Author: David HirshleiferPublisher:
ISBN:
Category :
Languages : en
Pages : 50
Book Description
INSTITUTIONAL MEMORY, INERTIA AND IMPULSIVENESS, WORKING PAPER #9405-32R1
Author: DAVID HIRSHLEIFER & IVO WELCHPublisher:
ISBN:
Category :
Languages : en
Pages : 46
Book Description
Institutional Memory, Inertia, and Impulsiveness
Author: David HirshleiferInstitutional Memory, Inertia, and Impulsiveness
Author: David A. HirshleiferPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper examines how imperfect institutional memory affects organizational decisions. In our model, new managers are aware of their firm's previous actions but not the rationale for these actions. If the environment is stable, we find that a firm that has followed an old investment policy long enough and then changes management generally exhibits greater INERTIA, that is a greater tendency to follow old actions than a firm in which the old manager with full memory would have continued. On the other hand, if the environment is volatile or if the old manager has followed a policy only briefly, previous investment decisions are not very informative, and new managers can be excessively IMPULSIVE (prone to follow their latest information with less regard to history). The model implies relationships among various variables, such as the frequency of policy changes (e.g., reversal of project choices), managerial turnover, the quality of record-keeping, the history of the project, and the stability of the underlying environment.
Clustering Dynamics and the Location of High-Tech-Firms
Author: Mario A. MaggioniPublisher: Springer Science & Business Media
ISBN: 9783790814316
Category : Business & Economics
Languages : en
Pages : 268
Book Description
Across a line drawn from New York to Los Angeles, the level of cconomi
An Economic Approach to the Psychology of Change
Author: David A. HirshleiferPublisher:
ISBN:
Category :
Languages : en
Pages : 46
Book Description
This paper models how imperfect memory affects the optimal continuity of policies. We examine the choices of a player (individual or firm) who observes previous actions but cannot remember the rationale for these actions. In a stable environment, the player optimally responds to memory loss with excess inertia, defined as a higher probability of following old policies than would occur under full recall. In a volatile environment, the player can exhibit excess impulsiveness (i.e., be more prone to follow new information signals). The model provides a memory-loss explanation for some documented psychological biases, implies that inertia and organizational routines should be more important instable environments than in volatile ones, and provides other empirical implications relating memory and environmental variables to the continuity of decisions.
informational cascades and social conventions
Author: david hirshleiferThe Blind Leading the Blind
Author: David HirshleiferPublisher:
ISBN:
Category : Conformity
Languages : en
Pages : 44
Book Description
The Historical Development of Mission in Two Urban Colleges
Author: S. M. IvancicA Rational Economic Approack to the Psychology of Change
Author: David HirshleiferRationality Gone Awry?
Author: Hugh H. SchwartzPublisher: Praeger
ISBN:
Category : Business & Economics
Languages : en
Pages : 248
Book Description
This text offers a perspective on increasing evidence of financial and economic anomalies and argues for a comprehensive behavioural framework for economies and finance that shows how factors allied to psychological and sociological issues are relevant.