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Biases in Investor Decision Making: The Case of John DeLorean
Why do people so often make bad investment decisions–when it should have been clear from the beginning the decisions would turn sour? Using the John DeLorean Case as an example, this article explores some of the natural human tendencies that adversely affect the quality of decision making. Investors, once they are aware of these biases, […]
The Analytical Hierarchy Process–An Aid to Decision Making
Multiple-alternative decisions are commonplace in the business environment. The Analytical Hierarchy Process (AHP) in a business institution is a decision aid which is extremely useful for multiple-alternatives by assigning percentage points to each alternative in a decision. An explanation of the AHP and its use are given in this article. AHP applications covering forecasting, […]
The Japanese Phenomenon Without Stereotypes, and What We Can Learn from It
Why has Japan’s economy soared past most other nations’? Many answers have been given, but most are too simplistic. Lee provides an in-depth study of the strengths and characteristics contributing to Japan’s superior post-war economic growth, and assess their meaning for the United States. download .pdf
Examining the Small Business Incubator Explosion
The growth of “incubators: as an economic development strategy for small businesses has exploded into a myriad of choices and options. This has confused community leaders and business people alike as to the appropriate approach for an incubator project. With such a diversity existing in the structure and purpose of incubators, a clear analysis […]
Group Effects on a Merit Pay System
A relationship between pay increases and performance ratings may reflect differences between individuals, between groups, or both. An empirical study of a firm’s compensation program, demonstrating what proportion of pay raise is attributable to individual performances and to group influences, is presented. The results show how concealed effects of groups pose difficult problems in examining […]
Rebates: An Ethical Issue?
Rebates are a form of sales promotions that have seen increased use over the past few years, with the difficulty in compliance increasing over time. To avoid fraudulent rebate claims, manufactures have established such stringent rebate requirements that many consumers are unable to satisfy them and realize the rebate. The issue has become one […]
The Impact of Tax Simplification on Mortgage Buyouts
Whenever current mortgage rates are substantially higher than previous levels, mortgage leaders may find it attractive to extend to the borrowers a special opportunity to prepay to identify the important issues in the buy-out decision, analyze how buy-back proposals might work using representative mortgages dating back to 1961, and to evaluate how current tax reform […]
Investment Decisions with Labor Bottlenecks
This paper analyzes the keep-versus-replace decision where labor shortages act as production bottlenecks, which can be lessened to some degree by employing new labor saving equipment. Additional realism is brought to the analysis by explicit consideration of production demand, learning, and multiple product situations. download .pdf
