Related papers: Managers' Choice of Disclosure Complexity
This paper examines competitive information disclosure in search markets with a mix of savvy consumers, who search costlessly, and inexperienced consumers, who face positive search costs. Savvy consumers incentivize truthful disclosure;…
The human mind is known to be sensitive to complexity. For instance, the visual system reconstructs hidden parts of objects following a principle of maximum simplicity. We suggest here that higher cognitive processes, such as the selection…
This chapter does not deal with specific tools and techniques for managing complex systems, but proposes some basic concepts that help us to think and speak about complexity. We review classical thinking and its intrinsic drawbacks when…
Uncertainty is a pervasive challenge in decision and risk management and it is usually studied by quantification and modeling. Interestingly, engineers and other decision makers usually manage uncertainty with strategies such as…
The concept of complexity appears in virtually all areas of knowledge. Its intuitive meaning shares similarities across fields, but disagreements between its details hinders a general definition, leading to a plethora of proposed…
This paper studies the value of a firm's internal information when the firm faces an adverse selection problem arising from unobservable managerial abilities. While more precise information allows the firm to make ex post more efficient…
One 'problem' with the 21st century world, particularly the economic and business worlds, is the phenomenal and increasing number of interconnections between economic agents (consumers, firms, banks, markets, national economies). This…
Tourism destinations behave as dynamic evolving complex systems, encompassing numerous factors and activities which are interdependent and whose relationships might be highly nonlinear. Traditional research in this field has looked after a…
Economic choices are often stochastic: the same person may make a different choice when facing the same alternatives repeatedly. Standard models assume that the degree of randomness reflects the size of utility differences, but choice…
As we increasingly delegate important decisions to intelligent systems, it is essential that users understand how algorithmic decisions are made. Prior work has often taken a technocentric approach to transparency. In contrast, we explore…
I introduce novel preference formulations which capture aversion to ambiguity about unknown and potentially time-varying volatility. I compare these preferences with Gilboa and Schmeidler's maxmin expected utility as well as variational…
We analyze how the sparsity of a typical aggregate social relation impacts the network overhead of online communication systems designed to provide k-anonymity. Once users are grouped in anonymity sets there will likely be few related pairs…
Economic complexity reflects the amount of knowledge that is embedded in the productive structure of an economy. It resides on the premise of hidden capabilities - fundamental endowments underlying the productive structure. In general,…
Complexity is a multi-faceted phenomenon, involving a variety of features including disorder, nonlinearity, and self-organisation. We use a recently developed rigorous framework for complexity to understand measures of complexity. We…
Economic transformation -- change in what an economy produces -- is foundational to development and rising standards of living. Our understanding of this process has been propelled recently by two branches of work in the field of economic…
Complexity remains one of the central challenges in science and technology. Although several approaches at defining and/or quantifying complexity have been proposed, at some point each of them seems to run into intrinsic limitations or…
We review possible measures of complexity which might in particular be applicable to situations where the complexity seems to arise spontaneously. We point out that not all of them correspond to the intuitive (or "naive") notion, and that…
Simple process models are key for effectively communicating the outcomes of process mining. An important question in this context is whether the complexity of event logs used as inputs to process discovery algorithms can serve as a reliable…
In the presence of ambiguity on the driving force of market randomness, we consider the dynamic portfolio choice without any predetermined investment horizon. The investment criteria is formulated as a robust forward performance process,…
There are many misconceptions around stock prices, stock splits, shareholders, investors, and managers behaviour about such informations due to a number of confounding factors. This paper tests hypotheses with a selected database, about the…