short Run ◽  
The Cost

The costs functions are mentioned mostly in the relation to the Break-even Analysis where they are presented in the linear form. But there exist several different types and forms of cost functions. Fist of all, it is necessary to distinguish between the short-run and long-run cost function that are both very important tools of the managerial decision making even if each one is used on a different level of management. Also several methods of estimation of the cost function's parameters are elaborated in the literature. But all these methods are based on the past data taken from the financial accounting while the financial accounting is not able to separate the fixed and variable costs and it is also strongly adjusted to taxation in the many companies. As a tool of the managerial decision making support, the cost functions should provide a vision to the future where many factors of risk and uncertainty influence economic results. Consequently, these random factors should be considered in the construction of cost functions, especially in the long-run. In order to quantify the influences of these risks and uncertainties, the authors submit the application of the Bayesian Theorem.

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