Multiple aspiration levels in decision under risk

2009 ◽  
Author(s):  
Enrico Diecidue
Keyword(s):  
Decision Under Risk ◽  
Aspiration Levels

RESPONSIBILITY, GUILT, AND DECISION UNDER RISK

2003 ◽  
Vol 93 (7) ◽  
pp. 1077
Author(s):  
FRANCESCO MANCINI
Keyword(s):  
Decision Under Risk

Modelling resilient fashion retail supply chain strategies to mitigate the COVID-19 impact

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
P.R.S. Sarma ◽  
Aalok Kumar ◽  
Nishat Alam Choudhary ◽  
Sachin Kumar Mangla
Keyword(s):  
Supply Chain ◽  
Capacity Constraints ◽  
Content Type ◽  
Online Platforms ◽  
Aspiration Levels ◽  
The Future ◽  
Optimisation Model ◽  
Fashion Retail ◽  
Online Stores ◽  
The Impact

PurposeThis paper aims to develop supply chain strategies for the fashion retail supply chain (FRSC), likely to be disrupted by the current pandemic (COVID-19) under physical and online retail stores. The resilient retail supply chain design is proposed under budget allocation and merchandise capacity constraints.Design/methodology/approachThis paper utilises the theory of constraint (ToC) and goal programming (GP) to address the COVID-19 impact on FRSC. The budgetary and capacity constraints are formulated with a constraint optimisation model and tested with six different priorities to deal with the physical and online stores. Next, all priorities are developed under different FRSC business scenarios. The ToC-GP-based optimisation model is validated with one of the Indian fashion retail supply chains.FindingsThe proposed optimisation model presents the optimal retailing strategies for selling fashion goods over physical and online platforms. The multiple scenarios are presented for developing trade-offs among different strategies to maximise the retailer's merchandise performance. This paper also highlighted the strategic movement from high merchandise density stores to low merchandise density stores. This implies a reduction of sales targets and aspiration levels of both online and physical fashion stores.Research limitations/implicationsThe proposed model is validated with one of the fashion retailers in India. Other nations or multiple fashion retailers might be considered for more generalisation of findings in the future.Practical implicationsThis research helps fashion retail supply chain managers deal with consumer demand uncertainty over physical and online stores in pandemic times. Limitation: Other nations or multiple fashion retailers might be considered for more generalisation of findings in the future.Originality/valueThis is the first study that considered the impact of COVID-19 on the retail fashion supply chain. The effect of physical and online platforms is mainly discussed from consumer marketing perspectives, but an inventory and resilience perspective is missing in earlier studies. The role of merchandise planning is highlighted in this study.

scholarly journals Effects of aspiration-induced adaptation and migration on the evolution of cooperation

2014 ◽  
Vol 25 (07) ◽  
pp. 1450025 ◽  
Author(s):  
Yu Peng ◽  
Xu-Wen Wang ◽  
Qian Lu ◽  
Qing-Ke Zeng ◽  
Bing-Hong Wang
Keyword(s):  
Data Envelopment Analysis ◽  
Prospect Theory ◽  
Evolution Of Cooperation ◽  
Square Lattice ◽  
Data Envelopment ◽  
Aspiration Level ◽  
Aspiration Levels ◽  
Emergence Of Cooperation ◽  
And Migration ◽  
The Individual

In the light of the prospect theory (PT), we study the prisoner's dilemma game (PDG) on square lattice by integrating the deterministic and Data envelopment analysis (DEA) efficient rule into adaptive rules: the individual will change evolutionary rule and migrate if its payoff is lower than their aspiration levels. Whether the individual choose to change the evolutionary rule and migrate is determined by the relation between its payoff and aspiration level. The results show that the cooperation frequency can hold unchange with the increasing of temptation to defect. The individual chooses to adopt DEA efficient rule and to migrate that can induce the emergence of cooperation as the payoff is lower than its aspiration.

Invest in Innovation or Not? How Managerial Cognition and Attention Allocation Shape Corporate Responses to Performance Shortfalls

2021 ◽  
pp. 1-36
Author(s):  
Lerong He ◽  
Liying Huang ◽  
Guangqing Yang
Keyword(s):  
Performance Feedback ◽  
Attention Allocation ◽  
High Tech ◽  
Moderating Effects ◽  
Managerial Cognition ◽  
Industry Competition ◽  
Aspiration Levels ◽  
The Relationship ◽  
Underperforming Firms ◽  
D Investment

ABSTRACT This study investigates the influence of managerial cognition and attention allocation on firms’ responses to negative performance feedback. We explore how managerial cognition, as shaped by managers’ experiences, connections, positions, and industry environments, affects underperforming firms’ attention allocation and, consequently, their decisions to invest in innovation. Utilizing a longitudinal sample of Chinese high-tech firms from 2009 to 2017, we find that firms increase investment in research and development (R&D) when performance falls below aspiration levels. We also document that underperforming firms are associated with an even larger R&D investment increase when their CEOs have an R&D or engineering background, serve simultaneously as the board chair, or are not politically connected. In addition, we highlight the moderating effects of industry competition and industry norms on the relationship between firm underperformance and R&D intensity. We conclude that managerial cognition affects firms’ allocation of attention to innovation as a solution for closing performance gaps and shapes corporate responses to negative performance feedback.

Sign in / Sign up

Export Citation Format

Share Document