scholarly journals St. Petersburg paradox: adoption of decisions on the basis of data mining and development of software in the sphere of business analytics

2021 ◽  
Vol 34 (04) ◽  
pp. 1370-1380
Author(s):  
Mikhail Samuilovich Gasparian ◽  
Irina Anatolievna Kiseleva ◽  
Valery Alexandrovich Titov ◽  
Natalia Alekseevna Sadovnikova
Keyword(s):  
Mathematical Model ◽  
Economic Theory ◽  
Marginal Utility ◽  
Mathematical Problem ◽  
Management Theory ◽  
Survey Method ◽  
Business Analytics ◽  
Business Analysis ◽  
Diminishing Marginal Utility ◽  
Petersburg Paradox

This article is devoted to analysis of models of St. Petersburg paradox, as well as development of software in the sphere of business analysis. This work is based on mathematical models using theories of probability and games as well as expert survey method. It is demonstrated that the St. Petersburg paradox is a mathematical problem of probability theory with artificial conditions. The influence of this problem on economical theory is exemplified by such provisions as the principle of diminishing marginal utility, the use of expected utility as criterion of decision adoption in uncertain environment, as well as foundations of microeconomics of insurance and risk management, theory of games and some approaches to financial simulation. Adoption of decisions on the basis of the St. Petersburg paradox is analyzed. Review of main decisions of the St. Petersburg paradox and their influence for economic theory has confirmed that the St. Petersburg paradox as a mathematical problem can be used as mathematical model upon implementation of financial simulation. Comparative analysis of available BI solutions has confirmed that most of them propose all major functions, and significant differences can be revealed in penetration of expanded functions.

scholarly journals Role of the St. Petersburg Paradox in Decision-Making

2018 ◽  
Vol 7 (4.38) ◽  
pp. 186
Author(s):  
Mikhail Samuilovich Gasparian ◽  
Irina Anatolievna Kiseleva ◽  
Dmitry Gennadievich Korneev ◽  
Sergey Arkadyevich Lebedev ◽  
Viktor Arkadyevich Lebedev
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Economic Theory ◽  
Marginal Utility ◽  
Management Game ◽  
Financial Modeling ◽  
Diminishing Marginal Utility ◽  
The Impact ◽  
Petersburg Paradox

The article considers the appearance and modern interpretations of the St. Petersburg paradox. A review of the main solutions of the St. Petersburg paradox and an attempt to define their significance for the economic theory have been made. The impact of this problem on the economic theory can be seen by the example of such provisions as the principle of diminishing marginal utility, the use of expected utility as a criterion for decision-making in the context of uncertainty, as well as the basics of microeconomics of insurance and risk management, game theory, and some approaches to financial modeling. 

scholarly journals The legitimacy of increasing marginal utility in social services: The case of university examinations

2010 ◽  
Vol 55 (186) ◽  
pp. 67-87
Author(s):  
Petar Filipic
Keyword(s):  
Economic Theory ◽  
Social Services ◽  
Utility Theory ◽  
Marginal Utility ◽  
Social Reality ◽  
Goods And Services ◽  
Diminishing Marginal Utility ◽  
The Law

The concept of utility became rightfully recognized in economic theory with the introduction of decreasing marginal utility. However a question that arises is: does an increasing consumption of goods always and without exception lead to diminishing marginal utility? It is quite possible that in some cases marginal utility of goods and services actually increases. If this fact is true, it might additionally strengthen the utility theory and make it applicable in numerous cases of economic and social reality. This paper uses the example of the utility of studying at university (i.e. the utility of university examinations), and tries to add a few arguments in favour of the statement that the law of increasing utility exists.

Nikolay Sieber in the history of prerevolutionary Russian economic thought

2018 ◽  
pp. 95-110
Author(s):  
L. D. Shirokorad
Keyword(s):  
Economic Theory ◽  
Political Economy ◽  
Organic Synthesis ◽  
Marginal Utility ◽  
Economic Thought ◽  
History Of ◽  
Three Stages

This article shows how representatives of various theoretical currents in economics at different times in history interpreted the efforts of Nikolay Sieber in defending and developing Marxian economic theory and assessed his legacy and role in forming the Marxist school in Russian political economy. The article defines three stages in this process: publication of Sieber’s work dedicated to the analysis of the first volume of Marx’s Das Kapital and criticism of it by Russian opponents of Marxian economic theory; assessment of Sieber’s work by the narodniks, “Legal Marxists”, Georgiy Plekhanov, and Vladimir Lenin; the decline in interest in Sieber in light of the growing tendency towards an “organic synthesis” of the theory of marginal utility and the Marxist social viewpoint.

Income or Culture? Examining the Determinants of Subjective Wellbeing in an International Sample

2019 ◽  
Author(s):  
Siddharth Garg
Keyword(s):  
Online Survey ◽  
Subjective Wellbeing ◽  
Regression Coefficient ◽  
Marginal Utility ◽  
Economic Class ◽  
Income Groups ◽  
Significant Difference ◽  
The World ◽  
Diminishing Marginal Utility ◽  
The Relationship

Objective: The aim of this paper was to examine the relationship between income, subjective wellbeing, and culture among people from a higher socio-economic class across the world. Rationale: Ed Diener proposed the law of diminishing marginal utility as an explanation for differences in subjective wellbeing among different income groups across different countries (Diener, Ng, & Tov, Balance in life and declining marginal utility of diverse resources, 2009). Thus, people with higher incomes would experience less subjective wellbeing due to income, and culture should emerge as a significant predictor. Method: Data from this study came from another study (https://siddharthgargblog.wordpress.com/2019/07/14/love-for-money/). I used an online survey to collect data on annual income in US dollars, subjective wellbeing (WHO-5), and country of residence (Indicator of Culture). 96 responses (Indians = 24, Foreigners = 72) were entered in IBM SPSS and a regression analysis was conducted. The raw dataset used in this study can be found at https://doi.org/10.6084/m9.figshare.8869040.v1Results: ANOVA showed a significant difference (p < 0.05) between Indians and foreigners on levels of subjective wellbeing. Linear regression shows the regression coefficient of culture to be significant (Beta = -.254, p = .014) but the regression coefficient of income was not found to be significant. The overall model was found to explain 8.2% of the variance in wellbeing.Conclusion: The sample of this study is too small to make any kind of generalization; it does lend a little bit of support to the idea of diminishing marginal utility of income on subjective wellbeing and provides a rationale for further research.

B. ANALISA KELAYAKAN BISNIS PADA UMKM (Study Kasus Pada Usaha Tempe Murni Ita)

2019 ◽  
Vol 2 (1) ◽  
pp. 10-19
Author(s):  
Agus Jonikar Ndraha ◽  
Avan Joko Prasetyawan ◽  
Ida Kurnia Wati ◽  
Ilmia Cahyasari ◽  
Nafa Alya Shintya ◽  
...  
Keyword(s):  
Production Costs ◽  
Survey Method ◽  
Variable Cost ◽  
Fixed Costs ◽  
Net Income ◽  
Average Income ◽  
Total Cost ◽  
Net Profit ◽  
Business Analysis ◽  
Gross Income

Abstrak Tahun demi tahun, persaingan bisnis tempe di wilayah Surabaya kian ketat. Oleh karena itu diperlukan sebuah studi untuk mengkaji kelayakan bisnis tersebut. Tujuan dari makalah ini adalah Sebagai acuan untuk mengetahui semua biaya produksi, pendapatan kotor dan pendapatan bersih usaha tempe serta kelayakan usaha tempe di Surabaya. Penelitian dilaksanakan di daerah Sukomanunggal dengan menggunakan metode surve. Hasil penelitian menunjukkan bahwa: Rata-rata biaya total sebesar Rp 2.144.590 yang dihasilkan dari penjumlahan biaya tetap rata-rata sebesar Rp 160.590 dengan biaya variabel rata-rata sebesar Rp 1.984.000. Laba bersih rata-rata sekitar Rp 955.410 dari pendapatan rata-rata sebesar Rp 3.100.000 dikurangi dengan semua pengeluaran Rp 2.144.590. Analisis kewajaran usaha adalah dengan menyusun pendapatan dan pengeluaran secara keseluruhan. Rata-rata semua pendapatan Rp 3.100.000 dan semua pengeluaran rata-rata sebesar Rp 2.144.590. Dengan rasio 1,45 usaha tempe murni ITA layak untuk dijalankan.  Kata Kunci : Biaya produksi, Pendapatan kotor, Pendapatan bersih, Kelayakan usaha   Abstract From year to year, Tempe business competition in the Surabaya area is getting tougher. Therefore a study is needed to study the feasibility of the business. The purpose of this paper is as a reference to find out all the production costs, gross income, and net income of tempe businesses and the feasibility of tempe businesses in Surabaya. The study was carried out in the Sukomanunggal area using a survey method. The results showed that: The average total cost of Rp 2,144,590 resulted from the sum of the average fixed costs of Rp 160,590 with an average variable cost of Rp 1,984,000. Net profit averaged around Rp. 955,410 from an average income of Rp. 3,100,000 minus all expenses of Rp. 2,144,590. The reasonableness of business analysis is to compile overall income and expenditure. The average income of all Rp 3,100,000 and all expenses averaged Rp 2,144,590. With a ratio of 1.45, pure ITA tempe business is feasible to run.  Keywords : Production costs, Gross income, Net income, Business feasibility

scholarly journals The Shapiro-Stiglitz Model with Non-constant Marginal Utility

2017 ◽  
Vol 1 (1) ◽  
pp. 36-48
Author(s):  
Joseph S. K. Wu ◽  
Chi Pui Ho
Keyword(s):  
Utility Function ◽  
Unemployment Rate ◽  
Marginal Utility ◽  
Efficiency Wage ◽  
Generalized Model ◽  
Factors Affecting ◽  
Secular Decline ◽  
Diminishing Marginal Utility

Abstract The Shapiro-Stiglitz model plays an important role in the employment theory. Woodford pointed out the theoretic limitation of the linear worker's utility function in that model. He questioned the model's implication of the secular decline in the unemployment rate when such rate was in fact trendless. He proposed to resolve this by allowing diminishing marginal utility of income. In this paper, the Shapiro- Stiglitz model is generalized using a nonlinear utility function implicit in the Stiglitz Efficiency-wage paper, thus linking these two well-known models. The nonlinear utility function in this generalized model not only allows for diminishing marginal utility of income but also allows for the analysis of parameters representing various factors affecting the secular unemployment rate. In particular, we can specify the condition under which the diminishing marginal utility can cause such rate to be trendless.

scholarly journals Business Analytics and Its Role in Managing the Competitiveness of an Enterprise

2020 ◽  
pp. 214-220
Author(s):  
Bohdan Dmitrishin ◽  
◽  
Maksym Boroviy ◽  
Keyword(s):  
Adaptive Systems ◽  
Full Potential ◽  
Business Analytics ◽  
Business Decision ◽  
Advantages And Disadvantages ◽  
Stage Of Development ◽  
Factors Influencing ◽  
Business Analysis ◽  
Enterprise Competitiveness ◽  
Positive Effect

The purpose of the article is to develop the methodological foundations of business analytics as a necessary component in the competitiveness management system of a modern enterprise. The article is devoted to solving the problem of relations business analytics (in particular business decision support systems) and systemic characteristics of enterprise competitiveness management. Substantiation of factors influencing the formation of the competitiveness of an enterprise becomes significant at this stage of development of the national economy. The publication summarizes the tasks, principles and goals of business analytics. The relations between business analytics and enterprise competitiveness is defined and structured. Business analytics aims to simplify the work of the company as much as possible, increasing the profitability of sales and minimizing losses, which will certainly have a positive effect on the competitiveness of an enterprise. It is noted that the qualitative improvement of the range and intellectual potential of an enterprise has a positive effect on the competitiveness of manufactured goods (services), personnel of an enterprise. Factors influencing the competitiveness of an enterprise are established and substantiated. The types of relations between business strategy and business analytics are analyzed. The significance and necessity of conducting business analysis for making managerial decisions are revealed. The tools of a business analyst in a rapidly changing environment are proposed. Ukrainian enterprises are recommended to use not static, but strategically-oriented adaptive systems of competitiveness management, based on the widespread use of business process modeling and business intelligence tools. Further research should be focused on the implementation of modern methods of business analytics in enterprises, taking into account the experience of the most developed countries, conducting a comparative analysis of business analysis tools to reveal their full potential, highlighting the advantages and disadvantages.

scholarly journals The Nature of Risk Preferences: Evidence from Insurance Choices

2013 ◽  
Vol 103 (6) ◽  
pp. 2499-2529 ◽  
Author(s):  
Levon Barseghyan ◽  
Francesca Molinari ◽  
Ted O'Donoghue ◽  
Joshua C Teitelbaum
Keyword(s):  
Loss Aversion ◽  
Structural Model ◽  
Marginal Utility ◽  
Unobserved Heterogeneity ◽  
Risky Choice ◽  
Probability Weighting ◽  
Disappointment Aversion ◽  
Diminishing Marginal Utility ◽  
Standard Risk ◽  
Small Probabilities

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates “standard” risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions—characterized by substantial overweighting of small probabilities and only mild insensitivity to probability changes—play an important role in explaining the aversion to risk manifested in deductible choices. This finding is robust to allowing for observed and unobserved heterogeneity in preferences. We demonstrate that neither Kőszegi-Rabin loss aversion alone nor Gul disappointment aversion alone can explain our estimated probability distortions, signifying a key role for probability weighting. (JEL D14, D81, G22)

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