Managerial Economics Essay Example | Topics and Well Written Essays - 3000 words

Managerial Economics - Essay Example Rationality is considered as an important aspect of the behavioural theory (Simon, 2001). There is a distance between the behaviour and rationality and they are connected by the concept of decision making. A decision making process is common in an organization where the managers have to take various decisions in order to achieve the mission of the organization (Ethiraj and Levinthal, 2004). The aim for this paper is to evaluate the effectiveness of bounded rationality and the critical analysis of how the heuristics creates biasness towards decision making. The research would offer a scope to have a detailed analysis of bounded rationality as explained by Herbert Simon. According Herbert Simon (1961), rationality in behavioural characteristics of a person considers a relation of efficacy between the presumed end and the means to reach them (Kahneman, 2003). According to the researcher, the human beings lack in their rational behaviour due to the different aspects that is the rationality requires knowledge as well as understanding of the situation. However, the decision makers cannot be always called as rational because since they are likely to take decisions based on the available data and are unable to incorporate new information within their decision making process. According to the researcher, the organization must have a clear organizational goal so that the employees can work hard in order to achieve the goal (Simon, 2001). The organizations would have benefits for developing the organizational goals that helps in the organizational decision making process. It is said when the organizational members experience bounded rationality, managing the situations becomes much more difficult and the organizations are supposed to use both formal and informal control mechanisms in order to make the employees perform rationally (Simon, 2001). A theory of rational behaviour involves both the rationality of the individual as well

The Arbitration Provisions Introduced by the United Nations Research Paper

The Arbitration Provisions Introduced by the United Nations Conventions for Contracts of Carriage by Sea - Research Paper Example The Rotterdam Rules on arbitration emphasizes the right of disputants to choose an arbitration forum that is more convenient to them. At the same time, volume contracts limit these choices and also bind third parties to arbitration agreements between the disputants.3 It therefore appears that the Rotterdam Rules’ arbitration provision contain a number of problems that can be counterproductive to the goal of harmonisation of the international rules applicable to contracts for the carriage of goods by sea. In addition to conflicts contained within the provisions and definition complications, there is also the possibility that arbitration on a single dispute can take place in several places. It is also possible that states adopting the arbitration provisions may not have the maritime expertise to properly resolve maritime disputes or may lack a litigation system capable of supporting arbitration proceedings. This is particularly so since the Rotterdam Rules can apply to contracts for the carriage of goods by means other than by sea, at least partially.4 This research study provides a critical analysis of the arbitration provisions of the Rotterdam Rules and identifies the intended goals of these provisions and the extent to which the Rotterdam Rules have the potential to achieve these goals. Table of Contents Abstract 2 Introduction 4 Research Questions 7 Primary Research Question 8 Secondary Research Questions 8 Statement of the Problem 8 Significance of the Study 9 Delimitation of the Study 10 Research Methodology 10 Overview: International Arbitration of Maritime Contracts 11 The Arbitration Provisions of the Rotterdam Rules 14 Scope and Application of the Rotterdam Rules 14 Arbitration Agreements 17 Volume Contracts 21 Non-Liner Transport 27 The Opt-In Provision 29 Conflict with Other International Instruments 32 Conclusion and Recommendations 34 Conclusion 34 Recommendations 36 Bibligraphy 39 Introduction The Rotterdam Rules introduces into the interna tional regulatory framework a method for regulating â€Å"multimodal transport†.5 In this regard, multimodal transport not only refers to transport by virtue of sea, but also contemplates various other modes of transportation.6 In drafting the Rotterdam Rules the United Nations came to the conclusion that the more than 90 year old Hague Convention was inadequate for responding to the modern intricacies of international cargo transport particularly since today’s transport frequently involves several different modes of transportation. The use of different conventions only created difficulties and conflicts in establishing liability since different rules apply to different transport modes.7 Regardless, the main premise of the Rotterdam Rules is maritime transport and thus, the Rules may be properly defined as a â€Å"maritime plus convention.†8 The Rotterdam Rules introduce arbitration provisions for resolving disputes in specific contracts for carriage by sea situ ations.9 The