On ordinal utility, cardinal utility, and random utility

Though the Random Utility Model (RUM) was conceived  entirely in terms of ordinal utility, the apparatus throughwhich it is widely practised exhibits properties of  cardinal utility.  The adoption of cardinal utility as a  working operation of ordinal is perfectly valid, provided  interpretations drawn from that operation remain faithful  to ordinal utility.  The paper considers whether the latterrequirement holds true for several measurements commonly  derived from RUM.  In particular it is found that  measurements of consumer surplus change may depart from  ordinal utility, and exploit the cardinality inherent in  the practical apparatus.

Engineering Open Innovation – a Framework for Fostering Open Innovation

Open innovation is an emerging innovation paradigm that can greatly accelerate technical knowledge innovation in software companies. The increasing importance and density of software in today’s products and services puts extensive pressure on excelling the discovery, description and execution of innovation. Despite that, software engineering literature lacks methods, tools and frameworks for full exploitation of technological advantages that open innovation can bring. This paper proposes a software engineering framework, designed to foster open inno- vation by designing and tailoring appropriate software engineering meth- ods and tools. Furthermore, this paper discusses the methodological and process dimensions and outlines challenge areas that should be reviewed when transitioning to software engineering driven open innovation