The value of information in an agency model with moral hazard

I show that the principal and the agent may each prefer that the principal or the agent has imperfect information about the principal's technology in a principal-agent environment with moral hazard. Principals expend considerable resources on data cumulation and analysis. However, such investments in information acquisition are benecial only if the agent will know that the principal is not ignorant or it allows the principal to implement a dierent action. When the principal is perfectly informed about her technology, the agent prefers to be ignorant. In addition, the value of perfect information for the agency is negative if the principal would implement the same action with either possible technology. I also investigate the dierences between ex ante and ex post contracting, and the ramications of the principal being ignorant or potentially ignorant about the technology. Finally, I determine if the principal's utility varies continuously with the degree of informativeness of the agent about the principal's technology. In this vein, I determine whether the agent's uncertainty may make the principal better o if she has the less informative technology.

A note on the property rights theory and the ex ante value of information

This paper examines the ex ante value of information in the property rights model where the possibility exists that an investing agent can be provided with relevant information before investments are undertaken. When contracts are incomplete, from an ex ante perspective, informing the investing agent does not necessarily increase the expected surplus resulting from a relationship between two economic agents. The paper highlights the fact that the second-best nature of the problem that arises from contractual incompleteness can ensure this.

The role of information and communication technology in the urgent decision making process : a work in progress report

This paper reports part of a study that examines how members of a senior management team in a public sector organisation make decisions under urgency. Four regional managers, who are geographically dispersed around New Zealand were interviewed, either face-to-face or via telephone, regarding their experiences of decision making under urgency.

Preliminary results indicate that only three out of a possible seven steps of a conventional decision making process are used during the urgent decision making process. The study also shows that participants do not fully utilise the information and communication technology available during the decision making process. The implications the findings have for practice and research are discussed.

Young adult voting decision-making: Studying the effect of usage from a consumer behaviour perspective

This study investigates the application of consumer behaviour theory to young Australian adults’ voting decision-making. Previous decision-making studies identified constructs of subjective knowledge, involvement, information seeking, satisfaction, confidence, and stability as key factors in voting decision-making. This research tests the relationship that these factors have with the consumer behaviour concept of usage. A new concept, commitment to vote, is also considered for Australia’s compulsory voting context. Data were gathered from a sample of 257 Australian citizens between the ages of 18 and 25. Exploratory factor analysis produced nine factors, and MANOVA and ANOVA were used to test the differences between three usage groups: voluntary users, involuntary users, and never trieds. The results illustrate that usage has a significant influence on information seeking, commitment to voting, satisfaction with voting choice, and stability in voting decision-making. Therefore, usage is a key element in voter decision-making and needs to be included in future studies.

A two-stage dynamic group decision making method for processing ordinal information

In group decision making (GDM) problems, ordinal data provide a convenient way of articulating preferences from decision makers (DMs). A number of GDM models have been proposed to aggregate such kind of preferences in the literature. However, most of the GDM models that handle ordinal preferences suffer from two drawbacks: (1) it is difficult for the GDM models to manage conflicting opinions, especially with a large number of DMs; and (2) the relationships between the preferences provided by the DMs are neglected, and all DMs are assumed to be of equal importance, therefore causing the aggregated collective preference not an ideal representative of the group's decision. In order to overcome these problems, a two-stage dynamic group decision making method for aggregating ordinal preferences is proposed in this paper. The method consists of two main processes: (i) a data cleansing process, which aims to reduce the influence of conflicting opinions pertaining to the collective decision prior to the aggregation process; as such an effective solution for undertaking large-scale GDM problems is formulated; and (ii) a support degree oriented consensus-reaching process, where the collective preference is aggregated by using the Power Average (PA) operator; as such, the relationships of the arguments being aggregated are taken into consideration (i.e., allowing the values being aggregated to support each other). A new support function for the PA operator to deal with ordinal information is defined based on the dominance-based rough set approach. The proposed GDM model is compared with the models presented by Herrera-Viedma et al. An application related to controlling the degradation of the hydrographic basin of a river in Brazil is evaluated. The results demonstrate the usefulness of the proposed method in handling GDM problems with ordinal information.

Triage nurses' clinical decision making : an observational study of urgency assessment

Background. Researchers have described both the various decision tasks performed by triage nurses using self-report methods and identified time as a factor influencing the quality of triage decisions. However, little is known about the decision tasks performed by triage nurses when making acuity assessments, or the factors influencing triage duration in the real world.

Aims. The aims of this study were to: describe the data triage nurses collect from patients in order to allocate a triage priority using the Australasian Triage Scale (ATS); describe the duration of nurses' decision making for ATS categories 2–5; and to explore the impact of patient and nurse variables on the duration of the triage nurses' decision making in the clinical setting.

Design. A structured observational study was employed to address the research aims. Observational data was collected in one adult emergency department located in metropolitan Melbourne, Australia. A total of 26 triage nurses consented and were observed performing 404 occasions of triage. Data was collected by a single observer using a 20-item instrument that recorded the performance frequencies of a range of decision tasks and a number of observable patient, nurse and environmental variables. Additionally, the nurse–patient interaction was recorded as time in minutes.

Results. It was found that there was limited use of objective physiological data collected by the nurses' in order to decide patient acuity, and large variability in the duration of triage decisions observed. In addition, analysis of variance indicated strong evidence of a true difference between triage duration and a range of nurse, patient and environmental variables.

Conclusion. These findings have implications for the development of practice standards and triage education. In particular, it is argued that practice standards should include routine measurement of physiological parameters in all but the collapsed or obviously unwell patient, where further delay may impede the delivery oftime-critical intervention. Furthermore, the inclusion of arbitrary time frames for triage assessment in practice standards are not an appropriate method of evaluating triage decision making in the real world.

Style of information usage and use of accounting information : a Malaysian study

Purpose – Since the 1990s, there has been a growing interest in style of information usage. However, most studies on style of information usage are conducted in developed countries. There is limited research on style of information usage in developing countries. The purpose of this paper is to fill the gap in the existing literature by examining relationships between style of information usage and use of financial and non-financial information in Malaysia.

Design/methodology/approach – The authors adopted a survey method, for which a written questionnaire was prepared and mailed out to companies in Kuala Lumpur, Selangor, Terengganu and Pulau Pinang.

Findings – Findings of the study show that diagnostic style of information usage is positively associated with use of financial information, while interactive style of information usage is positively associated with use of non-financial information. Further analysis on types of non-financial information used by managers who adopt interactive style of information usage reveals that customer-related non-financial information such as quality, customer satisfaction and flexibility play a more important role in their decision-making processes.

Originality/value – The paper provides insights into relationships between style of information usage on and use of accounting information in developing countries. Findings of the study can be applied to assist management accountants in meeting managers’ information requirements.

Decision making after 50 days of simulated weightlessness

By restricting physical activity levels, the bed rest simulation of weightlessness could be associated with changes in prefrontal cortex functioning that manifest as cognitive decrements, particularly for executive cognitive functions. We aimed to determine if performance on an executive function task was indeed affected by bed rest. The Iowa Gambling Task, a card game measuring real-life decision making processes, was administered to 25 healthy males (aged 21-45 years) selected to undergo 60 days of 6 degrees head-down tilt bed rest for the 2nd Berlin BedRest Study (BBR2-2). Testing was conducted either 6 days before beginning bed rest (n=13) or on the 51st day of bed rest (n=12). The task performance scores of subjects tested before bed rest were not significantly different from those tested during bed rest. However, subjects tested during bed rest failed to adapt their card selection strategy as the Iowa Gambling Task progressed. This was unlike the subjects tested before bed rest, who switched between decks on consecutive card selections less frequently in latter stages of the task. An influence of prolonged bed rest on decision making could have implications for the planning of human spaceflights to Mars, or for any circumstance in which adequate physical activity levels are not achieved.

Assessing the case for mandatory folate fortification : policy-making in the face of scientific uncertainties

This paper presents the view that policymakers face scientific uncertainties in assessing the case for mandatory folate fortification as a policy response to epidemiological evidence of the relationship between folate and neural tube defects. Moreover, the resolution of these uncertainties is confounded by the under-resourced state of nutrition information systems in Australia and New Zealand. The uncertainties relate to potential risks and benefits associated with the intervention for the target group and the population in general. These risks and benefits reflect the mismatch between evidence and policy that arises when addressing a presumed genetic abnormality in at-risk individuals with an intervention that is population-wide in its scope. There is an urgent need to conduct ongoing national nutrition surveys and monitor and evaluate policy interventions to strengthen the capacity of nutrition information systems to inform decision-making for this current, and future, public health nutrition policy.

International outsourcing of information technology services : review and future directions

Purpose – The purpose of this paper is to review the development of the empirical literature on international outsourcing of information technology services (ITS) over the 1992-2007 period and to identify future research areas.

Design/methodology/approach – A sample of 78 empirical academic publications on international outsourcing of ITS conducted between 1992 and 2007 across 46 scholarly journals constitutes the main data for analytical purposes. The sample is compiled following extensive electronic searches of the main academic databases. After clustering the studies in the sample according to their main research areas, a narrative approach is used to review developments in each cluster and to identify emerging research areas.

Findings – Four main areas of research are identified, namely outsourcing decision, outsourcing management (OSM), outsourcing outcome and the role of offshore service providers (OSPs). The review suggests that research efforts to date have been predominantly on outsourcing decision and OSM, mostly from the perspective of clients. Future research opportunities exist in the areas of outsourcing strategy and performance, the behaviour and performance of OSPs particularly within the context of firms from less-developed countries competing globally, and the nature of competition among OSPs both within and among countries.

Originality/value – This is the first review which focuses on empirical studies of outsourcing for ITS. This paper identifies several gaps in the literature and points to the need for more research on outsourcing from the perspective of OSPs.

The role of external influences in high involvement purchase behaviour

Purpose
The purpose of this paper is to discover the consumer decision-making style clusters within the context of automobile purchases in Australia. It also examines the differences between consumer decision-making styles in terms of the importance given to external influences, such as importance of dealers, importance of friends/family members, number of cars test driven, time spent researching final decision and importance of information sources (e.g. internet, magazines, TV ads, word of mouth, etc.), prior to making their final purchase decision.

Design/methodology/approach
Data were collected from 209 respondents using self-administered questionnaires. Cluster analysis and ANOVA were employed to identify and analyse the differences between consumer decision-making style clusters. Consumer Styles Inventory (CSI; Sproles and Kendall, 1986) was used to measure respondents’ consumer decision-making styles in relation to automobile purchases.

Findings
Three clusters were identified from the analysis, namely “innovative informed”, “rational confused”, and “traditional habitual”. Significant differences were found between the clusters in terms of the average time they spent with each car dealer, the time they spent on researching final decision and the importance of consulting with family members prior to making their final purchase decision.

Practical implications
The paper found that some consumers rely heavily on friends/families and dealers as the most important sources of information. Other sources of information consumers use include television advertisements, newspapers, billboards and magazines. Based on the findings, marketers should focus on providing similar types of information/messages by using these above-mentioned sources when communicating with this type of consumers. Dealers could be trained to spend time explaining product features and benefits in full with these consumers and their friends and family members whom they are likely to bring along before making the final purchase decision.

Originality/value
The findings of this study have extended the knowledge by determining the impact of external influences on consumer decision-making styles using the CSI in context of specific product which is yet to be known in relation to Australian automobile consumers.

Evaluating Australian social media policies in relation to the issue of information disclosure

Information disclosure is a key concern for many organisations especially in the era of social media. Social media allows for information disclosure to occur easily due to the ubiquitous usage of technology such as mobile devices. Acceptable social media policies can be used by organisations and their employees to improve their decision making behaviours as well as being used as a controlling mechanism to mitigate the issue of information disclosure. Through a review of related research literature along with a content analysis of publicly available Australian social media policies, this paper identifies a perceived gap pertaining to the issue of information disclosure in current Australian social media use policies. To fill this gap, we have highlighted the key components when developing an organisational social media policy. An evaluation criteria is also proposed by the paper that organisations can use to assist in mitigating the information disclosure.