Modeling functional requirements using tacit knowledge: a design science research methodology informed approach

The research in this paper adds to the discussion linked to the challenge of capturing and modeling tacit knowledge throughout software development projects. The issue emerged when modeling functional requirements during a project for a client. However, using the design science research methodology at a particular point in the project helped to create an artifact, a functional requirements modeling technique, that resolved the issue with tacit knowledge. Accordingly, this paper includes research based upon the stages of the design science research methodology to design and test the artifact in an observable situation, empirically grounding the research undertaken. An integral component of the design science research methodology, the knowledge base, assimilated structuration and semiotic theories so that other researchers can test the validity of the artifact created. First, structuration theory helped to identify how tacit knowledge is communicated and can be understood when modeling functional requirements for new software. Second, structuration theory prescribed the application of semiotics which facilitated the development of the artifact. Additionally, following the stages of the design science research methodology and associated tasks allows the research to be reproduced in other software development contexts. As a positive outcome, using the functional requirements modeling technique created, specifically for obtaining tacit knowledge on the software development project, indicates that using such knowledge increases the likelihood of deploying software successfully

A Mathematical Approach to Order Book Modeling

Motivated by the desire to bridge the gap between the microscopic description of price formation (agent-based modeling) and the stochastic differential equations approach used classically to describe price evolution at macroscopic time scales, we present a mathematical study of the order book as a multidimensional continuous-time Markov chain and derive several mathematical results in the case of independent Poissonian arrival times. In particular, we show that the cancellation structure is an important factor ensuring the existence of a stationary distribution and the exponential convergence towards it. We also prove, by means of the functional central limit theorem (FCLT), that the rescaled-centered price process converges to a Brownian motion. We illustrate the analysis with numerical simulation and comparison against market data

An empirical behavioral model of price formation

Although behavioral economics has demonstrated that there are many situations where rational choice is a poor empirical model, it has so far failed to provide quantitative models of economic problems such as price formation. We make a step in this direction by developing empirical models that capture behavioral regularities in trading order placement and cancellation using data from the London Stock Exchange. For order placement we show that the probability of placing an order at a given price is well approximated by a Student distribution with less than two degrees of freedom, centered on the best quoted price. This result is surprising because it implies that trading order placement is symmetric, independent of the bid-ask spread, and the same for buying and selling. We also develop a crude but simple cancellation model that depends on the position of an order relative to the best price and the imbalance between buying and selling orders in the limit order book. These results are combined to construct a stochastic representative agent model, in which the orders and cancellations are described in terms of conditional probability distributions. This model is used to simulate price formation and the results are compared to real data from the London Stock Exchange. Without adjusting any parameters based on price data, the model produces good predictions for the magnitude and functional form of the distribution of returns and the bid-ask spread

Ontology based Scene Creation for the Development of Automated Vehicles

The introduction of automated vehicles without permanent human supervision demands a functional system description, including functional system boundaries and a comprehensive safety analysis. These inputs to the technical development can be identified and analyzed by a scenario-based approach. Furthermore, to establish an economical test and release process, a large number of scenarios must be identified to obtain meaningful test results. Experts are doing well to identify scenarios that are difficult to handle or unlikely to happen. However, experts are unlikely to identify all scenarios possible based on the knowledge they have on hand. Expert knowledge modeled for computer aided processing may help for the purpose of providing a wide range of scenarios. This contribution reviews ontologies as knowledge-based systems in the field of automated vehicles, and proposes a generation of traffic scenes in natural language as a basis for a scenario creation.Comment: Accepted at the 2018 IEEE Intelligent Vehicles Symposium, 8 pages, 10 figure