Two‐stage decision‐making within the firm : analysis and case studies

Hsu, Yu-Lin and Reid, Gavin C. (2021) Two‐stage decision‐making within the firm : analysis and case studies. Managerial and Decision Economics, 42 (6). pp. 1355-1373. ISSN 1099-1468

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    Abstract

    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.