Designing IS service strategy: an information acceleration approach

Information technology-based innovation involves considerable risk that requires insight and foresight. Yet, our understanding of how managers develop the insight to support new breakthrough applications is limited and remains obscured by high levels of technical and market uncertainty. This paper applies a new experimental method based on “discrete choice analysis” and “information acceleration” to directly examine how decisions are made in a way that is behaviourally sound. The method is highly applicable to information systems researchers because it provides relative importance measures on a common scale, greater control over alternate explanations and stronger evidence of causality. The practical implications are that information acceleration reduces the levels of uncertainty and generates a more accurate rationale for IS service strategy decisions

The impact of the mode of thought in complex decisions: intuitive decisions are better

A number of recent studies have reported that decision quality is enhanced under conditions of inattention or distraction (unconscious thought; Dijksterhuis, 2004; Dijksterhuis and Nordgren, 2006; Dijksterhuis et al., 2006). These reports have generated considerable controversy, for both experimental (problems of replication) and theoretical reasons (interpretation). Here we report the results of four experiments. The first experiment replicates the unconscious thought effect, under conditions that validate and control the subjective criterion of decision quality. The second and third experiments examine the impact of a mode of thought manipulation (without distraction) on decision quality in immediate decisions. Here we find that intuitive or affective manipulations improve decision quality compared to analytic/deliberation manipulations. The fourth experiment combines the two methods (distraction and mode of thought manipulations) and demonstrates enhanced decision quality, in a situation that attempts to preserve ecological validity. The results are interpreted within a framework that is based on two interacting subsystems of decision-making: an affective/intuition based system and an analytic/deliberation system

Theories on motivation and their implication for supporting communication, learning and decisionmaking in relation to organic food systems

Efforts to promote communication, learning, decision making and change of individual and/or collective practices in relation to sustainability issues require more or less explicit theories on agents and what motivate them to act. The aim of this paper is to open for an interdisciplinary discussion on how different approaches to motivation make sense or not when focusing on how to develop tools aiming at supporting communica¬tion, learning and decision-making related to organic food systems. We present four quite different approaches to motivation – an economic, an approach challenging conventional understandings of motivational change, a psychosocial, and a relational – and open for a discussion on how these approaches relate to each other and whether it is possible to apply and distinguish between different ways of using the concept of motivation when we cross disciplinary borders in order to cooperate on developing tools for multi-criteria assessment and communication

It's all about tax rates: An empirical study of tax perception

In this paper we apply conjoint analysis to study the influence of changes in the tax rate and the tax base on the perceived tax burden. Our results show that the majority of individuals do not make rational tax decisions based on the actual tax burden, but rather use simple decision heuristics. This leads to the importance of the tax rate being significantly overestimated and the importance of the tax base being significantly underestimated. Furthermore we determine framing effects and show that under specific assumptions, a rise in the actual tax burden can lead to a electoral success. --behavioral public finance,decision heuristics,framing effects,perceived tax burden,tax-cut-cum-base-broadening,tax complexity,tax illusion

A prescriptive approach to qualify and quantify customer value for value-based requirements engineering

Recently, customer-based product development is becoming a popular paradigm. Customer expectations and needs can be identified and transformed into requirements for product design with the help of various methods and tools. However, in many cases, these models fail to focus on the perceived value that is crucial when customers make the decision of purchasing a product. In this paper, a prescriptive approach to support value-based requirements engineering (RE) is proposed, describing the foundations, procedures and initial applications in the context of RE for commercial aircraft. An integrated set of techniques, such as means-ends analysis, part-whole analysis and multi-attribute utility theory is introduced in order to understand customer values in depth and width. Technically, this enables identifying the implicit value, structuring logically collected statements of customer expectations and performing value modelling and simulation. Additionally, it helps to put in place a system to measure customer satisfaction that is derived from the proposed approach. The approach offers significant potential to develop effective value creation strategies for the development of new product

A Theory of Vague Expected Utility

We propose a new theory of choice between lotteries, which combines an 'economic’ view of decision making - based on a rational, though incomplete, ordering - with a 'psychological’ view - based on heuristics. This theory can explain observed violations of EU theory, namely all cyclical patterns of choice as well as violations of independence.incomplete preference relation; cyclical preferences; expected utility

Goals and Plans in Protective Decision Making

Protective decisions are often puzzling. Among other anomalies, people insure against non-catastrophic events, underinsure against catastrophic risks, and allow extraneous factors to influence insurance purchases and other protective decisions. Neither expected utility theory nor prospect theory can explain these anomalies satisfactorily. We propose a constructed-choice model for general decision making. The model departs from utility theory and prospect theory in its treatment of multiple goals and it suggests several different ways in which context can affect choice. To apply this model to the above anomalies, we consider many different insurance-related goals, organized in a taxonomy, and we consider the effects of context on goals, resources, plans and decision rules. The paper concludes by suggesting some prescriptions for improving individual decision making with respect to protective measures.

Representing Concepts by Weighted Formulas

A concept is traditionally defined via the necessary and sufficient conditions that clearly determine its extension. By contrast, cognitive views of concepts intend to account for empirical data that show that categorisation under a concept presents typicality effects and a certain degree of indeterminacy. We propose a formal language to compactly represent concepts by leveraging on weighted logical formulas. In this way, we can model the possible synergies among the qualities that are relevant for categorising an object under a concept. We show that our proposal can account for a number of views of concepts such as the prototype theory and the exemplar theory. Moreover, we show how the proposed model can overcome some limitations of cognitive views

A comparison of five multi attribute utility instruments

Abstract This paper presents the results of the validation study carried out to evaluate the Assessment of Quality of Life (AQoL) Instrument for the measurement of health related quality of life and utility. It involves, inter alia, the largest comparison of utility instruments that has been carried out to date. The five instruments included in the study are the AQoL, the Canadian HUI III, the Finnish 15D, the EuroQoL (EQ5D) and the SF36 with UK utility weights as quantified by Brazier (1998). The paper compares: (i) the absolute utility score obtained by different sub-populations; (ii) instrument sensitivity; (iii) the incremental differences in utility between different health states; (iv) the structural properties of descriptive systems; and (v) a limited comparison with a Time Trade-Off (TTO) assessment of own health by individuals. Using these criteria the AQoL performs very well. Its predicted utilities are very similar to those obtained from the HUI. There is evidence that the AQoL has greater sensitivity to health states than other instruments and its psychometric properties, as usually judged, are excellent. Despite this, it is concluded that, at present, no single MAU system can claim to be the gold standard and that researchers should select an instrument that is sensitive to the health states which they are investigating and that caution should be exercised in treating any of the instrument results as representing a utility score which truly represents a trade-off between life and health related quality of life