Sequential International Joint-Ventures and the Option to Choose

The purpose of this study is to formalize the optimal choice of market entry strategy for an individual multinational enterprise (MNE) from a dynamic perspective. It is argued that incorporating a suitable treatment of irreversibility, uncertainty and flexibility related to a MNEs investment decision gives further insights to the expansion, dissolvement, and optimal timing of international joint ventures (IJVs). The evolutionary process of the value of the foreign direct investment can be interpreted as a compound complex chooser option. The results suggest that uncertainty, size of equity share and future investment/divestment opportunities play an important role when it comes to transit from export to the first phase of the foreign direct investment commitment. The paper underscores the importance of modeling the dynamics of market entry and helps to refine the application of real options in the alliance context by providing a closed-form solution in continuous time to valueForeign direct investment, multinational enterprise, sequential investments, entry mode, international joint venture, real options

Early Quantitative Assessment of Non-Functional Requirements

Non-functional requirements (NFRs) of software systems are a well known source of uncertainty in effort estimation. Yet, quantitatively approaching NFR early in a project is hard. This paper makes a step towards reducing the impact of uncertainty due to NRF. It offers a solution that incorporates NFRs into the functional size quantification process. The merits of our solution are twofold: first, it lets us quantitatively assess the NFR modeling process early in the project, and second, it lets us generate test cases for NFR verification purposes. We chose the NFR framework as a vehicle to integrate NFRs into the requirements modeling process and to apply quantitative assessment procedures. Our solution proposal also rests on the functional size measurement method, COSMIC-FFP, adopted in 2003 as the ISO/IEC 19761 standard. We extend its use for NFR testing purposes, which is an essential step for improving NFR development and testing effort estimates, and consequently for managing the scope of NFRs. We discuss the advantages of our approach and the open questions related to its design as well

Type space on a purely measurable parameter space

Several game theoretical topics require the analysis of hierarchical beliefs, particularly in incomplete information situations. For the problem of incomplete information, Hars´anyi suggested the concept of the type space. Later Mertens & Zamir gave a construction of such a type space under topological assumptions imposed on the parameter space. The topological assumptions were weakened by Heifetz, and by Brandenburger & Dekel. In this paper we show that at very natural assumptions upon the structure of the beliefs, the universal type space does exist. We construct a universal type space, which employs purely a measurable parameter space structure

Ethics outside, within or beyond OR models

Since ethical concerns are calling for more attention within Operational Research, we present three approaches to combine Operational Research models with ethics. Our intention is to clarify the trade-offs faced by the OR community, in particular the tension between the scientific legitimacy of OR models (ethics outside OR models) and the integration of ethics within models (ethics within OR models). Presenting and discussing an approach that combines OR models with the process of OR (ethics beyond OR models), we suggest rigorous ways to express the relation between ethics and OR models. As our work is exploratory, we are trying to avoid a dogmatic attitude and call for further research. We argue that there are interesting avenues for research at the theoretical, methodological and applied levels and that the OR community can contribute to an innovative, constructive and responsible social dialogue about its ethics.Ethics, models, processes, OR

An overview of economic applications of David Schmeidler`s models of decision making under uncertainty

This paper surveys some economic applications of the decision theoretic framework pioneered by David Schmeidler to model effects of ambiguity. We have organized the discussion principally around three themes: financial markets, contractual arrangements and game theory. The first section discusses papers that have contributed to a better understanding of financial market outcomes based on ambiguity aversion. The second section focusses on contractual arrangements and is divided into two sub-sections. The first sub-section reports research on optimal risk sharing arrangements, while in the second sub-section, discusses research on incentive contracts. The third section concentrates on strategic interaction and reviews several papers that have extended different game theoretic solution concepts to settings with ambiguity averse players. A final section deals with several contributions which while not dealing with ambiguity per se, are linked at a formal level, in terms of the pure mathematical structures involved, with Schmeidler`s models of decision making under ambiguity. These contributions involve issues such as, inequality measurement, intertemporal decision making and multi-attribute choice.Ellsberg Paradox, Ambiguity aversion, Uncertainty aversion

Towards a new vision of Information System Engineering.

Information Technologies bear the potential of new uses. These uses provoke a new organization which induces a new vision of software engineering. Under the influence of globalization, and the impact of Information and Communication Technologies (ICT) that modify radically our relationship with space and time, the hierarchical company locked up on its local borders becomes an Extended Company, without borders, opened and adaptable. In this context, this paper proposes a shift in the way the design of information systems is viewed, so that the digital information system and potential user are in harmony right from the design stage of the system. The goal is to help to design systems that are useful. It will therefore be a matter of distributed intelligence of the situation in terms of interactions and cooperative partners rather than in terms of a more passive user. This means putting at the disposal of the user, seen as a "partner", a system that will help him or her think more efficiently about a situation. The approach adopted is a global philosophy based on business process management within the framework of all the methodological principles. The research described here is therefore a contribution to the software engineering.User; Software Engineering; Information System; Business Process Management; Extended Company; Digital Information System;

Corporate environmental assessment by a bank lender : a social constructionist perspective

Over the last decade evidence has emerged which suggests that lenders are considering environmental impact of corporate borrowers as part of their lending decisions. Environmental consideration by lenders may considerably influence the level of financial support available for economic growth and environmemntal management. The primary aim of this research project is to examine the development and use of corporate environmental assessment techniques by members of a commercial lending bank. The research will build upon previous findings that highlight the influences of culture upon bank members perception of environmental credit risks. Specific emphasis will be placed on evaluating the role of mechanisms for the communiaction of bank policy. These will be analysed to find out how and why corporate environmental performance considerations shape the lending process. Research will be undertaken in the form of a case study facilitated by Lloyds TSB Group plc. Analysis will centre on an evaluation of the rationalities for environmental assessment displayed by bank members and their justification for the application of specific environemnatal assessment techniques. The findings are expected to be of direct practical benefit to bank lending officers and others interested in lending processes and/or corporate environmental assessment techniques