Question

Is there a natural bias to neglect the long run and concentrate too much on the short run in decision-making?

Answer 1

Yes its a natural bias to take into consideration the short run decision rather tha the long run ones,long run decisions depends on a number of factors which are uncertain as they are dependent upon the future conditions but the short run decisions are in context with the events taking place around the industry and would effect the industry more.

Hence all the focus is laid on short run decisions as with the increasing uncetainity at the market place we come across short term investors and in order to lure them we need to come up with certain policies that are lucarative enough to attract the investors as well as keep a hold on to them by constantly coming up with ideas that are beneficial in a short term to the investors.