Information Effect of Entry Into Credit Ratings Market: The Case of Insurers\u27 Ratings

The paper analyzes the effect of competition between credit rating agencies (CRAs) on the information content of ratings. We show that a monopolistic CRA pools sellers into multiple rating classes and has partial market coverage. This provides an opportunity for market entry. The entrant designs a rating scale distinct from that of the incumbent. It targets higher-than-average companies in each rating grade of the incumbent\u27s rating scale and employs more stringent rating standards. We use Standard and Poor\u27s (S&P) entry into the market for insurance ratings previously covered by a monopolist, A.M. Best, to empirically test the impact of entry on the information content of ratings. The empirical analysis reveals that S&P required higher standards to assign a rating similar to the one assigned by A.M. Best and that higher-than-average quality insurers in each rating category of A.M. Best chose to receive a second rating from S&P

Stabilization of multivariable systems with constrained control structure

Ankara : The Department of Electrical Engineering and the Institute of Graduate Studies of Bilkent Univ. , 1988.Thesis (Master's) -- Bilkent University, 1988.Includes bibliographical references leaves 49-51.The following problem is considered: Given a multivariable system with m inputs and r outputs and an m x r matrix whose nonnegative (i,j)’th element represents the cost of setting up a feedback link from the j ’th output to the i’th input, find a set of feedback links with minimum total cost, which does not give rise to fixed modes. Utilizing the graph-theoretic characterization of structurally fixed modes, the problem is decomposed into two subproblems, which are then solved by using concepts and results from network theory. The combination of the optimum solutions of the subproblems provides a suboptimal solution to the original problem.Ünyelioğlu, Konur AlpM.S

A systemic framework for the computational analysis of complex economies: An evolutionary-institutional perspective on the ontology, epistemology, and methodology of complexity economics

This theses introduces the idea of a symbiotic relationship between evolutionary-institutional and complexity economics. It consists of two major contributions: The first contribution focuses on how the emerging research program of complexity economics can benefit from evolutionary-institutional theory. I show that complexity economics still lacks an adequate philosophical foundation. I explicate why such a foundation is needed if complexity economics is to promote further scientific progress and that such a foundation must consist of an adequate ontology, epistemology, and methodology. The following parts of the theses then draw upon institutionalist and social theory to develop these three aspects: I derive a definition of complex economic systems by identifying their essential properties. I then propose an epistemology that is based on the concepts of mechanism-based explanation, generative sufficiency, and an extended version of Uskali Mäki's concept of â Models as Isolations and Surrogate Systemsâ . I continue with some methodological considerations and argue that the method of 'Agent based computational economic modeling' must play a distinctive role for the analysis of complex economies. The second contribution of the theses shows how evolutionary-institutionalism can profit from a methodological transfer from complexity economics. In particular I argue that the method of 'Agent based computational modeling' can advance institutionalism both as a formalization device and by providing theoretical concepts that are useful for institutionalist theorizing itself. The theses closes by discussing a potential convergence of evolutionary-institutional and complexity economics and gives an outlook on avenues for further research

'Difficulty' In Text As A Function Of Syntactic Complexity: A Study Of Syntactic Complexity Within And Between Sentences

This work proposes possible categories for analysing complexity in English text. Particular attention is paid to the following categories: the long subject construction, the nominal group, the appositional group, and interpolation structures. These categories are analysed in relation to two dimensions of text: firstly, in relation to the individual sentence, and secondly, in relation to the larger discourse context of clause relations. (A clause relation is a binary relation between members. Each member consists of one or more clauses or sentences). The first dimension examines how the presence of these categories functions to interrupt the structure of the clause as a minimal grammatical form. It is assumed that the structure of the clause is basic to the structure of text and is central to the reading process, When the structure of the clause is interrupted excessively by these categories, it is predicted that there will be a consequent impairment of reading comprehension. The second dimension of complexity examines how the structural interruption of the individual sentence can entail the structural interruption of the clause relation. Syntactic complexity at this level of structure is increased when the minimal grammatical form of the clause relation (that is, the relation between two members) is delayed excessively by structural interruption. Thus, although the individual clause is the primary unit of description in this analysis of complexity, the analysis is not restricted to the single sentence. Moreover, the individual categories proposed are descriptive procedures which derive from the examination of texts as aspects of performance, not as aspects of competence. Finally, the notion of clause is put forward as a grammatical constraint which has important implications for our production of texts. The clause is fundamental to the structure of texts and provides the mechanism for its cohesion

Analysis and Management of Bottlenecks in Supply Networks : Towards a Structured Approach to Stabilization of Inbound Material Flow

PhD thesis in Structural Engineering and Material ScienceAny organization whose business model is based on production relies, and is dependent, on providers of raw material which it transforms into products. Customers’ demand for products, and thus the producing firm’s demand for raw material, generally are not static but change with economic cycles, marketing, entries and exits of competitors, and changing consumer behavior, to name but a few factors. A variety of forecast methods support organizations in their effort to be prepared for demand changes, yet uncertainty about the volumes the market will demand cannot be fully eliminated. The design and management of supply networks has therefore increasingly shifted in the focus of attention as they provide levers for organizations to cope with variability. This thesis aims to augment theory and practice in the management of supply networks by providing a different perspective, a new angle, from where to analyze and to steer the buying firm’s inbound material stream. A bottleneck perspective will be developed in the course of the thesis, and it will be complemented by the identification and discussion of distinct bottleneck management activities, each of which comprised by a multitude of individual measures. Some of these measures fulfill very particular roles, and some serve multiple roles at once, so that the context in which to use these measures is important. Moreover, the discussion of supply networks and activities aimed at securing supply provides clarification as to the popular notions of supply chains and Supply Chain Management (SCM). It will be demonstrated how these concepts collide with actual network structures as well as with common practice. A comprehensive review of literature brings together insights from research fields as diverse as manufacturing systems, systems theory, complexity, and network theory. This review provides the backbone for the development of a tentative conceptual model that will guide the processes of data collection and analysis. The insights from the data analysis and how they relate to the existing body of knowledge are used to devise the foundation of a theory of bottleneck management in supply networks

Rationality in Artificial Intelligence Decision-making

Organisaatioiden päätöksenteossa käytetään enenevissä määrin tekoälyä, jonka odotetaan luovan kilpailuetua sitä käyttäville. Kuitenkin uusien mahdollisuuksien ja hyötyjen myötä päädytään myös uusien ongelmien ja haasteiden pariin. Tekoälyn osalta merkittävä osa näistä haasteista koskee rationaliteettia, jolla tässä tarkoitetaan päätöksenteon takana olevia syitä, niiden suhteita toisiinsa, sekä prosessia, jonka tuloksena ne saadaan. Tekoälyn luomat haasteet päästä näkemään ja ymmärtämään päätösten takana olevia rationaliteetteja luo huolta päätöksenteon reiluudesta, vastuusta, ja luottamuksesta päätöksentekoprosessiin. Lisäksi tekoälyn käyttämän rationaliteetin katsotaan luovan haasteita moraaliselle, refleksiiviselle harkintakyvylle päätöksenteossa. Rationaliteetti sekä toimijuus ovat molemmat oleellisia päätöksenteon kannalta, mutta toimijuus on käsitteenä kehittynyt suuntaan, jossa teknologia ja ihminen nähdään erottamattomia toimijuuden suhteen. Niiden katsotaan muodostavan yhdessä yhteinen toimijuus. Tekoälykeskusteluissa rationaaliteettiin sen sijaan on juurtunut syvälle dualistinen ajattelu, joka on toimijuuden suhteen jo hylätty. Dualistisen ajattelutavan rationaliteetin suhteen voidaan katsoa ylläpitävän tunnistettuja ongelmia tekoälyn suhteen. Tekoälyn rationaliteetin laatua on käsitelty teoreettisesti, mutta tutkimuskentältä puuttuu vielä empiirinen tutkimus aiheesta. Tämä väitöskirja käyttää postfenomenologiaa empiiriseen tutkimukseen siitä, miten tekoälyn käyttö muuttaa päätöksenteon rationaliteettia. Postfenomenologia on yhteensopiva toimijuuden kanssa, joka ymmärretään ei-dualistiseksi. Sen sijaan post- fenomenologia käsittää teknologian “välittäjänä” ihmisten toimijuudelle. Tämä väitöskirja käyttää vastaavaa näkemystä rationaliteetin tarkasteluun, ja siten tuo rationaliteetin ei-dualistisen tarkastelun tasa-arvoiseksi toimijuuden kanssa päätöksenteossa. Esitetty tutkimuskysymys on “Kuinka tekoäly toimii välittäjänä rationaliteetille päätöksenteossa?” Postfenomenologinen analyysi on tarkoitettu käytettäväksi kun tutkitaan tiettyjä teknologioita ja sitä, miten ne toimivat välittäjinä ihmisten olemiselle ja kokemuksille. Nämä välitykset voidaan jakaa ulottuvuuksiin, jotka tässä väitöskirjassa ovat piilottaminen–paljastaminen, mahdollistava–rajoittava, sekä vieraannuttava– osallistava. Empiiriset tutkimukset luovat postfenomenologiassa perustan filosofiselle ja konseptuaaliselle analyysille. Tyypillisesti nämä ovat tapaustutkimuksia konkreettisista teknologioista, jotka voivat olla primäärisiä omia tutkimuksia, perustua sekundääriseen materiaaliin, tai olla tutkijan omaa reflektiota. Vaikka väitöskirjan julkaisut eivät itsessään ole olleet tapaustutkimuksia, käytetty postfenomenologinen tutkimusote käsittää ne sellaisina muodostaen väitöskirjasta monitapaustutkimuksen. Neljä ensimmäistä julkaisua ovat empiirisiä tekoälysovelluksia erilaisilla, mutta verrattavissa olevilla datoilla ja tutkimusasetelmilla. Viimeinen julkaisu on teoreettinen, ja se täydentää aiempia julkaisuita tarjoamalla näkökulman tarkasteltavaan vieraannuttava– osallistava-ulottuvuuteen. Tekoälyn havaittiin piilottavan päätöksien rationaliteettia useissa eri päätöksentekoprosessin vaiheissa, mutta toisaalta myös paljastavan tiettyjä uusia rationaliteettimahdollisuuksia. Piilotuksesta löydettiin kaksi eri tasoa. Ensimmäisellä tasolla rationaliteetin sisältö on piilossa, mutta on nähtävissä, että jotain rationaliteettia on käytetty. Toisella tasolla on piilossa, että päätökseen on edes käytetty rationaliteettia. Sen sijaan päätös vaikuttaa tapahtuneen ilman syitä ikää kuin “automaattisesti.” Rationaliteeteista muodostui abstraktimpeja ja jäykempiä riippumatta tekoälyn käytöstä päätöksenteossa, mikä kuitenkin tyypillisesti paljasti rationaliteetin sisältöä kun päätöksenteko oli osallistavaa, kun taas vieraantuneessa päätöksenteossa tämä prosessi ja rationaliteetti jäi piiloon. Tekoäly luonteensa vuoksi rajoitti rationaliteetteja vertailemaan datan erilaisuuksia ja samanlaisuuksia. Tulokset vihjaavat, että ihmiset ovat itse osallistuvat omaan vieraantumiseensa päätöksenteossa tekoälyn kanssa erityisesti rationaliteetin piilottamisen kautta. Tämä väitöskirja tarjoaa uusia näkemyksiä ja tarkemman tarkastelutason rationaliteettiin ja sen moraaliin tekoälyavusteisessa päätöksenteossa. Väitöskirja myös tarjoaa testattavia väitteitä tekoälyn välityksistä, joita voidaan käyttää teorian kehittämiseen tekoälyn reiluuden ja vastuun näkökulmista. Lisäksi väitöskirja vie rationaliteetin ja organisaatioiden päätöksenteon tutkimuskenttää eteenpäin jättämällä tarpeettoman dualismin pois rationaliteetin osalta. Löydökset myös auttavat ammattilaisia löytämään oleellisia tekoälyn vaikutuksia, jotka on syytä huomioida onnistuneen tekoälyn käytön kannalta.Artificial intelligence (AI) has become increasingly ubiquitous in a variety of organizations for decision-making, and it promises competitive advantages to those who use it. However, with the novel insights and benefits of AI come unprecedented side-effects and externalities, which circle around a theme of rationality. A rationality for a decision is the reasons, the relationships between the reasons, and the process of their emergence. Lack of access to the decision rationality of AI is posed to cause issues with trust in AI due to lack of fairness and accountability. Moreover, AI rationality in moral decisions is seen to pose threats to reflective moral capabilities. While rationality and agency are both fundamental to decision-making, agency has seen a shift into more relational views in which the technical and social are seen as inseparable and co-constituting of each other. However, AI rationality discussions are still heavily entrenched in dualism that has been overcome regarding agency. This entrenchment can contribute to a variety of the issues noted around AI. Moreover, while the types of AI rationality have been considered theoretically, currently the field lacks empirical work to support the discussions revolving around AI rationality. This dissertation uses postphenomenology as a methodology to study empiri- cally how AI in decision-making impacts rationality. Postphenomenology honours anti-dualistic agency: Technology mediates and co-constitutes agency with people in intra-action. This dissertation uses this approach to study the mediation of rationality. Thus, it helps views on rationality to catch up with agency in terms of overcoming unnecessary dualism. The posed research question is “How does AI mediate rationality in decision-making?” Postphenomenological analysis is meant to be used at the level of the technological mediations of a specific technology, such as AI mediation of rationality in decision-making. Mediations can be considered in dimensions. This dissertation considers revealing–concealing, enabling–constraining, and involving–alienating dimensions of mediation to answer the posed research question. In postphenomenology a basis for analysis is provided by empirical works, which are typically case studies of concrete intra-actions between humans and technologies. Postphenomenology as a methodology allows secondary empirical work by others, primary self-conducted studies, and first-person reflection as basis for empirical case analysis. Thus, while the publications of this dissertation are not published as case studies, postphenomenology considers them as such, making this dissertation a multiple case study. The first four publications are empirical works of applied AI with various different types of combinations of human and AI decision-making tasks with different yet comparable data. Data and methodology remain similar across studies in the empirical publications and are well comparable for postphenomenological analysis as case studies. The last publication is a theoretical paper, which provides a complement to the empirical publications on the involving–alienating dimension. AI was found to conceal decision rationality in various stages of AI decision making, while in some cases AI also revealed possibilities for specific, novel rationalities. Two levels of rationality concealment were discovered: The contents of a rationality could become concealed, but also the presence of a rationality in the first place could become concealed. Rationality became more abstract and formalized regardless of whether the rationality was constructed with an AI or not. This formalization constrained rationality by ruling out other valid rationalities. Constraint also happened due to rationalities necessarily taking the specific form of similarities versus differences in the data. The results suggest that people can become involved in their alienation from rationality in AI decision-making. Study of the relationships between the mediation dimensions suggest that the constraint of formalization was revealing with involvement. Otherwise, formalization was both concealed because of and resulted in alienation from AI in decision-making. Results point to the direction that people may be involved in their own alienation via rationality concealment. This dissertation contributes new insights and levels of analysis for AI rationality in decision-making and its moral implications. It provides testable claims about technological mediations that can be used to develop theory and posits that they can be useful in theorizing how to increase AI fairness, accountability, and transparency. Moreover, the dissertation contributes to the field of rationality in management and organizational decision-making by developing rationality beyond unnecessary dualism. For practitioners, the findings guide them to identify relevant AI mediations in decision-making to consider to ensure successful AI adoption and mitigation of its issues in their specific contexts

Operating in uncertainty : growing resilient critical infrastructure organizations

CHDS State/LocalPublicly owned utilities as natural monopolies have historically operated in a relatively controlled environment. As they have become increasingly networked and interdependent with similar enterprises, the level of management complexity has increased dramatically within their operating environment. The leadership skills and worldview of the management of public utilities, based on the Newtonian paradigms of the last century, have not kept pace with these rapidly changing environmental conditions. A gap exists today among leaders of public utilities in understanding that their environment and organization are part of complex adaptive systems and that the implications of operating in a complex environment are substantive. The findings developed through a research process based on written questionnaires and interviews of industry leaders confirmed and expanded the emergent theory of the current situation facing utilities. The findings further support a framework to assess where utilities are today regarding growing resilience into their organization. As utilities' management teams develop a clearer understanding of their current position and the nature of complexity, they can cultivate a strategy using a variety of methods developed in the research to begin the process of adjusting the tacit values, norms and assumptions that comprise the organizational culture to improve resiliency within their enterprise.http://archive.org/details/operatinginuncer109455746Approved for public release; distribution is unlimited

Metropolitan Research

Metropolitan research requires multidisciplinary perspectives in order to do justice to the complexities of metropolitan regions. This volume provides a scholarly and accessible overview of key methods and approaches in metropolitan research from a uniquely broad range of disciplines including architectural history, art history, heritage conservation, literary and cultural studies, spatial planning and planning theory, geoinformatics, urban sociology, economic geography, operations research, technology studies, transport planning, aquatic ecosystems research and urban epidemiology. It is this scope of disciplinary - and increasingly also interdisciplinary - approaches that allows metropolitan research to address recent societal challenges of urban life, such as mobility, health, diversity or sustainability

Metropolitan Research: Methods and Approaches

Metropolitan research requires multidisciplinary perspectives in order to do justice to the complexities of metropolitan regions. This volume provides a scholarly and accessible overview of key methods and approaches in metropolitan research from a uniquely broad range of disciplines including architectural history, art history, heritage conservation, literary and cultural studies, spatial planning and planning theory, geoinformatics, urban sociology, economic geography, operations research, technology studies, transport planning, aquatic ecosystems research and urban epidemiology. It is this scope of disciplinary - and increasingly also interdisciplinary - approaches that allows metropolitan research to address recent societal challenges of urban life, such as mobility, health, diversity or sustainability