Early stages of the acute physical stress response increase loss aversion and learning on decision making: a Bayesian approach

Business growth is considered as one of the main topics of entrepreneurship research. Due to the increased interest on entrepreneurship, new theoretical perspectives have emerged to explain entrepreneurial behavior. One of these emergent theories is effectuation. It is widely known that entrepreneurs and owner-managers count on different decision-making logics during the internationalization of their ventures, including causal and effectual reasoning. Despite that the use of effectual reasoning has been generally linked to the early stages of the creation of a venture; it has recently been introduced to on the internationalization of SMEs research. Introduced by Sarasvathy (2001), effectuation logic is stated to grow in an unstable operating context where it is complicated to predict and in contrast, it is likely to unexpectedly respond to changes in the environment. Furthermore, it represents a typical shift in approaching entrepreneurship. In this theoretical paper, we first aim to highlight the evolution of the concept and the development of the effectuation theory within the literature. Furthermore, we explain the similarities and differences existing between causation and effectuation reasoning. Finally, we use the lens of effectuation to come up with an understanding of the internationalization of SMEs.

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FACTORS IMPACTING THE COMMERCIAL POTENTIAL OF TECHNOLOGIES: EXPERT APPROACH

Technological and Economic Development of Economy ◽

10.3846/20294913.2016.1271061 ◽

2017 ◽

Vol 23 (2) ◽

pp. 410-427 ◽

Cited By ~ 9

Author(s):

Vaida ZEMLICKIENĖ ◽

Alminas MAČIULIS ◽

Manuela TVARONAVIČIENĖ

Keyword(s):

Decision Making ◽

Technology Development ◽

Mathematical Statistics ◽

Development Model ◽

Commercial Potential ◽

Early Stages ◽

Expert Opinions ◽

Decision Making Processes ◽

Recommended Guidelines ◽

Advanced Tool

In order to ensure the harmonious activity of the institutions engaged in R&D and to reduce the uncertainty of the commercialization of technologies, an advanced tool for verifying decisions on technology development at early stages of commercialization, i.e. an instrument for assessing the commercial potential of technology, is needed. The article is aimed at defining the importance of factors in the commercial potential of technologies with the help of expert research. To achieve the goal, the following tasks have been approached: (1) on the basis of the created system for factors in the commercial potential of technologies, to conduct expert research aimed at collecting information on the importance of factors in technologies; (2) to apply the methods of mathematical statistics in order to determine the compatibility level of expert opinions and the significance of factors. The system of factors in the commercial potential of technologies and the identified significance of factors can be used as recommended guidelines for technology developers, investors and potential owners in the decision-making processes of commercialization, investment or purchase of technology as well as at the next stage of research on the development model for assessing the commercial potential of technologies.

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Are the saving decision patterns of bank customers also clouded by psychological biases? Evidence from Ghana

Review of Behavioral Finance ◽

10.1108/rbf-05-2021-0094 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Joseph Emmanuel Tetteh ◽

Christopher Boachie

Keyword(s):

Decision Making ◽

Loss Aversion ◽

Design Methodology ◽

Weighted Least Squares ◽

Least Squares Regression ◽

Individual Decision ◽

Content Type ◽

Saving Decisions ◽

The Individual ◽

Practical Implications

PurposeThis paper attempts to investigate the influence of psychological biases on saving decision-making of bank customers in Ghana.Design/methodology/approachIt employs weighted least squares regression to test the effect of psychological biases on savings decisions of bank customers.FindingsThe findings show that all the nine psychological biases, namely mental accounting, availability, loss aversion, representativeness, anchoring, overconfidence, status quo, framing effect and disposition effect employed for the study have a significant influence on saving decision of bank customers. The results depict that psychological biases are entrenched in the saving pattern of bank customers in Ghana.Practical implicationsFor policy purposes, the study recommends that bank customers need to enhance their knowledge of psychological biases in order to improve their gains from savings, and not to fall prey to these prejudices. The satisfied customer is a dependable source of bank viability and survival.Originality/valueTo the best of the knowledge of the author, this study provides the first empirical evidence of the influence of psychological biases on saving decisions of bank customers in Ghana. The findings of this study will enhance knowledge on the influence of psychological biases on individual decision-making and will accentuate the fact that the individual is not an entirely rational being.

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Coordinating a Supply Chain with a Loss-Averse Retailer and Effort Dependent Demand

The Scientific World JOURNAL ◽

10.1155/2014/231041 ◽

2014 ◽

Vol 2014 ◽

pp. 1-12 ◽

Cited By ~ 2

Author(s):

Liying Li ◽

Yong Wang

Keyword(s):

Decision Making ◽

Supply Chain ◽

Loss Aversion ◽

Special Class ◽

Numerical Study ◽

Supply Chain Performance ◽

Channel Coordination ◽

Gain Loss ◽

Decision Making Behavior ◽

Dependent Demand

This study investigates the channel coordination issue of a supply chain with a risk-neutral manufacturer and a loss-averse retailer facing stochastic demand that is sensitive to sales effort. Under the loss-averse newsvendor setting, a distribution-free gain/loss-sharing-and-buyback (GLB) contract has been shown to be able to coordinate the supply chain. However, we find that a GLB contract remains ineffective in managing the supply chain when retailer sales efforts influence the demand. To effectively coordinate the channel, we propose to combine a GLB contract with sales rebate and penalty (SRP) contract. In addition, we discover a special class of gain/loss contracts that can coordinate the supply chain and arbitrarily allocate the expected supply chain profit between the manufacturer and the retailer. We then analyze the effect of loss aversion on the retailer’s decision-making behavior and supply chain performance. Finally, we perform a numerical study to illustrate the findings and gain additional insights.

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Modelling of the Optimal Risks Combinatio for Non-Repeated Decision-Making in Enterpreneurship

Vestnik NSUEM ◽

10.34020/2073-6495-2020-2-271-281 ◽

2020 ◽

pp. 271-281

Author(s):

V. A. Kovalev ◽

A. I. Pestunov

Keyword(s):

Decision Making ◽

Negative Outcomes ◽

Optimal Variant ◽

Early Stages ◽

Proposed Model ◽

Alternative Choice

We analyze a problem of formalization a non-repeated decision-making in entrepreneurship when there are exist alternatives with negative outcomes, or losses, one among which does not have dangerous consequences. We consider a problem of modelling the subset of alternatives as variants of risks combinations, in particular, the choice of an optimal variant of the alternative. The proposed model may be exploited for formal justification of the alternative choice during the early stages of non-repeated.

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Factor Influencing Investor’s Decision Making in Indonesia: Moderating the Role of Locus of Control

International Journal of Business and Applied Social Science ◽

10.33642/ijbass.v6n4p6 ◽

2020 ◽

pp. 49-56

Author(s):

Febria Nalurita ◽

Farah Margaretha Leon ◽

Hamdy Hady

Keyword(s):

Decision Making ◽

Locus Of Control ◽

Loss Aversion ◽

Structural Equation ◽

Investment Decision ◽

Equation Modeling ◽

Investment Decision Making ◽

Market Factors ◽

Regret Aversion

This study aims to investigate the effect of loss aversion, regret aversion, and market factors, on investment decision making with the moderating role of locus of control. Data collection is done by distributing questionnaires. The survey was conducted on individual investors in the Indonesia Stock Exchange in Jakarta to obtain a sample of 281. This research uses the Structural Equation Modeling approach. The statistical tool used is LISREL 8.8. This study found that loss aversion, regret aversion, and market factors significantly influence investment decision making. Locus of control plays the role of moderation between loss aversion, regret aversion, market factors, and investment decision making. The novelty in this study reveals the research that needs to be done to encourage investors to make rational decisions and control the required rate of returns through their locus of control. This research helps investors to make decisions logically and rationally with an open mind, high-performance thoughts and positive actions for investment goals that produce positive returns.

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PENGAMBILAN KEPUTUSAN HUTANG PADA USAHA KECIL DAN MENENGAH (UKM) DI PULAU LOMBOK: SUATU PERSPEKTIF BEHAVIORAL FINANCE

JMM UNRAM - MASTER OF MANAGEMENT JOURNAL ◽

10.29303/jmm.v7i4.303 ◽

2018 ◽

Vol 7 (4) ◽

Author(s):

Siti Aisyah Hidayati ◽

Embun Suryani ◽

M Muhdin

Keyword(s):

Decision Making ◽

Behavioral Finance ◽

Loss Aversion ◽

Sampling Method ◽

Confirmation Bias ◽

Sampling Technique ◽

Factor Group ◽

Dominant Factor ◽

The Third ◽

Lombok Island

The purpose of this study is to find out what factors determine decision making of debt and what are the most dominant factors in decision making of debt for SMEs on the island of Lombok. This research is an explanatory research with quantitative approach. The population is all SMEs located in Lombok island. The sample is selected by Non probability sampling technique with a judgment sampling method where the SMEs that selected as samples are SMEs in handicraft industry of pottery and already exporting the products. Of the existing population, there are 25 (twenty five) SMEs that can be sampled. Respondents in this study are managers who also the owner of the SMEs. Data was collected using questionnaire. To achieve the research objectives, the data obtained will be processed according to needs using Factor Analysis.The results of this study indicate there are three groups of factors that determine decision making of debt, namely the First Factor Group consists of: Variable Excessive Optimism, Variable Overconfidence, Variable Confirmation Bias and Variable Aversion to sure loss. This factor is named Factor Overconfidence. The Second Factor Group consisted of Representativeness Variables, Avaibility Variables and Anchoring and Adjustment Variables. This factor is named the Avaibility Factor. The third factor group consists of Affect Variables and Aversion Loss Variables. This factor is named the Factor of Loss Aversion. The most dominant factor in determining debt decision making for SMEs in Lombok Island is the Overconfidence factor group consisting of Variable Excessive Optimism, Variable Overconfidence, Variable Confirmation Bias and Variable Aversion to sure loss .

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