scholarly journals Are Business Management Games a Suitable Tool for Analyzing the Boundedly Rational Behavior of Economic Agents?

2011 ◽  
Vol 02 (04) ◽  
pp. 468-478
Author(s):  
Oliver Musshoff ◽  
Norbert Hirschauer ◽  
Philipp Hengel
Keyword(s):  
Business Management ◽  
Rational Behavior ◽  
Economic Agents ◽  
Suitable Tool ◽  
Management Games ◽  
Boundedly Rational Behavior

scholarly journals THE E-MAIL GAME REVISITED — MODELING ROUGH INDUCTIVE REASONING

2007 ◽  
Vol 09 (02) ◽  
pp. 323-339 ◽  
Author(s):  
UWE DULLECK
Keyword(s):  
Information Structure ◽  
Common Knowledge ◽  
Inductive Reasoning ◽  
Rational Behavior ◽  
To Come ◽  
Boundedly Rational Behavior ◽  
Expected Payoffs ◽  
E Mail

I study the robustness of Rubinstein's (1989) E-Mail Game results by varying the information that players can utilize. The article follows one of Morris' (2002) reactions to the E-Mail game "that one should try to come up with a model of boundedly rational behavior that delivers predictions that are insensitive to whether there is common knowledge or a large number of levels of knowledge". Players in my model are presumed to use 'rough inductive reasoning' because they cannot utilize exact information. The information structure in the E-Mail game is generalized and the conditions are characterized under which Rubinstein's results hold. I find that rough inductive reasoning generates a payoff dominant equilibrium where the expected payoffs change continuously (instead of discretely) in the probability of "faulty" communication.

scholarly journals Sustainable Management of Contemporary Art Galleries: A Delphi Survey for the Spanish Art Market

2019 ◽  
Vol 11 (2) ◽  
pp. 541 ◽  
Author(s):  
Alicia Mateos-Ronco ◽  
Nieves Peiró Torralba
Keyword(s):  
Contemporary Art ◽  
Delphi Method ◽  
Sustainable Management ◽  
Supply And Demand ◽  
Business Management ◽  
Art Market ◽  
Art Galleries ◽  
Economic Agents ◽  
Economic Markets ◽  
Spanish Art

The art market operates in a very different way from conventional economic markets, ranging from its behaviors of supply and demand, the trading of goods, and the economic agents intervening in it. In addition, it is a highly unregulated market, with very little standardized information in economic terms. This paper focuses on art galleries, which are the most influential intermediaries in the Spanish primary contemporary fine-art market and perform a role that goes beyond the mere distribution of works of art. This study develops and applies a prospective methodology based on the subjective information compiled by experts, known as the Delphi method, to identify and evaluate the factors that determine the current situation and future outlook for Spanish contemporary art galleries. The results show, on one hand, that the method employed constitutes a valid option to provide reliable information. In addition, they show that the survival of these organizations will depend on their ability to adapt to the changing conditions of the economic environment, reactivating and internationalizing demand, and redirecting their business model towards sustainable management by implementing appropriate business management models and techniques.

scholarly journals Sustainable Development Concepts as a Response to Expectations of Modern Business Management

2019 ◽  
Vol 71 ◽  
pp. 04008
Author(s):  
D.V. Filatova ◽  
R.V. Fedorenko
Keyword(s):  
Optimal Control ◽  
Sustainable Development ◽  
System Analysis ◽  
Business Management ◽  
Management Systems ◽  
Business Activity ◽  
General Equilibrium Theory ◽  
Economic Agents ◽  
Economic Level ◽  
Modern Business

The interactions among individual economic agents require some regulations to hedge the risk of business activity. This paper examines the general equilibrium theory, backgrounds of system analysis and optimal control to show that these regulations present the mechanism of balanced management of economic processes at various economic level (enterprise, region, country). The study shows that sustainable development is self-regulatory and adaptive effort to remain on the market under the condition of reliable cooperation. Furthermore, by investigating the hierarchy of the business management systems, the conceptual and mathematical models of the mechanism for sustainable development are built and illustrated.

scholarly journals Using Business Management Games as Research Tools in Food Retailing — A Case Study

1975 ◽  
Vol 7 (1) ◽  
pp. 205-210
Author(s):  
Larry D. Jones
Keyword(s):  
Business Management ◽  
Economic Behavior ◽  
Management Game ◽  
Food Retailing ◽  
Behavioral Studies ◽  
Data Generator ◽  
Management Games ◽  
And Performance ◽  
Organizational Affiliation

Performance in the food retailing industry varies over time, among competitive markets, and among different organizational affiliations. This paper reports the results of a recent study which examined variation in firm behavior and performance which could be attributed to three phenomena: differences in organizational affiliation, differences among managers within an organizational affiliation, and differences in the competitive environment under which retailers operate. This study differed from some previous behavioral studies in that an experimental business management game was used as the data generator. A central thrust of this study was to evaluate business gaming as a tool which allowed testing of hypotheses concerning economic behavior.

scholarly journals Bounded Rationality in Principal-Agent Relationships

2017 ◽  
Vol 18 (4) ◽  
pp. 411-443
Author(s):  
Mathias Erlei ◽  
Heike Schenk-Mathes
Keyword(s):  
Experimental Data ◽  
Moral Hazard ◽  
Agency Theory ◽  
Bounded Rationality ◽  
Social Preferences ◽  
Principal Agent ◽  
Rational Behavior ◽  
Quantal Response ◽  
Boundedly Rational Behavior ◽  
Hidden Action

Abstract We conducted six treatments of a standard moral hazard experiment with hidden action. The behavior in all treatments and periods was inconsistent with established agency theory. In the early periods, behavior differed significantly between treatments. This difference largely vanished in the final periods. We used logit agent quantal response equilibrium (LAQRE) as a device to grasp boundedly rational behavior and found the following: (1) LAQRE predictions are much closer to subjects’ behavior in the laboratory; (2) LAQRE probabilities and experimental behavior show remarkably similar patterns; and (3) including social preferences in LAQRE does not better explain the experimental data; (4) LAQRE cannot explain the contract offers of some players who seem to choose some focal contract parameters.

A Multi-Disciplinary Approach to Designing Business Management Games

2011 ◽  
pp. 136-150
Author(s):  
Pedro Campos
Keyword(s):  
Computer Games ◽  
Educational Games ◽  
Business Management ◽  
Information Technology Professionals ◽  
Novel Approach ◽  
Management Concepts ◽  
Traditional Teaching Methods ◽  
Management Games ◽  
Rate Of Learning ◽  
The Relationship

Computer games have become an important part of the new digital economy, employing thousands of Information Technology professionals worldwide. Their role as a novel approach to reduce the distance between students and knowledge is also well documented. In this chapter, we will describe a multi-disciplinary approach to designing a particular class of educational games: business management games. We argue that through a better understanding of the relationship between work-domain based decisions and processes, professional game designers can achieve effective results. The design approach was based on intensive collaboration and co-design meetings with business management researchers and professors. The result was a game called “SimCompany”, aimed at teaching children about business management concepts, thus promoting an entrepreneurship culture in classroom settings. “SimCompany” proved effective as a teaching tool about business management concepts, and initial evaluation showed a positive increase in students’ rate of learning, when compared to traditional teaching methods.

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