The stock management (SM) problem is of high relevance for a broad range of decision makers in society, business, and personal affairs. Although in some areas highly sophisticated models and control concepts have been developed, human stock management performance is lamentable. One recent explanation for this failure is offered by a stream of research, which finds evidence for widespread and persistent deficits in understanding how flows accumulate in stocks. This misunderstanding of accumulation (MoA) is proven even among well-educated adults. This research uses laboratory experiments to test the hypothesis that the better people understand accumulation, the higher is their performance in SM tasks. Correlation and univariate regression analysis show that MoA indeed contributes to explaining performance differences in stock management. However, the effect is moderate and vanishes almost completely when intelligence and economic knowledge are included as control variables in a multiple regression model. The value of this paper lies in explicitly testing the relation of MoA and SM, whose existence is widely taken for granted. Future research could explore a broader set of control variables and should increase the number of cases to allow for advanced theory testing using, for example, structural equation modelling.

This is the whole item.

Date created

• 2011 July 24-2011 July 28

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
  Contact Us for questions or additional rights.

ITEM CONTEXT

Part of

28441c340962a2b363963713d1bba533

Scope and Contents

Part of

e35e9d46c0556df862a8fbb9e32d2143

Scope and Contents

Part of

23d738ba88f8333bc39725f9cb5bd0b8

Scope and Contents

Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives