Decision Theory and Allocating Decision Making in the Firm

2021 ◽  
pp. 209-226
Author(s):  
Julian Velasco
Keyword(s):  
Decision Making ◽  
Decision Theory ◽  
Decision Maker ◽  
Subject Matter ◽  
Decision Makers ◽  
Basic Principles ◽  
Business Organisation ◽  
The Subject ◽  
The Law ◽  
Different Levels

Sometimes it is possible to deal productively with the subject matter of choosing and making decisions without actually settling upon any particular theory of choice. This is the case in the law of business organisations, which does not settle upon a theory of choice because it does not consider itself the ultimate decision maker. Rather, the law develops rules to allocate decision-making authority among the various parties. Utilising only a few basic principles of decision theory, the law of business organisation creates a structure for allocating decision-making responsibility on many different levels. However, it leaves the ultimate decision makers free not only to make substantive decisions for themselves but also to select from among the various theories of choice for doing so.

scholarly journals Epistemic Uncertainty Analysis: An Approach Using Expert Judgment and Evidential Credibility

2012 ◽  
Vol 2012 ◽  
pp. 1-8 ◽  
Author(s):  
Patrick Hester
Keyword(s):  
Decision Making ◽  
Probability Theory ◽  
Air Force ◽  
Subject Matter ◽  
Epistemic Uncertainty ◽  
Expert Judgment ◽  
Decision Makers ◽  
Expert Analysis ◽  
Physical Attributes ◽  
The Subject

When dealing with complex systems, all decision making occurs under some level of uncertainty. This is due to the physical attributes of the system being analyzed, the environment in which the system operates, and the individuals which operate the system. Techniques for decision making that rely on traditional probability theory have been extensively pursued to incorporate these inherent aleatory uncertainties. However, complex problems also typically include epistemic uncertainties that result from lack of knowledge. These problems are fundamentally different and cannot be addressed in the same fashion. In these instances, decision makers typically use subject matter expert judgment to assist in the analysis of uncertainty. The difficulty with expert analysis, however, is in assessing the accuracy of the expert's input. The credibility of different information can vary widely depending on the expert’s familiarity with the subject matter and their intentional (i.e., a preference for one alternative over another) and unintentional biases (heuristics, anchoring, etc.). This paper proposes the metric of evidential credibility to deal with this issue. The proposed approach is ultimately demonstrated on an example problem concerned with the estimation of aircraft maintenance times for the Turkish Air Force.

Decision and game theory

2018 ◽  
Author(s):  
Cristina Bicchieri
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Decision Theory ◽  
Subject Matter ◽  
Individual Decision Making ◽  
Conflict And Cooperation ◽  
Intentional Agent ◽  
The Subject ◽  
The Right ◽  
Subject Making

Decision theory studies individual decision-making in situations in which an individual’s choice neither affects nor is affected by other individuals’ choices; while game theory studies decision-making in situations where individuals’ choices do affect each other. Decision theory asks questions like: what does it mean to choose rationally? How should we make choices when the consequences of our actions are uncertain? Buying insurance and deciding which job to take are examples of the kind of decisions studied by this discipline. Game theory instead applies to all decisions that have a strategic component. The choices of an oligopolist, voting strategies, military tactical problems, deterrence, but also common phenomena such as threatening, promising, conflict and cooperation are its subject matter. In a strategic situation, the goal is not just to choose rationally, but to choose in such a way that a mutual solution is achieved, so that choices ‘coordinate’ in the right way. The formal methods developed by game theory do not require that the subject making a choice be an intentional agent: coordinated interaction between animals or computers can be successfully modelled as well.

The role of agency in project initiation decisions

2014 ◽  
Vol 7 (3) ◽  
pp. 518-535 ◽  
Author(s):  
Mark Mullaly
Keyword(s):  
Decision Making ◽  
Decision Rules ◽  
Personal Characteristics ◽  
Decision Makers ◽  
Organizational Dynamics ◽  
Substantive Theory ◽  
Content Type ◽  
The Subject ◽  
Board Level

Purpose – The purpose of this paper is to explore the role of decision rules and agency in supporting project initiation decisions, and the influences of agency on decision-making effectiveness. Design/methodology/approach – The study this paper is based upon used grounded theory methodology, and sought to understand the influences of individual decision makers on project initiation decisions within organizations. Data collection involved 28 participants who were involved in project initiation decisions within their organizations, who discussed the process of project initiation in their organization and their role within that process. Findings – The study demonstrates that the overall effectiveness of project initiation decisions is a product of agency, process effectiveness or rule effectiveness. The employment of agency can have a direct influence on decision-making effectiveness, it can compensate for organizational inadequacies of a process or political nature, and it can be constrained in the evidence of formal and effective organizational practices. Research limitations/implications – While agency was recognized by all participants, there are clearly circumstances where actors perceive the ability to exercise agency to be externally constrained. The study is exploratory, contributing to the development of substantive theory. Theory testing as well as a more in-depth investigation of the underlying drivers of agency would be valuable. Practical implications – The study provides executives and individuals supporting the initiation of projects with insights on how to effectively influence the effectiveness of project initiation decisions, and the degree to which personal characteristics influence organizational dynamics. Originality/value – Most discussions of agency has been framed the subject as an executive- or board-level phenomenon. The current study demonstrates that agency is in fact being perceived and operationalized at all levels. Those demonstrating agency in the majority of instances in this study do so in exercising stewardship behaviours. This has important implications for how agency is perceived by executives, and by how agency is exercised by actors at all levels of the organization.

scholarly journals Novel Parameterized Distance Measures on Hesitant Fuzzy Sets with Credibility Degree and Their Application in Decision-Making

Symmetry ◽  
2018 ◽  
Vol 10 (11) ◽  
pp. 557 ◽  
Author(s):  
Jiaru Li ◽  
Fangwei Zhang ◽  
Qiang Li ◽  
Jing Sun ◽  
Janney Yee ◽  
...  
Keyword(s):  
Decision Making ◽  
Fuzzy Sets ◽  
Cardinal Number ◽  
Decision Makers ◽  
Distance Measures ◽  
Hesitant Fuzzy Set ◽  
Hesitant Fuzzy Sets ◽  
The Subject ◽  
The Relationship

The subject of this study is to explore the role of cardinality of hesitant fuzzy element (HFE) in distance measures on hesitant fuzzy sets (HFSs). Firstly, three parameters, i.e., credibility factor, conservative factor, and a risk factor are introduced, thereafter, a series of novel distance measures on HFSs are proposed using these three parameters. These newly proposed distance measures handle the relationship between the cardinal number and the element values of hesitant fuzzy set well, and are suitable to combine subjective and objective decision-making information. When using these functions, decision makers with different risk preferences are allowed to give different values for these three parameters. In particular, this study transfers the hesitance degree index to a credibility of the values in HFEs, which is consistent with people’s intuition. Finally, the practicability of the newly proposed distance measures is verified by two examples.

Letter to the Editor

2002 ◽  
Vol 17 (4) ◽  
pp. 192-192
Author(s):  
Ian Winspur
Keyword(s):  
Subject Matter ◽  
Performing Arts ◽  
Scientific Evidence ◽  
Performing Arts Medicine ◽  
Letter To The Editor ◽  
The World ◽  
The Subject ◽  
The Law

I enjoyed Alice Brandfonbrener’s editorial “But I Didn’t Ask to Be a Lawyer” in the June 2002 issue of MPPA [MPPA 2002;17(2):57]. I understand and sympathize with her. Many physicians who, like her, are involved in these cases for altruistic reasons rather than pure commercial—-and I believe that this is more common in the world of performing arts medicine—-must find themselves in the same predicament. However, in the words of an eminent English lawyer, who qualified and practiced as a gynecologist before turning to the law, when considering medical and scientific evidence (or in many cases, including performers, non-scientific evidence!): “However scientific the subject matter of the claim and however recondite the evidence and the argument, the legal definitions must apply in a Court of Law; the problem for the lawyer is in making the scientist understand a totally different concept of proof required by the court.” Therefore physicians involved, whether altruistic or not, must understand the basis of these claims.

Does the Name of a Case Matter?

2021 ◽  
Vol 20 (3) ◽  
pp. 469-489
Author(s):  
Haris Jamil
Keyword(s):  
International Law ◽  
Subject Matter ◽  
Fishing Vessel ◽  
International Commerce ◽  
Arbitral Award ◽  
The Subject ◽  
The Law ◽  
A Company

Abstract The arbitral award in The “Enrica Lexie” Incident (Italy v. India) brings to the fore the issue of assigning a name to a case. To contextualise India’s contention regarding the name, The “Enrica Lexie” Incident, in this article, I outline the law and practice regarding assigning names to cases by different international judicial bodies (ICJ, ITLOS, WTO and PCA). Examining India’s objection to the name, I argue that the name of the case does not capture the subject matter of the dispute accurately and emanates from the mainstream view of international law. The name prioritises an Italian flagged vessel, owned by a company engaged in international commerce and navigating under the protection of the Italian navy, over a fishing vessel owned by private individuals. The name reinforces a state-centric view of international law in which the victims of the incident do not picture.

Material Selection Using a Novel Multiple Attribute Decision Making Method

2012 ◽  
pp. 252-266
Author(s):  
R. V. Rao ◽  
B. K. Patel
Keyword(s):  
Decision Making ◽  
Fuzzy Logic ◽  
Decision Maker ◽  
Design Process ◽  
Material Selection ◽  
Multiple Attribute Decision Making ◽  
Decision Makers ◽  
Selection Problem ◽  
Multiple Attribute ◽  
Selection Of

Selection of a most appropriate material is a very important task in design process of every product. There is a need for simple, systematic, and logical methods or mathematical tools to guide decision makers in considering a number of selection attributes and their interrelations and in making right decisions. This paper proposes a novel multiple attribute decision making (MADM) method for solving the material selection problem. The method considers the objective weights of importance of the attributes as well as the subjective preferences of the decision maker to decide the integrated weights of importance of the attributes. Furthermore, the method uses fuzzy logic to convert the qualitative attributes into the quantitative attributes. Two examples are presented to illustrate the potential of the proposed method.

Institutional Structures

2021 ◽  
pp. 32-64
Author(s):  
Paul Daly
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Judicial Review ◽  
Decision Makers ◽  
Administrative Action ◽  
Institutional Structures ◽  
General Aspects ◽  
Individual Self ◽  
Personal Interests ◽  
Or History

This chapter is concerned with the structure of administrative decision-making institutions. Two general aspects of this important topic are particularly relevant to the law of judicial review of administrative action. First, the no-bias principle ensures that decision-making is impartial, by preventing decision-makers from acting where their personal interests, conduct or history could conceivably raise a concern about their ability to make a dispassionate decision on the merits. Second, the principle that a decision-maker must retain their discretion prevents decision-makers from delegating their powers (subject to an exception in the case of government ministers) and limits the scope for the development of policies about how discretionary powers will be exercised in the future. These principles can be understood as being structured by the values of individual self-realisation, good administration, electoral legitimacy and decisional autonomy.

Decision Making in Chains and Networks of Contracts

2021 ◽  
pp. 283-308
Author(s):  
Stefan Grundmann
Keyword(s):  
Decision Making ◽  
Decision Theory ◽  
The Other ◽  
Broad Perspective ◽  
Mutual Knowledge ◽  
Trust And Reciprocity ◽  
Future Events ◽  
The Law

Networks of contracts serve mainly as a long-term form of organisation, both features being typically combined. This combination—the so-called organisational contract—is seen as a hybrid between market and firm. There are different explanations for its existence and two are particularly prominent. Williamson sees them as a governance device to cope with the problem of uncertainty of future events, namely in situations where one party has invested in a particular relationship more than the other and therefore is ‘more dependent’ on its continuance. Conversely, Powell sees them as a scenario where neither command nor anonymous exchange dominate, but mutual (often personalised) trust and reciprocity based on strong mutual knowledge of the partners are marked. These two explanations imply how fascinating the organisational contract may be for decision theory and the law. This chapter addresses the phenotype of (long-term) networks of contacts and sees a large variety of them ranging from rather standardised to highly tailor-made arrangements, which implies a heterogeneous basis for decision-making theories and their application. With respect to decision-making theories that are considered in the second section, the chapter takes a broad perspective. While it may be attractive to apply mainly one decision theory to the phenomenon, the chapter asks which decision theories might have particular explanatory value. Thus, a broader survey on a multifaceted compound of theories might be particularly suitable for the heterogeneous aspects of the phenomenon. The chapter also addresses the question of which repercussions the discussed decision theories might have in law.

8. Patent Protection and Exploitation

2019 ◽  
pp. 178-198
Author(s):  
Justine Pila ◽  
Paul L.C. Torremans
Keyword(s):  
Subject Matter ◽  
Patent Protection ◽  
European Patent ◽  
Central Importance ◽  
The Public ◽  
The Third ◽  
The Subject ◽  
The Law ◽  
Patent Grant

Once a European patent has been granted the nature and scope of the protection it confers must be determined. In considering such protection this chapter focuses on four issues of central importance to that end. The first is the effects of a patent, namely, the territories in and term for which it is valid. The second is the object of protection, namely, the subject matter that the public is excluded from using during the term of its protection. The third is the nature of protection, namely, the uses of the subject matter from which the public is excluded. And the fourth is the limitations to protection, namely, the uses of an invention that the law permits notwithstanding its protection by patent grant.

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