scholarly journals Understanding Managers’ Trade-Offs Between Exploration and Exploitation

2021 ◽  
Author(s):  
Alina Ferecatu ◽  
Arnaud De Bruyn
Keyword(s):  
Learning Model ◽  
Decision Makers ◽  
Exploration And Exploitation ◽  
Trade Offs ◽  
Exploration Exploitation

This paper develops a learning model to describe decision makers' exploration/exploitation trade-offs and their link to psychometric traits.

scholarly journals Organizational Ambidexterity, Exploration, Exploitation and Firms Innovation Performance

Organizacija ◽  
2015 ◽  
Vol 48 (2) ◽  
pp. 112-119 ◽  
Author(s):  
Mladenka Popadić ◽  
Matej Černe ◽  
Ines Milohnić
Keyword(s):  
Innovation Performance ◽  
Organizational Level ◽  
Organizational Ambidexterity ◽  
Exploration And Exploitation ◽  
Community Innovation Survey ◽  
Trade Offs ◽  
Single Construct ◽  
Independent Effects ◽  
Exploration Exploitation ◽  
The Relationship

Abstract Background and Purpose: The construct of organizational ambidexterity (OA) has attracted the growing attention in management research. Previous empirical research has investigated the effect of organisational ambidexterity on performance from various perspectives. This study aims to resolve the contradictory previous research findings on the relationship between organisational ambidexterity and innovation performance. We unpack this construct with combined dimension of ambidexterity, which relates to a combination of high levels of both exploration and exploitation (introduction of products or services that were new to the market and new to the firm). Methodology: We frame our ambidexterity hypothesis in terms of firm’s innovation orientation. The hypothesis is tested by using Community Innovation Survey (CIS) 2006 micro data at the organizational level in twelve countries. To operationalize an ambidexterity and firms innovation outcome, we used self-reported measures of innovativeness. Results: To test our hypothesis, we developed a set of models and tested them with multiple hierarchical linear regression analyses. The results indicate that exploration and exploitation are positively related to firm’s innovation performances which supports our assumption that both are complementary. Furthermore, we find that above and over their independent effects, through combining them into a single construct of organizational ambidexterity, this variable remains negatively and significantly related to innovation performance. Conclusion: These results provides the managers with an idea of when managing trade-offs between exploration and exploitation would be more favorable versus detrimental. For firms with lower organizational ambidexterity, the relationship between exploration-exploitation and the firm’s innovation performance is a more positive one.

The Effects of Decision Time on Perceptions of Decisions and Decision Makers in (Moral) Trade-Off Scenarios

2019 ◽  
Author(s):  
Anna Katharina Spälti ◽  
Mark John Brandt ◽  
Marcel Zeelenberg
Keyword(s):  
Decision Process ◽  
Decision Time ◽  
Decision Makers ◽  
Process Information ◽  
Total N ◽  
Trade Off ◽  
Financial Gain ◽  
Trade Offs ◽  
Sacred Values ◽  
Moral Context

People often have to make trade-offs. We study three types of trade-offs: 1) "secular trade-offs" where no moral or sacred values are at stake, 2) "taboo trade-offs" where sacred values are pitted against financial gain, and 3) "tragic trade-offs" where sacred values are pitted against other sacred values. Previous research (Critcher et al., 2011; Tetlock et al., 2000) demonstrated that tragic and taboo trade-offs are not only evaluated by their outcomes, but are also evaluated based on the time it took to make the choice. We investigate two outstanding questions: 1) whether the effect of decision time differs for evaluations of decisions compared to decision makers and 2) whether moral contexts are unique in their ability to influence character evaluations through decision process information. In two experiments (total N = 1434) we find that decision time affects character evaluations, but not evaluations of the decision itself. There were no significant differences between tragic trade-offs and secular trade-offs, suggesting that the decisions structure may be more important in evaluations than moral context. Additionally, the magnitude of the effect of decision time shows us that decision time, may be of less practical use than expected. We thus urge, to take a closer examination of the processes underlying decision time and its perception.

scholarly journals From Bitcoin to Central Bank Digital Currencies: Making Sense of the Digital Money Revolution

2021 ◽  
Vol 13 (7) ◽  
pp. 165
Author(s):  
Paulo Rupino Cunha ◽  
Paulo Melo ◽  
Helder Sebastião
Keyword(s):  
Central Bank ◽  
Practical Implication ◽  
Grey Literature ◽  
Central Banks ◽  
Decision Makers ◽  
Making Sense ◽  
Extensive Search ◽  
Trade Offs ◽  
Digital Money ◽  
Open Issues

We analyze the path from cryptocurrencies to official Central Bank Digital Currencies (CBDCs), to shed some light on the ultimate dematerialization of money. To that end, we made an extensive search that resulted in a review of more than 100 academic and grey literature references, including official positions from central banks. We present and discuss the characteristics of the different CBDC variants being considered—namely, wholesale, retail, and, for the latter, the account-based, and token-based—as well as ongoing pilots, scenarios of interoperability, and open issues. Our contribution enables decision-makers and society at large to understand the potential advantages and risks of introducing CBDCs, and how these vary according to many technical and economic design choices. The practical implication is that a debate becomes possible about the trade-offs that the stakeholders are willing to accept.

scholarly journals Using Deliberative Democracy for Better Urban Decision-Making through Integrative Thinking

Urban Science ◽  
2020 ◽  
Vol 5 (1) ◽  
pp. 3
Author(s):  
Janette Hartz-Karp ◽  
Dora Marinova
Keyword(s):  
Decision Making ◽  
Case Studies ◽  
Deliberative Democracy ◽  
Decision Makers ◽  
Capital City ◽  
City Region ◽  
Multiple Sources ◽  
Trade Offs ◽  
Urban Issues ◽  
Sustainability Challenges

This article expands the evidence about integrative thinking by analyzing two case studies that applied the collaborative decision-making method of deliberative democracy which encourages representative, deliberative and influential public participation. The four-year case studies took place in Western Australia, (1) in the capital city Perth and surrounds, and (2) in the city-region of Greater Geraldton. Both aimed at resolving complex and wicked urban sustainability challenges as they arose. The analysis suggests that a new way of thinking, namely integrative thinking, emerged during the deliberations to produce operative outcomes for decision-makers. Building on theory and research demonstrating that deliberative designs lead to improved reasoning about complex issues, the two case studies show that through discourse based on deliberative norms, participants developed different mindsets, remaining open-minded, intuitive and representative of ordinary people’s basic common sense. This spontaneous appearance of integrative thinking enabled sound decision-making about complex and wicked sustainability-related urban issues. In both case studies, the participants exhibited all characteristics of integrative thinking to produce outcomes for decision-makers: salience—grasping the problems’ multiple aspects; causality—identifying multiple sources of impacts; sequencing—keeping the whole in view while focusing on specific aspects; and resolution—discovering novel ways that avoided bad choice trade-offs.

scholarly journals Systematic Exploration and Uncertainty Dominate Young Children’s Choices

2019 ◽  
Author(s):  
Nathaniel J. Blanco ◽  
Vladimir Sloutsky
Keyword(s):  
Decision Making ◽  
Young Children ◽  
Cognitive Control ◽  
Exploration And Exploitation ◽  
Top Down ◽  
Reward Seeking ◽  
Systematic Fashion ◽  
Systematic Exploration ◽  
Competing Demands ◽  
Exploration Exploitation

Organisms need to constantly balance the competing demands of gathering information and using previously acquired information to obtain rewarding outcomes (i.e., the “exploration- exploitation” dilemma). Exploration is critical to obtain information to discover how the world works, which should be particularly important for young children. While studies have shown that young children explore in response to surprising events, little is known about how they balance exploration and exploitation across multiple decisions or about how this process changes with development. In this study we compare decision-making patterns of children and adults and evaluate the relative influences of reward-seeking, random exploration, and systematic switching (which approximates uncertainty-directed exploration). In a second experiment we directly test the effect of uncertainty on children’s choices. Influential models of decision-making generally describe systematic exploration as a computationally refined capacity that relies on top-down cognitive control. We demonstrate that (1) systematic patterns dominate young children’s behavior (facilitating exploration), despite protracted development of cognitive control, and (2) that uncertainty plays a major, but complicated, role in determining children’s choices. We conclude that while young children’s immature top-down control should hinder adult-like systematic exploration, other mechanisms may pick up the slack, facilitating broad information gathering in a systematic fashion to build a foundation of knowledge for use later in life.

scholarly journals Comparing interactive evolutionary multiobjective optimization methods with an artificial decision maker

2021 ◽  
Author(s):  
Bekir Afsar ◽  
Ana B. Ruiz ◽  
Kaisa Miettinen
Keyword(s):  
Multiobjective Optimization ◽  
Decision Maker ◽  
Optimization Problems ◽  
Optimization Methods ◽  
Decision Makers ◽  
Interactive Methods ◽  
Preference Information ◽  
Evolutionary Methods ◽  
Solution Processes ◽  
Trade Offs

AbstractSolving multiobjective optimization problems with interactive methods enables a decision maker with domain expertise to direct the search for the most preferred trade-offs with preference information and learn about the problem. There are different interactive methods, and it is important to compare them and find the best-suited one for solving the problem in question. Comparisons with real decision makers are expensive, and artificial decision makers (ADMs) have been proposed to simulate humans in basic testing before involving real decision makers. Existing ADMs only consider one type of preference information. In this paper, we propose ADM-II, which is tailored to assess several interactive evolutionary methods and is able to handle different types of preference information. We consider two phases of interactive solution processes, i.e., learning and decision phases separately, so that the proposed ADM-II generates preference information in different ways in each of them to reflect the nature of the phases. We demonstrate how ADM-II can be applied with different methods and problems. We also propose an indicator to assess and compare the performance of interactive evolutionary methods.

Water-Energy-Food Nexus Review for Biofuels Assessment

2021 ◽  
Vol 11 (1) ◽  
pp. 193-205
Author(s):  
Abass A. Gazal ◽  
Napat Jakrawatana ◽  
Thapat Silalertruksa ◽  
Shabbir H. Gheewala
Keyword(s):  
Resource Availability ◽  
First Generation ◽  
Decision Makers ◽  
Assessment Methodology ◽  
Life Cycle Assessment Methodology ◽  
New Approach ◽  
Future Studies ◽  
Human Needs ◽  
Trade Offs ◽  
Basic Human Needs

The appropriate use of limited natural resources for generating basic human needs such as energy, food, and water, is essential to help the society function efficiently. Hence, a new approach called nexus is being considered to resolve the effects of intrinsic trade-offs between the essential needs. A review of different methods and frameworks of the water-energy-food nexus was done in this article to give a detailed repository of information on existing approaches and advocate the development of a more holistic quantitative nexus method. Assessing biofuels under the water-energy-food nexus perspective, this review addresses the sustainability of bioenergy production. The results show the countries that can sustainably produce first-generation biofuels. Only a few methods have varied interdisciplinary procedures to analyse the nexus, and more analytical software and data on resource availability/use are needed to address trade-offs between these interacting resource sectors constituting the nexus. Also, “land” is suggested as an additional sector to consider in future studies using both the nexus index and life cycle assessment methodology. The review reveals that to tackle composite challenges related to resource management, cross-disciplinary methods are essential to integrate environmental, socio-political facets of water, energy, and food; employ collaborative frameworks; and seek the engagement of decision-makers.

OP58 Testing Of A Multiple Criteria Decision Analysis Value Framework With Decision Makers Across Europe

2017 ◽  
Vol 33 (S1) ◽  
pp. 25-26
Author(s):  
Aris Angelis ◽  
Mark Linch ◽  
Gilberto Montibeller ◽  
Teresa Molina-Lopez ◽  
Anna Zawada ◽  
...  
Keyword(s):  
Decision Analysis ◽  
Relative Weight ◽  
Value Theory ◽  
Multiple Criteria ◽  
Decision Makers ◽  
Multiple Criteria Decision Analysis ◽  
Model Assessment ◽  
Value Assessment ◽  
Therapeutic Impact ◽  
Trade Offs

INTRODUCTION:We test in practice a Multiple Criteria Decision Analysis (MCDA) framework for the value assessment of a set of therapeutic options for the indication of hormone relapsed metastatic prostate cancer (mPC) through a series of simulation exercises with the participation of decision makers from different Health Technology Assessment (HTA)/insurance agencies across Europe, including TLV (Sweden), AETSA (Andalusia-Spain), INAMI-RIZIV (Belgium) and AOTMiT (Poland). The drugs evaluated were abiraterone, cabazitaxel and enzalutamide.METHODS:Using a multi-attribute value theory framework, past research outcomes and literature findings, an mPC-specific value tree was constructed incorporating relevant concerns as criteria. By adopting the MACBETH approach the different drugs were scored against the criteria through the development of value functions, relative weights were assigned to the criteria using a swing weighting technique, scores and weights were combined using an additive aggregation technique, and sensitivity analysis of results was conducted. All stages were informed through the participation of a small group of experts from each HTA/insurance agency at a series of decision conferences taking place in each country.RESULTS:Value parameters considered spanned the dimensions of therapeutic impact, safety profile, innovation level and socioeconomic impact. Overall weighted preference value scores were produced reflecting the performance of the treatments against the criteria while considering their relative importance. Order of treatments’ rankings was identical across all agencies, with enzalutamide scoring highest and cabazitaxel lowest. Therapeutic impact criteria always produced the greatest relative weight. Hypothetical priority setting decisions were made based on “value-for-money” grounds through the use of “cost per unit of value” metrics by incorporating purchasing costs.CONCLUSIONS:The MCDA framework tested possesses a number of characteristics that could facilitate decision making, including the systematic and explicit incorporation of value trade-offs as part of model assessment and the transparency throughout all its stages. Therefore, it has the prospects to act as a practical evaluation tool for value assessment and communication during the HTA process.

Disasters and Development: Part 3: Assessing Trade-offs in Investing in Vulnerability Reduction

2005 ◽  
Vol 20 (1) ◽  
pp. 66-69 ◽  
Author(s):  
Rob S. Stephenson ◽  
Charles DuFrane
Keyword(s):  
Decision Makers ◽  
Disaster Mitigation ◽  
Costs And Benefits ◽  
Present Value ◽  
Catastrophic Event ◽  
Vulnerability Reduction ◽  
Factors Influencing ◽  
Trade Offs ◽  
Economic Analyses ◽  
Development Alternatives

AbstractThis lesson describes how a government decides whether and how much it should spend on vulnerability reduction. There are techniques and methods by which decision-makers compare development alternatives. The differences between the risk that a potentially catastrophic event will occur and uncertainty are described, with uncertainty providing greater difficulty in economic analyses. There is a range of methods for identifying the complex mix of competing costs and benefits associated with any restructuring of investment priorities to accomplish disaster mitigation. The possibilities are described in terms of the opportunity costs and present value. Impact and consequent losses include: (1) direct monetary effects; (2) indirect monetary effects; (3) direct, non-monetary effects; (4) indirect, non-monetary effects; and (5) loss of non-renewable natural resources. The difficulties in assigning values to these effects are described, as well as the means of judging the costeffectiveness of such interventions. An advantage of screening projects using a framework of analytical methods is that it can assist in focusing on a variety of possible outcomes and make the factors influencing these outcomes quite explicit.

scholarly journals Modelling Flexibility and Qualification Ability to Assess Electric Propulsion Architectures for Satellite Megaconstellations

Aerospace ◽  
2020 ◽  
Vol 7 (12) ◽  
pp. 176
Author(s):  
Massimo Panarotto ◽  
Olivia Borgue ◽  
Ola Isaksson
Keyword(s):  
Case Studies ◽  
Electric Propulsion ◽  
Decision Makers ◽  
Market Behavior ◽  
Production Rates ◽  
Program Managers ◽  
Engineering Teams ◽  
Trade Offs ◽  
The Impact ◽  
The Way

The higher satellite production rates expected in new megaconstellation scenarios involve radical changes in the way design trade-offs need to be considered by electric propulsion companies. In relative comparison, flexibility and qualification ability will have a higher impact in megaconstellations compared to traditional businesses. For these reasons, this paper proposes a methodology for assessing flexible propulsion architectures by taking into account variations in market behavior and qualification activities. Through the methodology, flexibility and qualification ability can be traded against traditional engineering attributes (such as functional performances) in a quantitative way. The use of the methodology is illustrated through an industrial case related to the study of xenon vs. krypton architectures for megaconstellation businesses. This paper provides insights on how to apply the methodology in other case studies, in order to enable engineering teams to present and communicate the impact of alternative architectural concepts to program managers and decision-makers.

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