This research analyzes how individual differences affect performance in judgmental time-series forecasting. Decision makers with the ability to balance intuitive judgment with cognitive deliberation, as measured by the cognitive reflection test, tend to have lower forecast errors. This relationship holds when controlling for intelligence. Furthermore, forecast errors increase for very fast or very slow decisions. We provide evidence that forecast performance can be improved by manipulating decision speed.
All Science Journal Classification (ASJC) codes
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Management of Technology and Innovation