Sie befinden Sich nicht im Netzwerk der Universität Paderborn. Der Zugriff auf elektronische Ressourcen ist gegebenenfalls nur via VPN oder Shibboleth (DFN-AAI) möglich. mehr Informationen...
The sophisticated decision maker: All work and no pay?
Ist Teil von
Omega (Oxford), 1995-02, Vol.23 (1), p.1-11
Ort / Verlag
Exeter: Elsevier Ltd
Erscheinungsjahr
1995
Link zum Volltext
Quelle
Alma/SFX Local Collection
Beschreibungen/Notizen
We consider the effect on profitability of using increasingly sophisticated regression-based methods of estimating and interpreting the parameters of the demand curve facing the neoclassical firm that newly enters an existing product market. Through simulation it is shown that in this particular setting the differences in the firm's subsequent profit performance over the range of the different methods are
de minimus. The demands these methods make upon the decision maker, however, differ substantially. These results prompt us to question whether comparable results in alternative real-world settings might not be more pervasive than we as theoreticians would like to believe is the case. We speculate that all too often the profit payoff from the use of even-more-sophisticated decision-making techniques will fail to justify the required effort. And, further, that even managers who are well versed in sophisticated decision-making procedures are not unlikely to find their talents stretched to the lmit well before they reach the point of diminishing returns.