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Article
Publication date: 27 May 2021

Ilaria Galavotti, Andrea Lippi and Daniele Cerrato

This paper aims to develop a conceptual framework on how the representativeness heuristic operates in the decision-making process. Specifically, the authors unbundle…

Abstract

Purpose

This paper aims to develop a conceptual framework on how the representativeness heuristic operates in the decision-making process. Specifically, the authors unbundle representativeness into its building blocks: search rule, stopping rule and decision rule. Furthermore, the focus is placed on how individual-level cognitive and behavioral factors, namely experience, intuition and overconfidence, affect the functioning of this heuristic.

Design/methodology/approach

From a theoretical standpoint, the authors build on dual-process theories and on the adaptive toolbox view from the “fast and frugal heuristics” perspective to develop an integrative conceptual framework that uncovers the mechanisms underlying the representativeness heuristic.

Findings

The authors’ conceptualization suggests that the search rule used in representativeness is based on analogical mapping from previous experience, the stopping rule is the representational stability of the analogs and the decision rule is the choice of the alternative upon which there is a convergence of representations and that exceeds the decision maker's aspiration level. In this framework, intuition may help the decision maker to cross-map potentially competing analogies, while overconfidence affects the search time and costs and alters both the stopping and the decision rule.

Originality/value

The authors develop a conceptual framework on representativeness, as one of the most common, though still poorly investigated, heuristics. The model offers a nuanced perspective that explores the cognitive and behavioral mechanisms that shape the use of representativeness in decision-making. The authors also discuss the theoretical implications of their model and outline future research avenues that may further contribute to enriching their understanding of decision-making processes.

Details

Management Decision, vol. 59 no. 7
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 21 November 2016

Maren B. Trochmann and Angela Gover

The purpose of this paper is to examine whether the representativeness of police departments, i.e. the extent to which the demographics of sworn police officers mirror…

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1117

Abstract

Purpose

The purpose of this paper is to examine whether the representativeness of police departments, i.e. the extent to which the demographics of sworn police officers mirror their local constituency’s demographic makeup, has an effect on communities. The study seeks to explain whether community complaints about police use of force are related to the representativeness of the police department.

Design/methodology/approach

The study examines the relationships between use of force complaints lodged against a police department and the representativeness of the police vis-à-vis their community using ordinary least squares regression and city fixed-effects models. The stratified sample of 100 large US cities uses data from the US Census Equal Employment Opportunity Survey and the Bureau of Justice Statistics Law Enforcement Management and Administration Statistics Survey from several points-in-time.

Findings

The analysis suggests that racial makeup and, to a lesser extent, local residency of police departments might matter in reducing community conflict with police, as represented by use of force complaints. However, the fixed-effects model suggests that unobserved community-level characteristics and context matter more than police departments’ representativeness.

Originality/value

This study seeks to provide a unique perspective and empirical evidence on community conflict with police by integrating the public administration theory of representative bureaucracy with criminal justice theories of policing legitimacy. The findings have implications for urban policing as well as law enforcement human capital and public management practices, which is essential to understand current crises in police-citizen relations in the US, especially in minority communities.

Details

Policing: An International Journal of Police Strategies & Management, vol. 39 no. 4
Type: Research Article
ISSN: 1363-951X

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Article
Publication date: 22 February 2021

Imran Khan, Mustafa Afeef, Shahid Jan and Anjum Ihsan

The purpose of this paper is to investigate the effect of heuristic biases, namely, availability bias and representativeness bias on investors’ investment decisions in the…

Abstract

Purpose

The purpose of this paper is to investigate the effect of heuristic biases, namely, availability bias and representativeness bias on investors’ investment decisions in the Pakistan stock exchange, as well as the moderating role of long-term orientation.

Design/methodology/approach

Using a structured questionnaire, a total of 374 responses have been collected from individual investors trading in PSX. The relationship was tested by applying the partial least square structural equation model using SmartPLS 3.2.2. Further, Henseler and Chin’s (2010) product indicator approach for moderation analysis was applied to the data set.

Findings

The results revealed that availability bias and representativeness bias have a significant and positive influence on the investment decisions of investors. Furthermore, a significant moderating effect of long term orientation on the effect of representativeness bias on investment decision is observed. This suggests that investors’ long term orientation weaken the effect of representativeness bias on investment decision. However, no significant moderating effect was observed for availability bias.

Originality/value

The paper provides novel insights on the role of heuristic-driven biases on the investment decisions of individual investors in the stock market. Particularly, it enhanced the understanding of behavioral aspects of investment decision-making in an emerging market.

Details

Qualitative Research in Financial Markets, vol. 13 no. 2
Type: Research Article
ISSN: 1755-4179

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Article
Publication date: 27 September 2019

Delphine Marie-Vivien, Aurélie Carimentrand, Stéphane Fournier, Claire Cerdan and Denis Sautier

The purpose of this paper is to advance our understanding of the links between the representativeness of the local community by those drafting and elaborating the…

Abstract

Purpose

The purpose of this paper is to advance our understanding of the links between the representativeness of the local community by those drafting and elaborating the specification of the geographical indication (GI), the market access and the use of the GI.

Design/methodology/approach

The present study followed a comparative research design, building upon primary data from the field works dealing with the elaboration and development of GIs worldwide, from legislations on the protection of GIs and from secondary data, i.e. literature dealing with the elaboration of the GI specifications at case level or national/international level.

Findings

The GI is permeable to a multitude of objectives and the management of controversies represent the “price of participatory democracy”, which still needs to be under the umbrella of the justice of peace, the State authority. Representativeness does not necessarily conduct to equity and fairness. It depends on the heterogeneity of the value chain, which might lead to the dilution of the GI specificity. Mandatory membership might not be always the best option Transparency to guarantee the producer’s group works for the common good is essential.

Originality/value

The controversies in the elaboration of the GI product specification are directly induced by the controversies in the management of the GI either by the collective organisation of producers or by the public authority. Issues such as representativeness, mandatory membership, transparency and heterogeneity of the value chain are deeply analysed to understand the functioning of GI producers associations and their limits. The state intervention as justice of the peace appears necessary.

Details

British Food Journal, vol. 121 no. 12
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 5 February 2018

Syed Zulfiqar Ali Shah, Maqsood Ahmad and Faisal Mahmood

This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange…

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7131

Abstract

Purpose

This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange (PSX), and the perceived efficiency of the market. Most studies focus on well-developed financial markets and very little is known about investors’ behaviour in less developed financial markets or emerging markets. The present study contributes to filling this gap in the literature.

Design/methodology/approach

Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 143 investors trading on the PSX. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis.

Findings

The paper provides empirical insights into the relationship of heuristic biases, investment decisions and perceived market efficiency. The results suggest that heuristic biases (overconfidence, representativeness, availability and anchoring) have a markedly negative impact on investment decisions made by individual investors actively trading on the PSX and on perceived market efficiency.

Research limitations/implications

The primary limitation of the empirical review is the tiny size of the sample. A larger sample would have given more trustworthy results and could have empowered a more extensive scope of investigation.

Practical implications

The paper encourages investors to avoid relying on heuristics or their feelings when making investments. It provides awareness and understanding of heuristic biases in investment management, which could be very useful for decision makers and professionals in financial institutions, such as portfolio managers and traders in commercial banks, investment banks and mutual funds. This paper helps investors to select better investment tools and avoid repeating expensive errors, which occur due to heuristic biases. They can improve their performance by recognizing their biases and errors of judgment, to which we are all prone, resulting in a more efficient market. So, it is necessary to focus on a specific investment strategy to control “mental mistakes” by investors, due to heuristic biases.

Originality/value

The current study is the first of its kind, focusing on the link between heuristics, individual investment decisions and perceived market efficiency within the specific context of Pakistan.

Details

Qualitative Research in Financial Markets, vol. 10 no. 1
Type: Research Article
ISSN: 1755-4179

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Article
Publication date: 7 September 2020

Tim A. Mau

The public administration literature on representative bureaucracy identifies several advantages from having a diverse public service workforce, but it has not explicitly…

Abstract

Purpose

The public administration literature on representative bureaucracy identifies several advantages from having a diverse public service workforce, but it has not explicitly focused on leadership. For its part, the public sector leadership literature has largely ignored the issue of gender. The purpose of this paper is to rectify these limitations by advancing the argument that having a representative bureaucracy is fundamentally a leadership issue. Moreover, it assesses the extent to which representativeness has been achieved in the Canadian federal public service.

Design/methodology/approach

The paper begins with a discussion of the importance of a representative bureaucracy for democratic governance. In the next section, the case is made that representativeness is fundamentally intertwined with the concept of administrative leadership. Then, the article provides an interpretive case study analysis of the federal public service in Canada, which is the global leader in terms of women's representation in public service leadership positions.

Findings

The initial breakthrough for gender representation in the Canadian federal public service was 1995. From that point onward, the proportion of women in the core public administration exceeded workforce availability. However, women continued to be modestly under-represented among the senior leadership cadre throughout the early 2000s. The watershed moment for gender representation in the federal public service was 2011 when the number of women in the executive group exceeded workforce availability for the first time. Significant progress toward greater representativeness in the other target groups has also been made but ongoing vigilance is required.

Research limitations/implications

The study only determines the passive representation of women in the Public Service of Canada and is not able to comment on the extent to which women are substantively represented in federal policy outcomes.

Originality/value

The paper traces the Canadian federal government's progress toward achieving gender representation over time, while commenting on the extent to which the public service reflects broader diversity. In doing so, it explicitly links representation to leadership, which the existing literature fails to do, by arguing that effective administrative leadership is contingent upon having a diverse public service. Moreover, it highlights the importance of gender for public sector leadership, which hitherto has been neglected.

Details

International Journal of Public Leadership, vol. 16 no. 4
Type: Research Article
ISSN: 2056-4929

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Article
Publication date: 1 April 1997

Roger Bennett

Three hundred and sixty‐seven members of the general public were interviewed in Surrey and Greater London in an attempt to ascertain whether they employed the…

Abstract

Three hundred and sixty‐seven members of the general public were interviewed in Surrey and Greater London in an attempt to ascertain whether they employed the representativeness heuristic when interpreting the corporate personas of UK building societies and banks. The representativeness heuristic is a simple decision‐making rule whereby an individual draws inferences about an organisation according to how closely it is perceived to resemble other organisations regarded as typical of a particular group (‘banks’ for example). It emerged that many respondents did indeed apply the representativeness heuristic in this context, resulting in their ignoring or paying little attention to a specific item of objectively useful information. The findings of previous research which concluded that building societies have ‘warmer’ and friendlier images than conventional banks are generally supported. An important observation was that building societies which in recent years have converted themselves into banking PLCs are still regarded by large numbers of people as possessing the same image attributes as unconverted building societies.

Details

Journal of Communication Management, vol. 2 no. 2
Type: Research Article
ISSN: 1363-254X

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Article
Publication date: 26 July 2011

Baojun Ma, Qiang Wei and Guoqing Chen

The purpose of this paper is to propose a framework for describing and evaluating the representativeness of a small set of search results extracted from the original…

Abstract

Purpose

The purpose of this paper is to propose a framework for describing and evaluating the representativeness of a small set of search results extracted from the original results: this is deemed desirable in information retrieval in enterprise information systems.

Design/methodology/approach

The paper proposes a combined measure, namely RFβ, to evaluate the extracted small set in terms of the notions of coverage and redundancy. Data experiments were conducted on three different extraction strategies to evaluate the representativeness, i.e. coverage and redundancy.

Findings

Both from intuitive and experimental perspectives, the proposed coverage measure, redundancy measure and RFβ measure could effectively evaluate the representativeness.

Research limitations/implications

The search results, e.g. in the form of documents and texts, are modeled using a vector space model and cosine similarity. Semantic models and linguistic models could be further introduced into this research to improve the proposed measures.

Practical implications

With the rapidly growing need for information retrieval in enterprise information systems, the representativeness of search results become more desirable and important for search engine users. The well‐designed representativeness measures will help them achieve satisfactory results.

Originality/value

The originality of the paper lies in the definition of representativeness of a small set of search results extracted from the original results. This focuses on the two aspects of coverage rate and redundancy rate both from intuitive and experimental perspectives.

Details

Journal of Enterprise Information Management, vol. 24 no. 4
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 1 March 2003

Philip A. Wickham

The representativeness heuristic generates a decision‐bias encouraging over‐estimation of the probability of low likelihood events when they are associated with strongly…

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5185

Abstract

The representativeness heuristic generates a decision‐bias encouraging over‐estimation of the probability of low likelihood events when they are associated with strongly context representative propositions. An experimental investigation into decision making by final year business undergraduates demonstrates that this heuristic operates and consistently affects subjects’ judgement of the probability of probe details about an entrepreneur in the representativeness‐generating context of the future success or failure of a proposed venture by that entrepreneur. The results suggest that the representativeness heuristic could hinder the quality of managerial decision making, especially decisions involving investment in new ventures. Evidence is generated in favour of a specifically cognitive source for this bias as opposed to a semantic mechanism proposed by some workers. This study adds to the growing literature on the representativeness bias in managerial decision making but is believed to be the first to consider it in an entrepreneurial context.

Details

Management Decision, vol. 41 no. 2
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 11 November 2020

Maqsood Ahmad, Syed Zulfiqar Ali Shah and Yasar Abbass

This article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.

Abstract

Purpose

This article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.

Design/methodology/approach

Entrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.

Findings

The article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.

Practical implications

The article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.

Originality/value

The current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Details

Management Decision, vol. 59 no. 3
Type: Research Article
ISSN: 0025-1747

Keywords

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