Experimental Evidence on Decision Making Under Information Asymmetry

2015 ◽  
Author(s):  
William Schmidt ◽  
Ryan W. Buell
Keyword(s):  
Decision Making ◽  
Information Asymmetry ◽  
Experimental Evidence

Blockchain in Supply Chain: Case Study of Lottemart Ciputat

2019 ◽  
Vol 5 (1) ◽  
pp. 38-49 ◽  
Author(s):  
B. K. Handoyo ◽  
M. R. Mashudi ◽  
H. P. Ipung
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Information Asymmetry ◽  
New Technology ◽  
Business Case ◽  
Analysis Method ◽  
Chain Management ◽  
Production Processes

Current supply chain methods are having difficulties in resolving problems arising from the lack of trust in supply chains. The root reason lies in two challenges brought to the traditional mechanism: self-interests of supply chain members and information asymmetry in production processes. Blockchain is a promising technology to address these problems. The key objective of this paper is to present qualitative analysis for blockchain in supply chain as the decision-making framework to implement this new technology. The analysis method used Val IT business case framework, validated by the expert judgements. The further study needs to be elaborated by either the existing organization that use blockchain or assessment by the organization that will use blockchain to improve their supply chain management.

Experimental Evidence of Pooling Outcomes Under Information Asymmetry

2017 ◽  
Vol 63 (5) ◽  
pp. 1586-1605 ◽  
Author(s):  
William Schmidt ◽  
Ryan W. Buell
Keyword(s):  
Information Asymmetry ◽  
Experimental Evidence

Do informal reasoning fallacies really shape decisions? Experimental evidence

2021 ◽  
pp. 104346312110336
Author(s):  
Lucie Vrbová ◽  
Kateřina Jiřinová ◽  
Karel Helman ◽  
Hana Lorencová
Keyword(s):  
Decision Making ◽  
Experimental Evidence ◽  
Strong Support ◽  
Slippery Slope ◽  
Paired Comparisons ◽  
Anecdotal Evidence ◽  
Informal Reasoning ◽  
Cognitive Reflection ◽  
The Relationship ◽  
Fallacious Reasoning

Informal reasoning fallacies belong to a persuasive tactic, leading to a conclusion that is not supported by premises but reached through emotions and/or misleading and incomplete information. Previous research focused on the ability to recognize informal reasoning fallacies. However, the recognition itself does not necessarily mean immunity to their influence on decisions made. An experiment was designed to study the relationship between the presence of informal reasoning fallacies and a consequent decision. Having conducted paired comparisons of distributions, we have found some support for the hypothesis that informal reasoning fallacies affect decision-making more substantially than non-fallacious reasoning—strong support in the case of a slippery slope, weak in that of appeal to fear, anecdotal evidence argument defying evaluation. Numeracy and cognitive reflection seem to be associated with higher resistance to the slippery slope, but do not diminish appeal to fear.

scholarly journals Chatbots by business vis-à-vis consumers: A new form of power and information asymmetry

2021 ◽  
Vol 129 ◽  
pp. 05002
Author(s):  
Zanda Davida
Keyword(s):  
Artificial Intelligence ◽  
Decision Making ◽  
Information Asymmetry ◽  
Value Added ◽  
Legal Framework ◽  
Consumer Law ◽  
Study Results ◽  
The Sixties ◽  
Guidance Documents ◽  
New Form

Research background: The first notable early chatbots were created in the sixties, but the growing use of artificial intelligence (AI) has powered them significantly. Studies show that basically chatbots are created and used for purposes by government and business, mostly in consumer service and marketing. The new Proposal of the Artificial intelligence act aims to promote the uptake of AI and address the risks associated with certain uses of such technology. However, the act contains only minimum transparency obligation for some specific AL systems such as chatbots. Purpose of the article: In light of this issue, the article aims to discuss how existing European Union (EU) consumer law is equipped to deal with situations in which the use of chatbots can pose the risks of manipulation, aggressive commercial practices, intrusion into privacy, exploitation of a consumer’s vulnerabilities and algorithmic decision making based on biased or discriminatory results. Methods: The article will analyse the legal framework, compare guidance documents and countries’ experiences, study results of different consumer behavior researches and scientific articles. Findings & Value added: The article reveals several gaps in current EU consumer law and discusses the flaws of proposing legislation (particularly the Proposal for an Artificial intelligence act) regarding relations between business and consumers.

CEO social capital and asset sell-offs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Danso ◽  
Margarita Kaprielyan ◽  
Md Miran Hossain
Keyword(s):  
Decision Making ◽  
Social Capital ◽  
Information Asymmetry ◽  
Abnormal Returns ◽  
Chief Executive ◽  
Multivariate Regression Analysis ◽  
Market Model ◽  
Good Decision ◽  
Content Type ◽  
Announcement Returns

PurposeRecent studies explore how chief executive officer (CEO) social capital affects corporate decision-making. Well-connected CEOs can have greater access to information, which can lead to better corporate decisions or permit them to amass power from hierarchy status and make self-serving decisions. This study examines whether investors perceive CEO social capital as a signal of good decision-making (assuming information asymmetry) surrounding asset sell-off events.Design/methodology/approachThe authors use multivariate regression analysis to examine the effect of CEO social capital on the cumulative abnormal returns (CARs) of the asset buyers and sellers. CARs are estimated using a market model in the period proximate to asset sell-off announcements.FindingsThe authors find that CEO social capital is positively associated with announcement returns of the asset sellers. Moreover, the positive effect of CEO social capital on announcement returns is more pronounced for sellers facing greater information asymmetry. An analysis of post-announcement stock performance reveals that the seller CEO social capital is associated with additional value generated for the shareholders of the seller after a month from the announcement date, especially if the transaction price is disclosed. Overall, findings are consistent with the argument that CEO social capital provides value in high information asymmetry environment.Originality/valueTo the authors' knowledge this is the first study to examine the effect of CEO social capital on the shareholders' wealth created by divestitures.

Is the Illusion of Authenticity Beneficial? Merely Perceiving Decisions as Guided by the True Self Enhances Decision Satisfaction

2020 ◽  
Vol 12 (1) ◽  
pp. 80-90
Author(s):  
Jinhyung Kim ◽  
Andrew G. Christy ◽  
Grace N. Rivera ◽  
Joshua A. Hicks ◽  
Rebecca J. Schlegel
Keyword(s):  
Decision Making ◽  
Experimental Evidence ◽  
Optimal Strategy ◽  
True Self ◽  
Positive Functioning ◽  
Lay Theory ◽  
Decision Satisfaction ◽  
Insight Into ◽  
Perceptual Mechanism

Many people endorse a “true-self-as-guide” (TSAG) lay theory of decision-making that suggests following one’s true self is an optimal strategy for making decisions. Across five studies ( N = 1,320), we test whether perceived use of the true self enhances decision satisfaction. Study 1 provides correlational evidence. Studies 2 and 3 provide experimental evidence that participants felt more satisfied with choices made under TSAG instructions, compared to alternate strategies. Critically, we argue that perceived use of the true self enhances decision satisfaction regardless of whether consulting the true self actually influences the decision made. Studies 4 and 5 find evidence in support of this perceptual mechanism. This research provides insight into one way by which people find satisfaction amid life’s uncertainty, extending existing research on the role of the concept of true selves in positive functioning.

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