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Two‐stage decision‐making within the firm: Analysis and case studies
Author(s) -
Hsu YuLin,
Reid Gavin C.
Publication year - 2021
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.3317
Subject(s) - decision tree , simple (philosophy) , influence diagram , computer science , stage (stratigraphy) , operations research , management science , decision analysis , tree (set theory) , microeconomics , economics , mathematical economics , artificial intelligence , mathematics , paleontology , philosophy , epistemology , biology , mathematical analysis
This article analyses, with case study illustrations, a two‐stage decision support technique for making informed choices within firms. The technique can assist managers by the use of simple decision‐tree diagrams, assigning values to its branches. The technique is based on the microeconomics of choice orderings, and we demonstrate how appropriate decision trees can be constructed and applied. This technique is illustrated by three case study vignettes based on real actions of UK firms. These show how such decision trees can both aid our understanding of choices made and assist in the practice of choosing financial reporting regimes and techniques.