scholarly journals Project Capital Allocation Combination Equilibrium Decision Model Based on Behavioral Option Game

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Meirui Zhong ◽  
Anqi Zeng ◽  
Jianbai Huang ◽  
Kairong Hong
Keyword(s):  
Decision Making ◽  
Utility Function ◽  
Decision Model ◽  
Trigger Point ◽  
Capital Allocation ◽  
Project Managers ◽  
Option Value ◽  
Allocation Decision ◽  
Game Equilibrium ◽  
Behavioral Option

Aiming at option value of the project and fairness preference psychological utility features, this paper modified objective function between players by option game equilibrium and utility function of project managers by inequity aversion. Therefore, under the symmetric and asymmetric information conditions, a project capital allocation combination equilibrium decision model has been built. It draws a conclusion that the option value of projects has changed the utility function of shareholders and managers in capital allocation, whereas fairness preferences of the project managers have changed the way of allocation through psychological utility. These two effects have influenced the trigger point of capital allocation decision-making. One is the decrease of trigger point owing to capital allocation decision-making of a CEO affected by the option value; the other is the reaction due to the crowding-out and crowding-in effect of the project manager’s fairness preference, which restrains the severity of underinvestment. Therefore, a good incentive plan should be a balance among insurance, incentive, and fairness, not only a balance between insurance and incentive.

scholarly journals A multi-criteria approach for selecting the utility function of the historical building "Stara Polana" located in Zakopane

2019 ◽  
Vol 262 ◽  
pp. 07002 ◽  
Author(s):  
Małgorzata Fedorczak- Cisak ◽  
Alicja Kowalska ◽  
Elżbieta Radziszewska – Zielina ◽  
Grzegorz Śladowski ◽  
Filip Pachla ◽  
...  
Keyword(s):  
Decision Making ◽  
Utility Function ◽  
Energy Efficient ◽  
Decision Model ◽  
Historical Building ◽  
Historic Building ◽  
Decision Making Model ◽  
Energy Efficient Building

In this article, the authors present a proposal for a hybrid decision model in order to select a utility function for a historic building, taking into consideration the criteria of the Małopolska Certificate of Energy Efficient Building as well as additional criteria for the comfort of the users. The description of the criteria and the proposed decision-making model focus on the Stara Polana historical building, which is located in Zakopane.

Applying the Multi-Criteria Decision Making Model for Ranking Commercial Banks: The Case of Vietnam

2019 ◽  
pp. 125-133
Author(s):  
Duong Truong Thi Thuy ◽  
Anh Pham Thi Hoang
Keyword(s):  
Decision Making ◽  
Commercial Banks ◽  
Decision Model ◽  
Business Models ◽  
Multi Criteria Decision Making ◽  
Ideal Solution ◽  
Topsis Method ◽  
Decision Making Model

Banking has always played an important role in the economy because of its effects on individuals as well as on the economy. In the process of renovation and modernization of the country, the system of commercial banks has changed dramatically. Business models and services have become more diversified. Therefore, the performance of commercial banks is always attracting the attention of managers, supervisors, banks and customers. Bank ranking can be viewed as a multi-criteria decision model. This article uses the technique for order of preference by similarity to ideal solution (TOPSIS) method to rank some commercial banks in Vietnam.

scholarly journals Determinant Factors in Personal Decision-Making to Adopt COVID-19 Prevention Measures in Chile

2021 ◽  
Vol 18 (15) ◽  
pp. 8131
Author(s):  
Karina Fernanda Gonzalez ◽  
Maria Teresa Bull ◽  
Sebastian Muñoz-Herrera ◽  
Luis Felipe Robledo
Keyword(s):  
Decision Making ◽  
Decision Model ◽  
Protective Action ◽  
Prevention Measures ◽  
Protective Measures ◽  
Protective Action Decision Model ◽  
Exploratory Survey ◽  
Relevant Variables ◽  
Personal Decision ◽  
Action Decision

The pandemic has challenged countries to develop stringent measures to reduce infections and keep the population healthy. However, the greatest challenge is understanding the process of adopting self-care measures by individuals in different countries. In this research, we sought to understand the behavior of individuals who take self-protective action. We selected the risk homeostasis approach to identify relevant variables associated with the risk of contagion and the Protective Action Decision Model to understand protective decision-making in the pandemic. Subsequently, we conducted an exploratory survey to identify whether the same factors, as indicated in the literature, impact Chile’s adoption of prevention measures. The variables gender, age, and trust in authority behave similarly to those found in the literature. However, socioeconomic level, education, and media do not impact the protection behaviors adopted to avoid contagion. Furthermore, the application of the Protective Action Decision Model is adequate to understand the protective measures in the case of a pandemic. Finally, women have a higher risk perception and adopt more protective measures, and in contrast, young people between 18 and 30 years of age are the least concerned about COVID-19 infection.

The value of sociality

foresight ◽  
2014 ◽  
Vol 16 (4) ◽  
pp. 309-328 ◽  
Author(s):  
Evgeniya Lukinova ◽  
Mikhail Myagkov ◽  
Pavel Shishkin
Keyword(s):  
Decision Making ◽  
Utility Function ◽  
Social Relationship ◽  
Social Utility ◽  
Content Type ◽  
Individual Level ◽  
Know How ◽  
General Utility ◽  
The Social ◽  
Individual Decisions

Purpose – This paper aims to study the value of sociality. Recent experimental evidence has brought to light that the assumptions of the Prospect Theory by Kahneman and Tversky do not hold in the proposed substantive domain of “sociality”. In particular, the desire to be a part of the social environment, i.e. the environment where individuals make decisions among their peers, is not contingent on the framing. Evolutionary psychologists suggest that humans are “social animals” for adaptive reasons. However, entering a social relationship is inherently risky. Therefore, it is extremely important to know how much people value “sociality”, when the social outcomes are valued more than material outcomes and what kinds of adaptations people use. Design/methodology/approach – We develop a new theory and propose the general utility function that features “sociality” component. We test the theory in the laboratory experiments carried out in several countries. Findings – Our results suggest that when stakes are low the theory of “sociality” is successful in predicting individual decisions: on average, people do value “sociality” and it surpasses the monetary loss. Originality/value – The main contribution of this paper is the breakdown of the risk attitudes under low stakes and individual level of decision-making. Another advancement is the ability to formalize the social utility or the theory of “sociality” in an economic model; we use general utility function that we define both on the outcomes and on the process of the decision-making itself and test in laboratory studies.

scholarly journals Capital allocation and delegation of decision-making authority within firms

2015 ◽  
Vol 115 (3) ◽  
pp. 449-470 ◽  
Author(s):  
John R. Graham ◽  
Campbell R. Harvey ◽  
Manju Puri
Keyword(s):  
Decision Making ◽  
Capital Allocation

Research on Investment Decision-Making of the Low-Carbon Industrial Listed Company Based on the Uncertainty Set Pair Analysis

2010 ◽  
Vol 39 ◽  
pp. 568-574
Author(s):  
Jun Fei Chen ◽  
Jian Qiao Lin
Keyword(s):  
Decision Making ◽  
Decision Model ◽  
Listed Company ◽  
Investment Decision ◽  
Set Pair Analysis ◽  
Low Carbon ◽  
Development Mode ◽  
Investment Decision Making ◽  
Uncertainty Set ◽  
Pair Analysis

As a new economical development mode, “low-carbon economic” is attracting more and more attention all over the world. In this paper, associating with the development background of the low-carbon industry, we applied the uncertainty set pair analysis (SPA) into the investment decision-making of the listed company, and established the investment decision model based on the uncertainty SPA. As a case, we made investment decision analysis to 12 typical low-carbon industrial listed companies selected. The results show that it is effective and applicable, and the research is helpful for the investors conducting decision-making.

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