Kyoichi Kijima

Hypergames and bayesian games: A theoretical comparison of the models of games with incomplete information

The present study discusses the relationships between two independently developed models of games with incomplete information, hypergames (Bennett, 1977) and Bayesian games (Harsanyi, 1967). The authors first show that any hypergame can naturally be reformulated in terms of Bayesian games in an unified way. The transformation procedure is called Bayesian representation of hypergame. The authors then prove that some equilibrium concepts defined for hypergames are in a sense equivalent to those for Bayesian games. Furthermore, the authors discuss carefully based on the proposed analysis how each model should be used according to the analyzer’s purpose.

Why Stratification of Networks Emerges in Innovative Society: Intelligent Poly-Agent Systems Approach

This paper rigorously shows in the framework of poly-agent systems theory that it is very natural for an innovative society to emerge stratification of networks to cope with complexity intelligent decision makers of it have to deal with. Before introducing poly-agent systems theory, I will first refer to empirical observations of emergence of stratification of networks in innovative societies, which motivate this research. I, then, theoretically show that coexistence of both networks and hierarchies is reasonable and inevitable for a tightly interrelated society because it can provide the decision makers with mediation, which is beneficial for the decision makers as well as the society as a whole. Finally, I will go back again to implications from our theoretical study.

A co‐evolutionary perspective in medical technology: Clinical innovation systems in Europe and in Japan

Summary We aim to study the innovation process in medical technology from an evolutionary perspective. By considering a case of medical imaging technology in Europe and in Japan for over a decade, our empirical investigation shows that medical organizations clinically evaluate technological alternatives, from which emerge clinical innovations not captured in patents and licenses and more importantly diffused among a larger community of practice, beyond geographic boundaries. These findings direct our attention to propose a model that links technological change and lead users within a microstate innovation system with respect to clinical advances for patients. This model uses a dynamic and interpretative approach that allows variation and selection within and among heterogeneous agents for technological change. In turn, the clinical innovation system provides us with insights into how firms potentially benefit from these localized interactions through a transnational collaborative and collective learning process. This captures the unique and distinct knowledge accumulated by lead users for novel solutions, which is beyond sole product development.

A unified theory of decision principles

Abstract The purpose of this paper is to provide a unified framework to investigate the meanings of decision principles. A decision principle is a guiding rule to define a preference order over the set of alternatives for a given decision problem. Although many decision principles have been proposed as rational ones, it is uniformly agreed that no decision principle is uniformly best and it is an important subject for decision theory to explore the meaning of a decision principle to specify when it is reasonable. This problem has been considered in various ways. This paper, first, characterizes & rational decision principle as a rule which satisfies the two conditions, Pareto consistency and the similarity condition. Pareto consistency has been accepted as an essential condition for a rational decision principle. The similarity condition, which is an original idea of this paper, requires that if two decision problems are structurally similar, then their preference orders induced by a rational decision pri...

An enriched soft systems methodology (SSM) and its application to cultural conflict under a paternalistic value system

A modification of soft systems methodology (SSM) especially suitable for tackling problematic situations under the Eastern cultural influence is proposed. It emerged when we tried to apply SSM to a cultural conflict problem caused by the introduction of new technologies into an R&D institute in Indonesia. Our modification, the main constituent of which is the replacement of the debate stage by what we call indirect debate, is inevitable for dealing with this problem to satisfy the kernel of SSM, since the philosophy of SSM requires communicative competence. We believe that our modified SSM, combined with the descriptive analysis of Davies and with the cultural analysis of Checkland and Scholes, provides a powerful way of improving problematic situations where Eastern cultural factors play dominant roles.

ALGEBRAIC FORMULATION OF RELATIONSHIP BETWEEN A GOAL SEEKING SYSTEM AND ITS ENVIRONMENT

The purpose of this paper is, first, to formalize the key concepts for describing the relationship between a goal seeking system and its relevant environment and, then, mainly based on Ashbys Law of Requisite Variety, to develop a formal discussion on the relationship in the framework of mathematical general systems theory. The law, one of the most well-known laws in the general systems theory, intuitively claims that “only the variety can destroy the variety”. Although the claim is so simple and has attracted more and more attention from organization theory, organizational cybernetics and control theory, the concepts involved are used quite loosely. By defining the concepts of the varieties in terms of equivalence relations, we will formulate the basic logic explaining the relationship between a goal seeking system and its relevant environment and explore its meaning and significance. In this process we will also reveal the meaning of the internal model principle, which says that in order to control the...

A STRUCTURE OF RATIONAL DECISION PRINCIPLES

A problem of decision making under uncertainty or decision making with multiple objectives is not a simple optimization problem and so we have to assume some decision principles on making a decision. So far many decision principles have been proposed as rational ones. This paper tries to reveal an underlying structure of rational decision principles. We first formulate decision problems and principles from the viewpoint of the mathematical general systems theory and then, based on them, specify the class of decision problems as a category and a decision principle as a functor. As a conclusion, we claim that three conditions, i.e., the Pareto consistency, the similarity condition and the invariance condition, compose a fundamental structure of rational decision principles and are naturally represented in the category theoretic framework. In order to support the claim we demonstrated that the linear weighted sum decision principle can be characterized by using these conditions.

Characterization of the linear weighted sum decision principle

Abstract Recently the multicriterion decision problem (MCDP) has attracted more and more attention, and many decision principles have been proposed for it, among which the linear weighted sum decision principle is the most widely used. This paper discusses an axiomatic characterization of that principle to find out its essential meaning. Firstly, we give an axiomatic system characterizing it. Secondly, we examine the meanings of the axioms. Thirdly, we try to give a logical explanation of why the linear weighted sum decision principle is so popular by comparing it with other decision principles for the MCDP and for decision making under uncertainty. Finally, we investigate whether or not decision principles for the MCDP are applicable to decision making under uncertainty and vice versa.

An analysis of an incentive problem considering non‐monetary utility

The present paper describes a new approach to the agency model, which is a cybernetic model designed to analyze the situation in which an economic actor (the principal) controls the behavior of another actor (the agent), by including the factor of non‐monetary utility (intrinsic motivation). The new model addresses an incentive problem in an organization. An organization is considered to be a system constituted by the principal and the agent. Two state variables of this system, namely productivity and intrinsic motivation, are the focus of the present study. The effect of these variables on how to offer incentive is analyzed. The following results were obtained: when productivity is high and the strength of intrinsic motivation and uncertainty of output are low, organizations should introduce performance‐based incentive system.

Incentives design under parametric uncertainty

This paper investigates incentives design problems where the leader lacks precise knowledge on a certain parameter, which describes the problem situation, but the leader can collect information from the follower. We first illustrate that the follower may misrepresent information when the leaders strategy depends on information provided by the follower. To deal with incentives design problems in such a situation, two ideas are proposed. One idea suggests using a misrepresentation-proof optimal incentive strategy (MOIS), which can induce the follower to report true information and simultaneously to take actions in favor of the leaders interest; while the other idea suggests imposing threat to enforce the follower to reveal truth through using a mixed investigation strategy. Furthermore, in the first case we get two kinds of existence conditions of MOIS and two constructing methods for it, while in the second case we examine the mixed investigation strategies which can prevent the follower from misrepresentation, and then evaluate them from the leaders interests.