Shared investment projects and forecasting errors: setting framework conditions for coordination and sequencing data quality activities.

ABSTRACT: In this paper, we investigate the impact of inaccurate forecasting on the coordination of distributed investment decisions. In particular, by setting up a computational multi-agent model of a stylized firm, we investigate the case of investment opportunities that are mutually carried out by organizational departments. The forecasts of concern pertain to the initial amount of money necessary to launch and operate an investment opportunity, to the expected intertemporal distribution of cash flows, and the departments' efficiency in operating the investment opportunity at hand. We propose a budget allocation mechanism for coordinating such distributed decisions The paper provides guidance on how to set framework conditions, in terms of the number of investment opportunities considered in one

SUBMITTER: Leitner S 

PROVIDER: S-EPMC4372378 | biostudies-literature | 2015

REPOSITORIES: biostudies-literature