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Information Overload in Multi-Stage Selection Procedures

Author

Listed:
  • Stefano Ficco

    (Faculty of Economics, Erasmus Universiteit Rotterdam)

  • Vladimir A. Karamychev

    (Faculty of Economics, Erasmus Universiteit Rotterdam)

Abstract

The paper studies information processing imperfections in a fully rational decision-making network. It is shown that imperfect information transmission and imperfect information acquisition in a multi-stage selection game yield information overload. The paper analyses the mechanisms responsible for a seeming bounded rational behavior of the network and shows their similarities and distinctions. Two special cases of filtering selection procedures are investigated, where the overload takes its most limiting forms. The model developed in the paper can be applied both to organizations and to individuals. It can serve as a rational foundation for bounded rationality.

Suggested Citation

  • Stefano Ficco & Vladimir A. Karamychev, 2004. "Information Overload in Multi-Stage Selection Procedures," Tinbergen Institute Discussion Papers 04-077/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040077
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    File URL: https://papers.tinbergen.nl/04077.pdf
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    References listed on IDEAS

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    Cited by:

    1. Stefano Ficco, 2004. "Information Overload in Monopsony Markets," Tinbergen Institute Discussion Papers 04-082/1, Tinbergen Institute.
    2. Stefano Ficco & Vladimir Karamychev, 2005. "Evaluation Problem versus Selection Problem in Organizational Structures," Tinbergen Institute Discussion Papers 05-058/1, Tinbergen Institute.

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    More about this item

    Keywords

    Screening; Multistage Selection; Information Overload; Bounded Rationality;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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