take much of the decision-making prerogatives related to huge pension fund and mutual fund trades away from human operators. It is also true, of course, that human operators designed and constructed the decision model.
A major contribution of computer technology to the decision-making process in the stock market is the conservation of time with respect to dealing with information overload. A second important contribution is that computers enable managers and traders to make better use of often inadequate information. Further, computer technology makes it possible to efficiently manipulate information so that it can be used effectively in problem-solving models.
No "decision can be better than the information upon which it is based" (Gortner, 1986, p. 132). One of the more important characteristics of computer technology is the capability it creates to provide a vast amount of information to a decision-maker in a relatively short period of time. While some information is superior to no information, more information is not necessarily superior to less information. What is also significant about computer developed information is that it is typically high quality, as well as being massive and timely.
The application of computer technology also has the capability of improving information. Such improvement occurs in stock market applications through a number of processes, including (1) the
...