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The study aims to optimize truck routes by minimizing social and economic costs. It introduces a strategy involving diverse drones and their potential for reusing at DNs based on flight range. In HTDRP-DC, trucks can select and transport various drones to LDs to reduce deprivation time. This study estimates the nonlinear deprivation cost function using a linear two-piece-wise function, leading to MILP formulations. A heuristic-based Benders Decomposition approach is implemented to address medium and large instances. Valid inequalities and a heuristic method enhance convergence boundaries, ensuring an efficient solution methodology.

Research has yet to address critical factors in disaster logistics: minimizing the social and economic costs simultaneously and using drones in relief distribution; deprivation as a social cost measures the human suffering from a shortage of relief supplies. The proposed hybrid truck-drone routing problem minimizing deprivation cost (HTDRP-DC) involves distributing relief supplies to dispersed demand nodes with undamaged (LDs) or damaged (DNs) access roads, utilizing multiple trucks and diverse drones. A Benders Decomposition approach is enhanced by accelerating techniques.

Incorporating deprivation and economic costs results in selecting optimal routes, effectively reducing the time required to assist affected areas. Additionally, employing various drone types and their reuse in damaged nodes reduces deprivation time and associated deprivation costs. The study employs valid inequalities and the heuristic method to solve the master problem, substantially reducing computational time and iterations compared to GAMS and classical Benders Decomposition Algorithm. The proposed heuristic-based Benders Decomposition approach is applied to a disaster in Tehran, demonstrating efficient solutions for the HTDRP-DC regarding computational time and convergence rate.

Current research introduces an HTDRP-DC problem that addresses minimizing deprivation costs considering the vehicle’s arrival time as the deprivation time, offering a unique solution to optimize route selection in relief distribution. Furthermore, integrating heuristic methods and valid inequalities into the Benders Decomposition approach enhances its effectiveness in solving complex routing challenges in disaster scenarios.

This study aims to use a qualitative approach to explore and clarify the mechanism by which heuristic-driven biases influence the decisions and performance of individual investors actively trading on the Pakistan Stock Exchange (PSX). It also aims to identify how to overcome the negative effect of heuristic-driven biases, so that finance practitioners can avoid the expensive errors which they cause.

This study adopts an interpretative approach. Qualitative data was collected in semistructured interviews, in which the target population was asked open-ended questions. The sample consists of five brokers and/or investment strategists/advisors who maintain investors’ accounts or provide investment advice to investors on the PSX, who were selected on a convenient basis. The researchers analyzed the interview data thematically.

The results confirm that investors often use heuristics, causing several heuristic-driven biases when trading on the stock market, specifically, reliance on recognition-based heuristics, namely, alphabetical ordering of firm names, name memorability and name fluency, as well as cognitive heuristics, such as herding behavior, disposition effect, anchoring and adjustment, repetitiveness, overconfidence and availability biases. These lead investors to make suboptimal decisions relating to their investment management activities. Due to these heuristic-driven biases, investors trade excessively in the stock market, and their investment performance is adversely affected.

This study provides a practical framework to explore and clarify the mechanism by which heuristic-driven biases influence investment management activities. To the best of authors’ knowledge, the current study is the first to focus on links between heuristic-driven biases, investment decisions and performance using a qualitative approach. Furthermore, with the help of a qualitative approach, the investigators also highlight some factors causing an increased use of heuristic variables by investors and discuss practical approaches to overcoming the negative effects of heuristics factors, so that finance practitioners can avoid repeating the expensive errors which they cause, which also differentiates this study from others.

This article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.

For doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.

This review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.

The skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.

Currently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.

The aim of this paper is to systematically review the literature published in recognized journals focused on recognition-based heuristics and their effect on investment management activities and to ascertain some substantial gaps related to them.

For doing research synthesis, systematic literature review approach was applied considering research studies published within the time period, i.e. 1980–2020. This study attempted to accomplish a critical review of 59 studies out of 118 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioural finance domain-related explicitly to recognition-based heuristics and their effect on investment management activities.

The survey and analysis suggest investors consistently rely on the recognition-based heuristic-driven biases when trading stocks, resulting in irrational decisions, and an investment strategy constructed by implementing the recognition-based heuristics, would not result in better returns to investors on a consistent basis. Institutional investors are less likely to be affected by these name-based behavioural biases in comparison to individual investors. However, under the context of ecological rationality, recognition-based heuristics work better and sometimes dominate the classical methods. The research scholars from the behavioural finance community have highlighted that recognition-based heuristics and their impact on investment management activities are high profile areas, needed to be explored further in the field of behavioural finance. The study of recognition-based heuristic-driven biases has been found to be insufficient in the context of emerging economies like Pakistan.

The skilful understanding and knowledge of the recognition-based heuristic-driven biases will help the investors, financial institutions and policy-makers to overcome the adverse effect of these behavioural biases in the stock market. This article provides a detailed explanation of recognition-based heuristic-driven biases and their influence on investment management activities which could be very useful for finance practitioners’ such as investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/ broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making its financial management strategies.

Currently, no recent study exists, which reviews and evaluates the empirical research on recognition-based heuristic-driven biases displayed by investors. The current study is original in discussing the role of recognition-based heuristic-driven biases in investment management activities by means of research synthesis. This paper is useful to researchers, academicians, and those working in the area of behavioural finance in understanding the role that recognition-based heuristics plays in investment management activities.

We argue that a fundamental issue regarding how to search and how to switch between different cognitive modes lies in the decision rules that influence the dynamics of learning and exploration. We examine the search logics underlying these decision rules and propose conceptual prompts that can be applied mentally or computationally to aid managers’ decision-making.

By applying Multi-Armed Bandit (MAB) modeling to simulate agents’ interaction with dynamic environments, we compared the patterns and performance of selected MAB algorithms under different configurations of environmental conditions.

We develop three conceptual prompts. First, the simple heuristic-based exploration strategy works well in conditions of low environmental variability and few alternatives. Second, an exploration strategy that combines simple and de-biasing heuristics is suitable for most dynamic and complex decision environments. Third, the uncertainty-based exploration strategy is more applicable in the condition of high environmental unpredictability as it can more effectively recognize deviated patterns.

This study contributes to emerging research on using algorithms to develop novel concepts and combining heuristics and algorithmic intelligence in strategic decision-making.

This study offers insights that there are different possibilities for exploration strategies for managers to apply conceptually and that the adaptability of cognitive-distant search may be underestimated in turbulent environments.

Drawing on insights from machine learning and cognitive psychology research, we demonstrate the fitness of different exploration strategies in different dynamic environmental configurations by comparing the different search logics that underlie the three MAB algorithms.

Assembly lines are widely employed in manufacturing processes to produce final products in a flow efficiently. The simple assembly line balancing problem is a basic version of the general problem and has still attracted the attention of researchers. The type-I simple assembly line balancing problems (SALBP-I) aim to minimise the number of workstations on an assembly line by keeping the cycle time constant.

This paper focuses on solving multi-objective SALBP-I problems by utilising an artificial bee colony based-hyper heuristic (ABC-HH) algorithm. The algorithm optimises the efficiency and idleness percentage of the assembly line and concurrently minimises the number of workstations. The proposed ABC-HH algorithm is improved by adding new modifications to each phase of the artificial bee colony framework. Parameter control and calibration are also achieved using the irace method. The proposed model has undergone testing on benchmark problems, and the results obtained have been compared with state-of-the-art algorithms.

The experimental results of the computational study on the benchmark dataset unequivocally establish the superior performance of the ABC-HH algorithm across 61 problem instances, outperforming the state-of-the-art approach.

This research proposes the ABC-HH algorithm with local search to solve the SALBP-I problems more efficiently.

Allocation of the marketing budget has become increasingly challenging due to the diverse channel exposure to customers. This study aims to enhance global marketing knowledge by introducing an ensemble attribution model to optimize marketing budget allocation for online marketing channels. As empirical research, this study demonstrates the supremacy of the ensemble model over standalone models.

The transactional data set for car insurance from an Indian insurance aggregator is used in this empirical study. The data set contains information from more than three million platform visitors. A robust ensemble model is created by combining results from two probabilistic models, namely, the Markov chain model and the Shapley value. These results are compared and validated with heuristic models. Also, the performances of online marketing channels and attribution models are evaluated based on the devices used (i.e. desktop vs mobile).

Channel importance charts for desktop and mobile devices are analyzed to understand the top contributing online marketing channels. Customer relationship management-emailers and Google cost per click a paid advertising is identified as the top two marketing channels for desktop and mobile channels. The research reveals that ensemble model accuracy is better than the standalone model, that is, the Markov chain model and the Shapley value.

To the best of the authors’ knowledge, the current research is the first of its kind to introduce ensemble modeling for solving attribution problems in online marketing. A comparison with heuristic models using different devices (desktop and mobile) offers insights into the results with heuristic models.

We consider a joint optimization problem of product platform design and scheduling on unrelated additive/subtractive hybrid machines, and seek to find efficient solution approaches to solve such problem.

We propose a mathematical formulation for the problem of simultaneous product platform design and scheduling on unrelated additive/subtractive hybrid machines, and develop a simulated annealing-based hyper-heuristic algorithm with adjustable operator sequence length to solve the problem.

The simulated annealing-based hyper-heuristic algorithm with adjustable operator sequence length (SAHH-osla) that we proposed can be quite efficient in solving the problem of simultaneous product platform design and scheduling on unrelated additive/subtractive hybrid machines.

To the best of our knowledge, we are one of the first to consider both cost-related and time-related criteria for the problem of simultaneous product platform design and scheduling on unrelated additive/subtractive hybrid machines.

The purpose of this article is to develop a bi-directional relaxed flexible bay structure (BRFBS) in the layout for the unequal area facility layout problems (UA-FLPs) and test the suitability of the proposed approach using literature data.

This research adopts a two-stage solution approach for UA-FLPs to form BRFBS in the layout. The solution to UA-FLPs is carried out in discrete space. The proposed heuristic method optimises the layout plan for minimising the material handling cost (MHC), and also, it indirectly optimises the space utilisation by reducing the empty space in the layout. The first stage of layout design assumes that all facilities are equal in size and uses quadratic assignment problem (QAP) model. QAP is solved with a simulated annealing heuristic method. In the second stage, a heuristic method is proposed to find the optimum width for each bay and the dimension for facilities. The proposed heuristic method is tested with numerical data available in the literature. Results are compared with the results obtained by layout planning software, and with the simulated annealing algorithm for flexible bay structure (SA-FBS) heuristic procedure for continuous space UA-FLPs.

The proposed two-stage solution approach gives the BRFBS for the UA-FLPs. BRFBS helps to create proper aisle structure in the layout plan. The layout configuration and solution of the proposed method is better than the layout planning software solution and SA-FBS solution. The application of the proposed heuristic method to case data gave lesser MHC, better space utilisation and better aisle formation than the existing layout.

The proposed approach has the limitation that it can be applied only to UA-FLPs solved in discrete space. When the UA-FLPs are solved in continuous space, then it is not possible to make application of this approach to form bi-directional relaxed flexible bays in the layout plan.

Most of the modern industries are automated, and they use material handling equipment (MHE) like automated guided vehicles (AGVs). Design of layout plans that help to create proper aisle structure for AGV’s in the layout plan is a challenging to the researchers. The BRFBS configuration is more suitable in the flexible manufacturing system where AGVs are used for material transportation.

This paper proposes a novel two-stage heuristic method for solving the UA-FLPs in discrete space. The proposed approach generates a BRFBS in the layout plan. The BRFBS helps to create a proper aisle structure suitable for better material handling operations. Hence, this type of layout helps in easy interaction of the MHE (e.g. AGVs) with the boundaries of the facilities touching the aisle.

This study examined how people assess health information from AI and improve their diagnostic ability to identify health misinformation. The proposed model was designed to test a cognitive heuristic theory in misinformation discernment.

We proposed the heuristic-systematic model to assess health misinformation processing in the algorithmic context. Using the Analysis of Moment Structure (AMOS) 26 software, we tested fairness/transparency/accountability (FAccT) as constructs that influence the heuristic evaluation and systematic discernment of misinformation by users. To test moderating and mediating effects, PROCESS Macro Model 4 was used.

The effect of AI-generated misinformation on people’s perceptions of the veracity of health information may differ according to whether they process misinformation heuristically or systematically. Heuristic processing is significantly associated with the diagnosticity of misinformation. There is a greater chance that misinformation will be correctly diagnosed and checked, if misinformation aligns with users’ heuristics or is validated by the diagnosticity they perceive.

When exposed to misinformation through algorithmic recommendations, users’ perceived diagnosticity of misinformation can be predicted accurately from their understanding of normative values. This perceived diagnosticity would then positively influence the accuracy and credibility of the misinformation.

Perceived diagnosticity exerts a key role in fostering misinformation literacy, implying that improving people’s perceptions of misinformation and AI features is an efficient way to change their misinformation behavior.

Although there is broad agreement on the need to control and combat health misinformation, the magnitude of this problem remains unknown. It is essential to understand both users’ cognitive processes when it comes to identifying health misinformation and the diffusion mechanism from which such misinformation is framed and subsequently spread.

The mechanisms through which users process and spread misinformation have remained open-ended questions. This study provides theoretical insights and relevant recommendations that can make users and firms/institutions alike more resilient in protecting themselves from the detrimental impact of misinformation.

The peer review history for this article is available at: https://publons.com/publon/10.1108/OIR-04-2023-0167