Testing behavioral simulation models by direct experiment

Article Abstract:

Decision-making mechanisms in large organizations are described. Simulation modeling is used because of its ability to represent complexity, feedback, nonlinearity, and time lags. Interactive gaming is employed in an institutional context and then compared against the decision rules of the model. The model concerns capital investment. After the players make their decisions, the decisions are compared with the model to note variances. The model takes into consideration the multiplier and accelerator effects. The players try to balance supply and demand over time. Results of the modeling indicate that experimental methods are a complementary approach to econometrics in testing simulation models.

author: Sterman, John D.
Management, Capital investments, Simulation methods, Simulation

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Cognitive process as a basis for MIS and DSS design

Article Abstract:

Cognitive process research offers specific, operational parameters for MIS-DSS design by characterizing the specific influence that sensing, formulation, and problem-solving have on managers' cognitive processes. The kind of guidelines that cognitive process research can offer are outlined in the context of a literature review and Piaget's model. Topical areas for future research are outlined in the framework of selection, application, and development of logico-mathematical-structures.

author: Ramaprasad, Arkalgud
Usage, System design, Systems analysis, Problem solving, Management information systems, Decision support systems

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Dominance conditions for multivariate utility functions

Article Abstract:

A comparison of distribution functions, as in the univariate case, and a comparison with random variables defined on the same probability space are used as expressions for determining stochastic dominance conditions. These conditions are given for n-variate utility functions where k-variate risk aversion is assumed for k = 1,2,...,n.

author: Scarsini, Marco
Models, Risk assessment, Stochastic analysis, Multivariate analysis

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subjects list: Decision-making, Decision making, Analysis
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