Applying bounded rationality to information disposition: development of a risk/reward heuristic

This paper aims to examine the implications of applying Herbert Simon’s bounded rationality to records and information management (RIM) and the possibility that a risk/reward heuristic may be part of the disposition decision-making cognitive process. This in turn may improve the understanding of disposition and its suboptimal results and offer alternatives in understanding why certain behaviors exist around keeping information beyond its retention; and to possibly alter this behavior. This in turn may improve the application of information life-cycle policies through the development of new decision-making heuristics for information retention.

This paper examines disposition of information and how the addition of bounded rationality may improve the understanding of why disposition has not been as successful as it might be.

This paper concludes that bounded rationality could elevate the RIM function and alter how RIM practitioners within the private sector understand how appraisal and therefore disposition of information occurs. Further, the inclusion of bounded rationality into disposition decision-making may create new roles for practitioners and extend the influence and reach of RIM. Future developments must be watched and analyzed to see if this approach becomes the norm.

This paper will be of interest to stakeholders responsible for valuing information, appraisal/disposition of information, life-cycle management, records management, information management and big data analytics. The work is original, but parts of this subject were previously addressed in another study.

Parts of this work were part of a PhD study by this author.