Testing the rationality assumption using a design difference in the TV game show 'Jeopardy'

This paper empirically investigates the rationality assumption commonly applied in economic modeling by exploiting a design difference in the game-show Jeopardy between the US and Sweden. In particular we address the assumption of individuals’ capabilities to process complex mathematical problems to find optimal strategies. The vital difference is that US contestants are given explicit information before they act, while Swedish contestants individually need to calculate the same information. Given a rationality assumption of individuals computing optimally, there should be no difference in the strategies used. However, in contrast to the rational and focal bidding behaviors found in the US, the Swedish players display no optimal behavior. Hence, when facing too complex decisions, individuals abandon optimal strategies.Rationality; Bounded Rationality; Field Experiments

A MIP framework for non-convex uniform price day-ahead electricity auctions

It is well-known that a market equilibrium with uniform prices often does not exist in non-convex day-ahead electricity auctions. We consider the case of the non-convex, uniform-price Pan-European day-ahead electricity market "PCR" (Price Coupling of Regions), with non-convexities arising from so-called complex and block orders. Extending previous results, we propose a new primal-dual framework for these auctions, which has applications in both economic analysis and algorithm design. The contribution here is threefold. First, from the algorithmic point of view, we give a non-trivial exact (i.e. not approximate) linearization of a non-convex 'minimum income condition' that must hold for complex orders arising from the Spanish market, avoiding the introduction of any auxiliary variables, and allowing us to solve market clearing instances involving most of the bidding products proposed in PCR using off-the-shelf MIP solvers. Second, from the economic analysis point of view, we give the first MILP formulations of optimization problems such as the maximization of the traded volume, or the minimization of opportunity costs of paradoxically rejected block bids. We first show on a toy example that these two objectives are distinct from maximizing welfare. We also recover directly a previously noted property of an alternative market model. Third, we provide numerical experiments on realistic large-scale instances. They illustrate the efficiency of the approach, as well as the economics trade-offs that may occur in practice

Determination of dichlobenil and its major metabolite (BAM) in onions by PTV–GC–MS using PARAFAC2 and experimental design methodology

The optimization of a GC–MS analytical procedure which includes derivatization, Quick Easy Cheap Effective Rugged and Safe (QuEChERS) and programmed temperature vaporization (PTV) using design of experiments is performed to determine 2,6-dichlorobenzonitrile (dichlobenil) and 2,6-dichlorobenzamide (BAM) in onions, using 3,5-dichlorobenzonitrile and 2,4-dichlorobenzamide as internal standards. The use of a central composite design and two D-optimal designs, together with the desirability function, makes it possible to significantly reduce the economic, time and environmental cost of the study. The usefulness of PARAFAC2 for solving problems as the interference of unexpected derivatization artifacts unavoidably linked to some derivatization agents, or the presence of coeluents from the complex matrix, which share m/z ratios with the target compounds, is shown. The limits of decision (CCα) of the optimized procedure, 5.00 μg kg− 1 for dichlobenil and 1.55 μg kg− 1 for BAM (α = 0.05), are below the maximum residue limit (MRL) established by the EU for dichlobenil (20 μg kg− 1) in this commodity.Ministerio de Economía y Competitividad (CTQ2011-26022) and Junta de Castilla y León (BU108A11-2

From Social Simulation to Integrative System Design

As the recent financial crisis showed, today there is a strong need to gain "ecological perspective" of all relevant interactions in socio-economic-techno-environmental systems. For this, we suggested to set-up a network of Centers for integrative systems design, which shall be able to run all potentially relevant scenarios, identify causality chains, explore feedback and cascading effects for a number of model variants, and determine the reliability of their implications (given the validity of the underlying models). They will be able to detect possible negative side effect of policy decisions, before they occur. The Centers belonging to this network of Integrative Systems Design Centers would be focused on a particular field, but they would be part of an attempt to eventually cover all relevant areas of society and economy and integrate them within a "Living Earth Simulator". The results of all research activities of such Centers would be turned into informative input for political Decision Arenas. For example, Crisis Observatories (for financial instabilities, shortages of resources, environmental change, conflict, spreading of diseases, etc.) would be connected with such Decision Arenas for the purpose of visualization, in order to make complex interdependencies understandable to scientists, decision-makers, and the general public.Comment: 34 pages, Visioneer White Paper, see http://www.visioneer.ethz.c

The role of socio-technical experiments in introducing sustainable Product-Service System innovations

This is the pre-print version of the chapter published in 2015 by Springer in the book “The Handbook of Service Innovation” (edited by Renu Agarwal, Willem Selen, Göran Roos and Roy Green). The final publication is available at Springer via http://dx.doi.org/10.1007/978-1-4471-6590-3_18Product-Service System (PSS) innovations represent a promising approach to sustainability, but their implementation and diffusion are hindered by several cultural, corporate, and regulative barriers. Hence, an important challenge is not only to conceive sustainable PSS concepts, but also to understand how to manage, support, and orient the introduction and diffusion of these concepts. Building upon insights from transition studies (in particular, the concepts of Strategic Niche Management and Transition Management), and through an action research project, the chapter investigates the role of design in introducing sustainable radical service innovations. A key role is given to the implementation of socio-technical experiments, partially protected spaces where innovations can be incubated and tested, become more mature, and potentially favor the implementation and scaling up process

Crossing the interdisciplinary divide : political science and biological science

This article argues that interdisciplinary collaboration can offer significant intellectual gains to political science in terms of methodological insights, questioning received assumptions and providing new perspectives on subject fields. Collaboration with natural scientists has been less common than collaboration with social scientists, but can be intellectually more rewarding. Interdisciplinary work with biological scientists can be especially valuable given the history of links between the two subjects and the similarity of some of the methodological challenges faced. The authors have been involved in two projects with biological scientists and this has led them critically to explore issues relating to the philosophy of science, in particular the similarities and differences between social and natural science, focusing on three issues: the problem of agency, the experimental research design and the individualistic fallacy. It is argued that interdisciplinary research can be fostered through shared understandings of what constitutes 'justified beliefs'. Political science can help natural scientists to understand a more sophisticated understanding of the policy process. Such research brings a number of practical challenges and the authors explain how they have sought to overcome them

How the design of socio-technical experiments can enable radical changes for sustainability

Sustainability requires radical innovations, but their introduction and diffusion usually encounter the opposition of existing socio-technical regimes. An important challenge is, therefore, to understand how to catalyse and support the process of transitioning towards these innovations. Building upon insights from transition studies (in particular the concepts of Strategic Niche Management and Transition Management), and through an action research project (aimed at designing, introducing and diffusing a sustainable mobility system in the suburban areas of Cape Town), the paper investigates the role of design in triggering and orienting societal transformations. A key role is given to the implementation of socio-technical experiments. A new socio-technical system design role emerges: a role in which the ideation and development of sustainable innovation concepts is coupled with the designing of appropriate transition paths to gradually incubate, introduce and diffuse these concepts

Innovation and research in organic farming: A multi‐level approach to facilitate cooperation among stakeholders

A wider range of stakeholders is expected to be involved in organic research. A decision‐support tool is needed to define priorities and to allocate tasks among institutions. Based on research and management experience in organic research, the authors have developed a framework for experimental and research projects. The framework is based on a multi‐level approach. Each level is defined according to the directness of the innovation impact on the organic systems. The projects carried out for each level were assessed over a ten-year period. Two applications are presented: analysis of crop protection strategies in horticulture and plant breeding programmes. When combined with four development models of organic farming, this multi‐level analysis appears to be promising for defining research agendas