Comonotonic Independence: The Critical Test between Classical and Rank-Dependent Utility Theories

This article compares classical expected utility (EU) with the more general rank-dependent utility (RDU) models. The difference between the independence condition for preferences of EU and its comonotonic generalization in RDU provides the exact demarcation between EU and rank-dependent models. Other axiomatic differences are not essential. An experimental design is described that tests this difference between independence and comonotonic independence in its most basic form and is robust against violations of other assumptions that may confound the results, in particular the reduction principle and transitivity. It is well known that in the classical counterexamples to EU, comonotonic independence performs better than full-force independence. For our more general choice pairs, however, we find that comonotonic independence does not perform better. This is contrary to our prior expectation and suggests that rank-dependent models, in full generality, do not provide a descriptive improvement over EU. For rank-dependent models to have a future, submodels and choice situations need to be identified for which rank-dependence does contribute descriptively

The Challenges of Creativity in Software Organizations

Part 1: Creating ValueInternational audienceManaging creativity has proven to be one of the most important drivers in software development and use. The continuous changing market environment drives companies like Google, SAS Institute and LEGO to focus on creativity as an increasing necessity when competing through sustained innovations. However, creativity in the information systems (IS) environment is a challenge for most organizations that is primarily caused by not knowing how to strategize creative processes in relation to IS strategies, thus, causing companies to act ad hoc in their creative endeavors. In this paper, we address the organizational challenges of creativity in software organizations. Grounded in a previous literature review and a rigorous selection process, we identify and present a model of seven important factors for creativity in software organizations. From these factors, we identify 21 challenges that software organizations experience when embarking on creative endeavors and transfer them into a comprehensive framework. Using an interpretive research study, we further study the framework by analyzing how the challenges are integrated in 27 software organizations. Practitioners can use this study to gain a deeper understanding of creativity in their own business while researchers can use the framework to gain insight while conducting interpretive field studies of managing creativity

THE CONSOLIDATED MEASUREMENT OF THE FINANCIAL MARKETS DEVELOPMENT: THE CASE OF TRANSITIONAL ECONOMIES / KONSOLIDUOTAS FINANSŲ RINKŲ IŠSIVYSTYMO VERTINIMAS: PEREINAMŲJŲ EKONOMIKŲ ATVEJIS

The principles and models for the quantitative measurement of the financial markets development at macro level (primarily in cases of transitional economies) are reviewed. The assessment is based on expert evaluation of the identified primary indicators, as well as on determination of the selected indexes of a group of development indicators and financial markets’ development index. Its main criterion is the financial markets development influence on the State competitiveness. Based on the exclusive indicators of global state competitiveness (WEF), four groups of essential primary indicators are considered. They determine the extent of financial markets development (including its sophistication) as expressive partial criteria. The SAW multicriteria evaluation method is also applied as the quantitative modeling instrument. The three‐stage system proposed by the authors was realized by assessing the development stage of financial markets in Lithuania. Santrauka Kompleksinis finansų sistemos vertinimas yra itin aktualus nagrinėjant pereinamojo laikotarpio valstybių, daugiausia naujųjų ES šalių, teorinius bei taikomuosius darnios plėtotes nustatymo aspektus. Šiame straipsnyje apžvelgiami finansų rinkų išsivystymo (pirmiausia rafinuotumo prasmė) vertinimo principai bei modeliai, sudaryti orientuojantis i pagristų daugiakriterinio vertinimo metodu taikymą. Bendruoju kriterijumi imamas valstybės finansų rinkų išsivystymo lygio poveikis ekonominiam konkurenciniam valstybės pranašumui. Suformuotos keturios esminiu pirminiu indikatorių grupės ‐ rinkų rafinuotumo, vertybiniu popierių, bankininkystes ir draudimo rinku grupės, kaip daliniai kriterijai, lemiantys bendrajį finansų rinkų išsivystymo lygi. Vertinimas apima ekspertinį pirminiį indikatorių kiekybinių reikšmių (balais) ir ju reikšmingumu nustatyma, dalinių kriterijų indeksų bei finansu rinkų išsivystymo lygio indekso analitini įvertinimą. Pateikiami Lietuvos finansų rinkų išsivystymo lygio vertinimo rezultatai taikant šią trijų pakopų vertinimo sistemą. First published online: 09 Jun 2011 Reikšminiai žodžiai: finansų rinkos išsivystymo lygis, rinkų rafinuotumas, esminių indikatorių grupės, kiekybinis vertinimas, daugiakriterinio vertinimo metoda