Cognitive Limitations and Decision Making

Chariri, Anis (1999) Cognitive Limitations and Decision Making. Jurnal Bisnis Strategi, 3 .

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It is widely known that Judgment is an inevitable aspect of living for both individuals and organizations. Judgments involve information acquisition and processing that are required in helping individuals make a decision. Individual's ability to search for and process information will eventually determine the accuracy of judgments and decisions made. Unfortunately individuals, as human beings, have cognitive limitations in searching for and processing information. As a result, they can make an inaccurate judgment. As Hogarth (1980) argues, although individuals are adaptive, they have limited information processing capacities. This paper discusses cognitive limitations of individuals in obtaining and processing information, the potential impact of the limitations on making decisions, and possibilities to over come the limitations.

Item Type:Article
Subjects:H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:Faculty of Economics and Business > Department of Accounting
ID Code:575
Deposited By:Mr. Sugeng Priyanto
Deposited On:15 Sep 2009 14:25
Last Modified:15 Sep 2009 14:25

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