Linear aggregation models employing unit and equal weights have been shown to be superior to human decisions in a surprising range of decision situations. In addition, decisions based on these models have often been found to be superior to those based on linear regression models (LRMs). This...

Utility functions for profits and losses are obtained on 14 practicing auditors. Data were elicited through personal interviews with audit partners and seniors. The appropriate utility functions that describe the risk characteristics of the auditors and fit the certainty equivalent responses are...

An experiment involving a simulated financial lending organization was used to compare subjects' decisions regarding the degree to which the organization should be informationally centralized, with that of an optimal decision rule based on a normative model. Typically, subjects overdecentralized...