A framework for dynamic multiple-criteria decision making

The classic multiple-criteria decision making (MCDM) model assumes that, when taking a decision, the decision maker has defined a fixed set of criteria and is presented with a clear picture of all available alternatives. The task then reduces to computing the score of each alternative, thus producing a ranking, and choosing the one that maximizes this value.However, most real-world decisions take place in a dynamic environment, where the final decision is only taken at the end of some exploratory process. Exploration of the problem is often beneficial, in that it may unveil previously unconsidered alternatives or criteria, as well as render some of them unnecessary.In this paper we introduce a flexible framework for dynamic MCDM, based on the classic model, that can be applied to any dynamic decision process and which is illustrated by means of a small helicopter landing example. In addition, we outline a number of possible applications in very diverse fields, to highlight its versatility.     

Combination of sources of evidence with different discounting factors based on a new dissimilarity measure

The sources of evidence may have different reliability and importance in real applications for decision making. The estimation of the discounting (weighting) factors when the prior knowledge is unknown have been regularly studied until recently. In the past, the determination of the weighting factors focused only on reliability discounting rule and it was mainly dependent on the dissimilarity measure between basic belief assignments (bba's) represented by an evidential distance. Nevertheless, it is very difficult to characterize efficiently the dissimilarity only through an evidential distance. Thus, both a distance and a conflict coefficient based on probabilistic transformations BetP are proposed to characterize the dissimilarity. The distance represents the difference between bba's, whereas the conflict coefficient reveals the divergence degree of the hypotheses that two belief functions strongly support. These two aspects of dissimilarity are complementary in a certain sense, and their fusion is used as the dissimilarity measure. Then, a new estimation method of weighting factors is presented by using the proposed dissimilarity measure. In the evaluation of weight of a source, both its dissimilarity with other sources and their weighting factors are considered. The weighting factors can be applied in the both importance and reliability discounting rules, but the selection of the adapted discounting rule should depend on the actual application. Simple numerical examples are given to illustrate the interest of the proposed approach.     

Quickly locating efficient, equitable deals in automated negotiations under two-sided information uncertainty

This paper develops an automated negotiation procedure inclusive of mechanism design and agent design for bilateral multi-issue negotiations under two-sided information uncertainty. The proposed negotiation mechanism comprises a protocol called MUP (Monotonic Utility-granting Protocol) and a matching strategy called WYDIWYG (What You Display Influences What You Get). The proposed preference elicitation procedure makes the agents faithful surrogates of the user they represent while the proposed Frontier Tracking Proposal Construction Algorithm (FTPCA) makes them learn the opponent's flexibility in negotiation and respond appropriately. The mechanism design and the agent design together help in locating efficient and equitable deals quickly. The efficiency, stability, simplicity, distribution symmetry and incentive compatibility of the proposed procedure are demonstrated through negotiation simulation experiments.     

Cloud computing — The business perspective

The evolution of cloud computing over the past few years is potentially one of the major advances in the history of computing. However, if cloud computing is to achieve its potential, there needs to be a clear understanding of the various issues involved, both from the perspectives of the providers and the consumers of the technology. While a lot of research is currently taking place in the technology itself, there is an equally urgent need for understanding the business-related issues surrounding cloud computing. In this article, we identify the strengths, weaknesses, opportunities and threats for the cloud computing industry. We then identify the various issues that will affect the different stakeholders of cloud computing. We also issue a set of recommendations for the practitioners who will provide and manage this technology. For IS researchers, we outline the different areas of research that need attention so that we are in a position to advice the industry in the years to come. Finally, we outline some of the key issues facing governmental agencies who, due to the unique nature of the technology, will have to become intimately involved in the regulation of cloud computing.     

Impacts of essential elements of management on IT application maturity — A perspective from firms in China

This paper explores the impacts of essential elements of management on IT application maturity (ITAM). A game theoretical model is established to show that a firm's IT application maturity should match with its essential elements of management. In order to further validate the analytical result, a data set with 137 firms was collected via a survey instrument. Using reliability and factor analysis on the dataset, a four-dimension measurement construct of IT application maturity is proposed together with a three-dimension measurement construct of essential elements of management. Empirical analysis is then conducted to address research questions on the impacts of essential elements of management on IT application maturity. It is found that while a firm's strategic cooperation capability has no significant effect on IT application maturity, its internal coordination capability positively influences all four dimensions of IT application maturity. For the firm's execution capability, although it shows no significant effect on the overall IT application maturity, it does positively affect the technology and man-machine synergy dimensions of IT application maturity. The findings of this study offer practical guidance for organizations to better align their IT application maturity with essential elements of management.     

The adoption of mobile healthcare by hospital's professionals: An integrative perspective

The adoption rate of mobile healthcare is relatively low in the hospital. In practice, a study of how healthcare professionals adopt mobile services to support their work is imperative. An integration of TAM and TPB, concerning both technological and organizational aspects, is important for understanding the adoption of mobile healthcare. However, mobile healthcare is a wireless device which is often used in a voluntary motive. Service provisions for pervasive and timely usage and individual psychological states are critical in determining its use. Accordingly, perceived service availability (PSA) and personal innovativeness in IT (PIIT) may be the important drivers to be included in TAM and TPB. This study thus proposed such a research framework from a broader and integrative perspective. The empirical examination showed high predictive power for adoption intention and the influential role of these important variables.     

Diffusion dynamics of open source software: An agent-based computational economics (ACE) approach

The rising popularity of open source software (OSS) calls for a better understanding of the drivers of its adoption and diffusion. In this research, we propose an integrated framework that simultaneously investigates a broad range of social and economic factors on the diffusion dynamics of OSS using an Agent Based Computational Economics (ACE) approach. We find that interoperability costs, variability of OSS support costs, and duration of PS upgrade cycle are major determinants of OSS diffusion. Furthermore, there are interaction effects between network topology, network density and interoperability costs, which strongly influence the diffusion dynamics of OSS. The proposed model can be used as a building block to further investigate complex competitive dynamics in software markets.     

Average-case analysis of VCG with approximate resource allocation algorithms

The Vickrey-Clarke-Groves (VCG) mechanism offers a general technique for resource allocation with payments, ensuring allocative efficiency while eliciting truthful information about preferences. However, VCG relies on exact computation of an optimal allocation of resources, a problem which is often computationally intractable, and VCG that uses an approximate allocation algorithm no longer guarantees truthful revelation of preferences. We present a series of results for computing or approximating an upper bound on agent incentives to misreport their preferences. Our first key result is an incentive bound that uses information about average (not worst-case) performance of an algorithm, which we illustrate using combinatorial auction data. Our second result offers a simple sampling technique for amplifying the difficulty of computing a utility-improving lie. An important consequence of our analysis is an argument that using state-of-the-art algorithms for solving combinatorial allocation problems essentially eliminates agent incentives to lie.     

Operational causes of bankruptcy propagation in supply chain

With the increasing interdependence among supply chain members, bankruptcy of a supply chain member may be caused by operational decisions of other members. To investigate how bankruptcy occurs and propagates in supply chain networks, we build a multi-agent simulation model for a two-stage supply chain that consists of multiple upstream manufacturers and multiple downstream retailers. Based on the developed simulation model, we study impacts of various operational parameters and decisions, such as horizontal competition among retailers, order allocation strategies of retailers, wholesale price of manufacturers, characteristics of market demand and number of retailers, on bankruptcy propagation. Since many operational decisions of a firm are made under financial constraints, we also investigate the linkage between firm's operational risks and financial decisions (e.g., the maximal risk of cash flow that a member is willing to take, and the up-front payment proportion of retailers in a two-period payment policy). Experimental results reveal that operational interactions between supply chain members and operational decisions made by supply chain members are important causes of bankruptcy propagation, but impacts of these operational parameters and decisions depend on financial decisions. These observations indicate that supply chain members can moderately hedge their operational risk through financial decisions.     

Parallel characterizations of a generalized Shapley value and a generalized Banzhaf value for cooperative games with level structure of cooperation

We present parallel characterizations of two different values in the framework of restricted cooperation games. The restrictions are introduced as a finite sequence of partitions defined on the player set, each of them being coarser than the previous one, hence forming a structure of different levels of a priori unions. On the one hand, we consider a value first introduced in Ref. [18], which extends the Shapley value to games with different levels of a priori unions. On the other hand, we introduce another solution for the same type of games, which extends the Banzhaf value in the same manner. We characterize these two values using logically comparable properties.