Group items tagged

daviding says: Categorizing problems as P-type, N-type and NP-type (i.e. NP-hard) provides a way for appreciating why managers avoid taking on some challenges. It's better to succeed on an easy problem, than fail on a hard one. (There's a easier-reading version of this article in Rotman Magazine Winter 2009 that seems to have been evolved for publication into Harvard Business Review in January 2009).

[from the introduction] We develop a model of cognitive choices managers implicitly make among and within problem complexity classes and argue that strategic managers use problem statements from one complexity class with greater regularity than those from other complexity classes to make sense of their predicaments (i.e. to transform 'situations' or 'raw feels' into 'problems' or 'puzzles'). We examine the marginal value to strategic managers of greater 'logical complexity' - parametrized by the marginal value of greater precision of an answer and the computational sophistication of competitors schema - to come up with a computationally precise formulation of 'ecological rationality'.