scholarly journals A Survey on Entropy and Economic Behaviour

Entropy ◽  
2020 ◽  
Vol 22 (2) ◽  
pp. 157 ◽  
Author(s):  
Ziv Hellman ◽  
Ron Peretz
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Repeated Games ◽  
Natural Extension ◽  
Partial Ordering ◽  
Limited Attention ◽  
Interactive Games ◽  
Economic Behaviour ◽  
The Difference ◽  
Bounded Recall

Entropy plays a significant role in the study of games and economic behaviour in several ways. A decision maker faced with an n-fold repetition of a decision-making problem needs to apply strategies that become increasingly complex as n increases. When several players are involved in selecting strategies in interactive games, bounds on the memories and cognitive capacities of the players can affect possible outcomes. A player who can recall only the last k periods of history is said to have bounded recall of capacity k. We present here a brief survey of results of games played by players with different bounded recall capacities, in particular those indicating surprisingly strong relations between memory and entropy in the study of the min-max values of repeated games with bounded recall. In addition, we consider uses of entropy in measuring the value of information of noisy signal structures, also known as experiments. These are represented by stochastic matrices, with the rows representing states of the world and the columns possible signals. The classic ordering of experiments, due to David Blackwell and based on decision-making criteria, is a partial ordering, which has led to attempts to extend this ordering to a total ordering. If a decision maker has a prior distribution over the states, receipt of a signal yields a posterior. The difference between the entropy of a prior and the expected entropy of the set of possible posteriors has been proposed as a natural extension of the Blackwell ordering. We survey this alongside the theory of rational inattention, which posits that, since individuals have limited attention, they do not always follow every single piece of economic news in planning their economic behaviour. By modelling attention limits as finite channel capacity in the sense of Shannon, economists have developed a theory that explains a range of observed economic behavioural phenomena well.

Models of Transformative Decision-Making

2020 ◽  
pp. 73-99
Author(s):  
Samuel Zimmerman ◽  
Tomer Ullman
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Decision Maker ◽  
Hierarchical Model ◽  
Distance Function ◽  
Decision Process ◽  
Core Beliefs ◽  
Transformative Experience ◽  
Novel Objects ◽  
The Difference

Deciding to undergo a transformative experience present unique challenges for a reasonable decision-maker, and for any attempt to give a formal account of how people can make such decisions. This chapter focuses on the challenges of novelty and change. It develops a normative hierarchical model for decision-making over novel objects, and show how it captures the commonsense intuition that we can rationally decide to try a new experience, but also that such decisions can be graded in difficulty. It then presents a framework for how people can think about big decisions that will affect their core beliefs, desires, and ultimately themselves, by modeling this as a decision process of choosing between different selves. Empirical evidence is used to refine different sub-models of this meta-reasoning process, including the asymmetric treatment of current and future utilities, the difference between future utilities and future beliefs, and a distance function between selves that is separate from considerations of future happiness.

scholarly journals A Satisficing Heuristic Decision-Making Model under Limited Attention and Incomplete Preferences

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Xinlin Wu ◽  
Daoxin Ding
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Choice Theory ◽  
Time Pressure ◽  
Choice Model ◽  
Incomplete Preferences ◽  
Limited Attention ◽  
Limited Information ◽  
Choice Procedure ◽  
Decision Making Model

Classical choice theory assumes that a decision-maker considers all feasible alternatives. However, a decision-maker in the real world can not consider all alternatives because of limited attention. In this paper, we propose a satisficing choice model to describe the choice procedure based on the incomplete preferences under the limited attention of the decision-maker. Moreover, the existence and rationality properties of the satisficing choice model on the different domains are studied combined with some proposed rationality conditions. Further, the proposed satisficing choice model is applied to a case of quality competition. Results show that the satisficing choice model of this paper is of a certain theoretical guiding significance to a kind of emergency decisions made by decision-makers under the circumstance of time pressure and limited information. It can also be the theoretical foundation for the study on the boundedly rational decision-making.

Information support for expert evaluation of the states of the external environment

2020 ◽  
pp. 71-76
Author(s):  
Rasol Murtadha Najah
Keyword(s):  
Decision Making ◽  
Environmental Conditions ◽  
Fuzzy Inference ◽  
Environmental Parameters ◽  
Information Support ◽  
Expert Assessment ◽  
Fuzzy Variables ◽  
Decision Making Models ◽  
The Difference ◽  
State Of The Environment

This article discusses the application of methods to enhance the knowledge of experts to build a decision-making model based on the processing of physical data on the real state of the environment. Environmental parameters determine its ecological state. To carry out research in the field of expert assessment of environmental conditions, the analysis of known works in this field is carried out. The results of the analysis made it possible to justify the relevance of the application of analytical, stochastic models and models based on methods of enhancing the knowledge of experts — experts. It is concluded that the results of using analytical and stochastic objects are inaccurate, due to the complexity and poor mathematical description of the objects. The relevance of developing information support for an expert assessment of environmental conditions is substantiated. The difference of this article is that based on the analysis of the application of expert methods for assessing the state of the environment, a fuzzy logic adoption model and information support for assessing the environmental state of the environment are proposed. The formalization of the parameters of decision-making models using linguistic and fuzzy variables is considered. The formalization of parameters of decision-making models using linguistic and fuzzy variables was considered. The model’s description of fuzzy inference is given. The use of information support for environment state assessment is shown on the example of experts assessing of the land desertification stage.

A novel q-rung orthopair fuzzy TODIM approach for multi-criteria group decision making based on Shapley value and relative entropy

2021 ◽  
Vol 40 (1) ◽  
pp. 235-250
Author(s):  
Liuxin Chen ◽  
Nanfang Luo ◽  
Xiaoling Gou
Keyword(s):  
Decision Making ◽  
Relative Entropy ◽  
Group Decision Making ◽  
Shapley Value ◽  
Group Decision ◽  
Similarity Measures ◽  
Entropy Measure ◽  
Shapley Values ◽  
Interactive Relationship ◽  
The Difference

In the real multi-criteria group decision making (MCGDM) problems, there will be an interactive relationship among different decision makers (DMs). To identify the overall influence, we define the Shapley value as the DM’s weight. Entropy is a measure which makes it better than similarity measures to recognize a group decision making problem. Since we propose a relative entropy to measure the difference between two systems, which improves the accuracy of the distance measure.In this paper, a MCGDM approach named as TODIM is presented under q-rung orthopair fuzzy information.The proposed TODIM approach is developed for correlative MCGDM problems, in which the weights of the DMs are calculated in terms of Shapley values and the dominance matrices are evaluated based on relative entropy measure with q-rung orthopair fuzzy information.Furthermore, the efficacy of the proposed Gq-ROFWA operator and the novel TODIM is demonstrated through a selection problem of modern enterprises risk investment. A comparative analysis with existing methods is presented to validate the efficiency of the approach.

scholarly journals What’s in a (Change of) Name? Much—but Not That Much—and Not What Wiebe Claims

2020 ◽  
Vol 32 (2) ◽  
pp. 159-184 ◽  
Author(s):  
Satoko Fujiwara ◽  
Tim Jensen
Keyword(s):  
Decision Making ◽  
Executive Committee ◽  
International Association ◽  
International Committee ◽  
Academic Standards ◽  
General Assembly ◽  
Final Decision ◽  
Points Of View ◽  
The Difference ◽  
Consultative Body

Abstract Donald Wiebe claims that the IAHR leadership (already before an Extended Executive Committee (EEC) meeting in Delphi) had decided to water down the academic standards of the IAHR with a proposal to change its name to “International Association for the Study of Religions.” His criticism, we argue, is based on a series of misunderstandings as regards: 1) the difference between the consultative body (EEC) and the decision-making body (EC), 2) the difference between the preliminary points of view of individuals and final proposals by the EC, 3) personal conversations, 4) the link between the proposal to change the name and the wish to tighten up the academic profile of the IAHR. Moreover, if the final decision-making bodies, the International Committee and the General Assembly, adopt the proposal, the new name as little as the old can make the IAHR more or less scientific. Tightening up the academic, scientific profile of the IAHR takes more than a change of name.

Health determinants in Canadian northern environmental impact assessment

Polar Record ◽  
2006 ◽  
Vol 42 (4) ◽  
pp. 315-324 ◽  
Author(s):  
Jackie Bronson ◽  
Bram F. Noble
Keyword(s):  
Decision Making ◽  
Environmental Impact ◽  
Impact Assessment ◽  
Environmental Impact Assessment ◽  
Health Impact ◽  
Life Cycles ◽  
Local Context ◽  
Health Determinants ◽  
Limited Attention

The need to address the human health implications of northern development is well founded, and the role of health determinants in environmental impact assessment is increasingly recognised; however, there is limited understanding of the nature of health determinants and current practices in northern project assessment and decision making. This paper reports on a study of the nature and use of health determinants in Canadian northern environmental impact assessment, and discusses the key challenges to, and opportunities for, improved practice. Four themes emerged from this study. First, the consideration of health is limited to physical environments and the physical determinants of health, with limited attention to broader social and cultural health determinants. Second, when health is considered in northern project impact assessments such considerations rarely carry forward to post-project approval monitoring of health determinants and evaluation of health impact management programmes. Third, while there is general consensus that health determinants should be an integral part of northern impact assessment, there exist different expectations of the role of health determinants in project evaluation and decision making due in large part to different understandings and interpretations of health. Finally, a broader conceptualisation of health and health determinants in northern environmental impact assessment is required; one that takes into consideration northern cultures and knowledge systems, and is adaptive to local context, geography and life cycles.

scholarly journals Developing an approach for decision making units integration using multi objective particle swarm optimization

2014 ◽  
Vol 4 (1) ◽  
pp. 48 ◽  
Author(s):  
Abdorrahman Haeri ◽  
Kamran Rezaie ◽  
Seyed Morteza Hatefi
Keyword(s):  
Decision Making ◽  
Particle Swarm Optimization ◽  
Performance Measures ◽  
Particle Swarm ◽  
Final Decision ◽  
Swarm Optimization ◽  
Multi Objective ◽  
Decision Making Unit ◽  
The Difference ◽  
Decision Making Units

In recent years, integration between companies, suppliers or organizational departments attracted much attention. Decision making about integration encounters with major concerns. One of these concerns is which units should be integrated and what is the effect of integration on performance measures. In this paper the problem of decision making unit (DMU) integration is considered. It is tried to integrate DMUs so that the considered criteria are satisfied. In this research two criteria are considered that are mean of efficiencies of DMUs and the difference between DMUs that have largest and smallest efficiencies. For this purpose multi objective particle swarm optimization (MOPSO) is applied. A case with 17 DMUs is considered. The results show that integration has increased both considered criteria effectively.  Additionally this approach can presents different alternatives for decision maker (DM) that enables DM to select the final decision for integration.

A preliminary study of gray matter volume differences related to context-dependent and independent decision-making

2021 ◽  
Author(s):  
Zhang Jinbo
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Gray Matter ◽  
Cognitive Bias ◽  
Gray Matter Volume ◽  
Neural Basis ◽  
Matter Volume ◽  
Decision Styles ◽  
Context Dependent ◽  
Independent Decision

Facing the high degree of uncertainty of the environment, we have evolved two kinds of decision-making styles: context-dependent and context-independent decision. However, the underlying neural basis of these two kinds of decision styles was mostly unknown. Here, the cognitive bias task was applied to split participants into the context-independent decision-maker and context-dependent decision-maker based on the cognitive bias task scores. Then, we used voxel-based morphometry to directly investigate its underlying differences in gray matter volume. We found that the gray matter volume of the prefrontal cortex and parietal regions, such as inferior parietal lobule, was larger in context-dependent decision-makers than that of the context-independent decision-maker.

Moderator role of old and new Y generation differences in the effect of perceptions of self-efficiency on decision-making strategies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hasan Tutar ◽  
Ahmet Tuncay Erdem ◽  
Ömer Karademir
Keyword(s):  
Decision Making ◽  
Generation Y ◽  
Self Efficacy ◽  
Quantitative Research ◽  
Business Models ◽  
Generation Gap ◽  
Management Approach ◽  
Content Type ◽  
The Difference ◽  
New Generation

Purpose There has been a rapid generational change in the business world in Turkey recently, and X generation managers are rapidly leaving their place to Y generation managers. In countries with relatively young populations such as Turkey, management in family businesses passes into the hands of Generation Y. This study aims to examine the moderator role of the difference between old and new generation Y in the effect of self-efficacy perceptions on decision-making strategies. Design/methodology/approach This research, which was designed according to the quantitative research method, was designed according to the cross-sectional survey model, one of the general survey models. The research data were collected from a sample of 441 family business managers determined according to the simple random sampling technique. The data were analyzed and interpreted with various statistical techniques. Data analysis was done with AMOS. 20 and International Business Machines statistical package for the social sciences 22 data analysis programs. Findings According to the analysis findings, there is a significant relationship between the participants’ self-efficacy perceptions and decision-making strategies. Research findings old and new generation Y managers have different decision strategies. The research results showed that the dominant self-efficacy perceptions of the Y generation affect their decision-making strategies. Research limitations/implications This research only examines whether the old and new generation Y perceptions have a moderator function in the relationship between the participants’ self-efficacy perceptions and decision-making strategies. The research is quantitative research limited to family businesses. The results can be compared by repeating the research with other variables and in different samples, for example, by researching in public institutions. In addition, the way of reflecting the differences in perception to the management can be subjected to deeper analysis with mixed studies. Practical implications One of the important reasons for the difference in people’s approaches to events is their personality structure. Generational differences, which have been discussed primarily in recent years, make themselves felt in working life. The new working models arising from the different perspectives of the Y generation differ from the traditional business models. Today, in traditional business models, the manager profile is usually the X generation. However, the process is moving toward gaining essential positions in the management levels of the new Y generation. They put traditional managers in a difficult situation with their impatient behavior and desire to climb the career ladder quickly. Social implications In the studies conducted on the Y generation, it is understood that they do not favor the classical management approach based on the command-command relationship. The sense of loyalty of the Y generation is low compared to other generations and their organizational commitment levels are weak. There are determinations that they attach importance to flexible working style and want to do business using digital technologies. They are highly motivated in setting vision and participating in strategic decisions in organizations. These features differ significantly from the X-generation managers who adopt the traditional management approach. Originality/value Both emotional and cognitive characteristics influence decision-making behavior. The generation gap which shows common personality structures in a certain period is an important predictor of decision-making strategy. Research results and related studies significantly affect the decision strategies of the generation gap. No research has been found comparing the old and new Y generations. In this respect, it is thought that the research will contribute to theory, practice and method.

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