Estimation Theory in Financial Accounting as It Applies to Valuing Intellectual Property Assets

The abandonment option under various capital budgeting models are discussed in this study to illustrate the notion that present value of cash flows is often improperly estimated in financial models utilizing decision analytics in estimation theory as it applies in financial accounting. In this study, intellectual property rights and other intangible assets which are often not considered in the accounting estimation processes utilized in financial accounting. An investor/analyst often misestimates cash flow resulting in less-than-optimum capital budgeting decisions. This is especially a problem when actions to abandon for salvage and other similar decisions improve when the present value of intangibles and property rights are included in the decision process. This last statement is the goal of this study as well as to present well-founded processes to improve abandonment and similar decisions in capital budgeting decisions. The estimation problem in financial accounting is included in the analysis to accomplish this goal.

Behavioral Decision Making in Normative and Descriptive Views: A Critical Review of Literature

Recent studies on decision analytics frequently refer to the topic of behavioral decision making (BDM), which focuses on behavioral components of decision analytics. This paper provides a critical review of literature for re-examining the relations between BDM and classical decision theories in both normative and descriptive reviews. We attempt to capture several milestones in theoretical models, elaborate on how the normative and descriptive theories blend into each other, thus motivating the mostly prescriptive models in decision analytics and eventually promoting the theoretical progress of BDM—an emerging and interdisciplinary field. We pay particular attention to the decision under uncertainty, including ambiguity aversion and models. Finally, we discuss the research directions for future studies by underpinning the theoretical linkages of BDM with fast-evolving research areas, including loss aversion, reference dependence, inequality aversion, and models of quasi-maximization mistakes. This paper helps to understand various behavioral biases and psychological factors when making decisions, for example, investment decisions. We expect that the results of this research can inspire studies on BDM and provide proposals for mechanisms for the development of D-TEA (decision—theory, experiments, and applications).

Crowdsourced Manufacturing Cyber Platform and Intelligent Cognitive Assistants for Delivery of Manufacturing as a Service: Review of Fundamental Issues and Outlook

Future cyber manufacturing is envisioned to be fulfilled in a crowdsourcing environment that will engage a large population of manufacturer crowds to collaborate with the cyber platform on a shared understanding of the tasks for delivering manufacturing as a service (MaaS). This review paper is motivated towards a symbiosis of crowdsourcing cyber platform technologies to enhance intelligent decision support to manufacturing planning for achieving MaaS operational goals. The paper reviews the fundamental issues of MaaS through crowdsourcing from a model-based systems engineering perspective that is in line with a systematic framework of platform-driven MaaS. Also discussed is the outlook of analytic and model-based approach for crowdsourced manufacturing in order to enable new cyber manufacturing capabilities that represent a significant transformation of the manufacturing sector. The vision is to facilitate transition from the current practice of focusing on automation and manufacturing informatics within individual enterprise to open manufacturing crowds throughout the cloud platform to fulfill MaaS. The cyber platform and intelligent cognitive assistants enhance MaaS fulfilment by adopting computational modeling and decision analytics to exploit the implicit design and manufacturing knowledge that is incorporated in the library of previously executed manufacturing tasks, which in turn facilitates generation of manufacturing process plans by parametric adjustment of process plans for similar tasks.