Abstract
| Language | English |
|---|---|
| Title of host publication | Portfolio Decision Analysis |
| Subtitle of host publication | Improved Methods for Resource Allocation |
| Editors | Ahti Salo, Jeffrey Keisler, Alec Morton |
| Place of Publication | 9781441999436 |
| Publisher | Springer-Verlag |
| Pages | 149-165 |
| Number of pages | 17 |
| DOIs | |
| Publication status | Published - 2011 |
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Keywords
- operations research
- financial economics
- management science
- behavioural issues
- portfolio decision analysis
Cite this
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Behavioural issues in portfolio decision analysis. / Fasolo, Barbara; Morton, Alec; Winterfeldt, Detlof.
Portfolio Decision Analysis: Improved Methods for Resource Allocation. ed. / Ahti Salo; Jeffrey Keisler; Alec Morton . 9781441999436 : Springer-Verlag, 2011. p. 149-165.Research output: Chapter in Book/Report/Conference proceeding › Chapter
TY - CHAP
T1 - Behavioural issues in portfolio decision analysis
AU - Fasolo, Barbara
AU - Morton, Alec
AU - Winterfeldt, Detlof
PY - 2011
Y1 - 2011
N2 - The aim of this chapter is to review some behavioural issues in portfolio choice and resource allocation decisions, with a focus on their relevance to Portfolio Decision Analysis. We survey some of behavioural literature on the most common heuristics and biases that arise in and can interfere with resource allocation processes. The common idea behind this behavioural literature is that of cognitive or motivational failure as an explanation for the violation of normative models. Then, we reflect on the relevance of this literature by drawing from the authors’ personal experiences as decision maker or decision analyst in real world resource allocation settings. We argue that justifiability can also be a reason for the normative violations. We conclude by discussing ways in which an analyst might approach debiasing.
AB - The aim of this chapter is to review some behavioural issues in portfolio choice and resource allocation decisions, with a focus on their relevance to Portfolio Decision Analysis. We survey some of behavioural literature on the most common heuristics and biases that arise in and can interfere with resource allocation processes. The common idea behind this behavioural literature is that of cognitive or motivational failure as an explanation for the violation of normative models. Then, we reflect on the relevance of this literature by drawing from the authors’ personal experiences as decision maker or decision analyst in real world resource allocation settings. We argue that justifiability can also be a reason for the normative violations. We conclude by discussing ways in which an analyst might approach debiasing.
KW - operations research
KW - financial economics
KW - management science
KW - behavioural issues
KW - portfolio decision analysis
U2 - 10.1007/978-1-4419-9943-6_7
DO - 10.1007/978-1-4419-9943-6_7
M3 - Chapter
SP - 149
EP - 165
BT - Portfolio Decision Analysis
A2 - Salo, Ahti
A2 - Keisler, Jeffrey
A2 - Morton , Alec
PB - Springer-Verlag
CY - 9781441999436
ER -