Showing papers by "Aalto University published in 1989"
TL;DR: In this article, the distribution of the ratio of the absolute values of the two correlated normal random variables is computed as a two-dimensional integral where one integral is over an infinite interval and the other integral can be reduced to a single integral over a finite interval.
Abstract: Our objective in this paper is to propose an efficient method to compute the distribution of the ratio of the absolute values of the two correlated normal random variables. The problem can be solved as a two–dimensional integral where one integral is over an infinite interval. However, by a linear transformation the problem can be reduced to a single integral over a finite interval. The integral can be evaluated by numerical integration. It is easy to program and the program is computationally efficient.
68 citations
TL;DR: The use of optimization to design parameters, table functions and new model structure is shown to produce a very significantly improved performance for this model compared to conventional approaches.
Abstract: This paper presents the use of optimization as a tool for policy analysis and design in system dynamics models, and presents a demonstration of its use on the ‘project model’ developed by G. P. Richardson and A. L. Pugh III in their book Introduction to System Dynamics Modelling with DYNAMO. The use of optimization to design parameters, table functions and new model structure is shown to produce a very significantly improved performance for this model compared to conventional approaches.
34 citations
01 Jan 1989
TL;DR: The authors take up the conflict between expressed preferences for collective goods, such as environmental quality, and actual behaviour in society, and discuss possible reasons for this attitude-behaviour inconsistency found in empirical studies.
Abstract: The paper takes up the conflict between expressed preferences for collective goods, such as environmental quality, and actual behaviour in society. In discussing possible reasons for this attitude-behaviour inconsistency found in empirical studies, a distinction is made between preferences and choices.
27 citations
TL;DR: The power of the test, based on pairwise preference information, to identify to which class of functions a decision-maker's (implicit) value function belongs, is investigated.
Abstract: In a recent paper we presented a test, based on pairwise preference information, to identify to which class of functions (linear, quasi-concave, or neither) a decision-maker's (implicit) value function belongs. In this note we investigate the power of the test. Some improvements to the test are also suggested.
16 citations
TL;DR: A framework which includes elements from economics, diffusion theories, organizational learning and growth and stages theory is developed, which looks at what broader theoretical features are applied in the models presented in information systems research.
Abstract: Of all organizational phenomena and management techniques, the use of computers and data processing have been perhaps the most distinct and penetrating. The steady progress of technology and common patterns of growth have inspired a whole body of literature on the evolution of information systems. This article reviews the relevant literature and the theoretical underpinnings of different views. We develop a framework which includes elements from economics, diffusion theories, organizational learning and growth and stages theory. Within this framework we integrate different views on the subject and look at what broader theoretical features are applied in the models presented in information systems research. On the basis of the review, we draw some conclusions about the limitations of the models and the need for future research in the field.
15 citations
01 Oct 1989
TL;DR: This work proposes an ''evolutionary approach'' to decision problems that can be described by means of linear models, where the decision-maker does not have to specify the model precisely prior to solving the problem.
Abstract: We consider decision problems that can be described by means of linear models. Depending upon how the objective functions(s) and constraints are treated, traditionally such models have been solved using linear programming, fuzzy linear programming, multiple objective linear programming or ''what-if'' -analysis. The use of these approaches is associated with a number of difficulties. We propose that an ''evolutionary approach'' be used to resolve such difficulties. In this approach, the decision-maker does not have to specify the model precisely prior to solving the problem. In fact, the model evolves progressively. A real-life application to a media selection problem is described.
15 citations
01 Jan 1989
TL;DR: Many interactive procedures have been developed for solving optimization problems having multiple criteria, in which an exploration over the feasible or efficient region is conducted for locating the most preferred solution.
Abstract: Many interactive procedures have been developed for solving optimization problems having multiple criteria In such procedures, an exploration over the feasible or efficient region is conducted for locating the most preferred solution As Steuer (1986) notes, interactive procedures are characterized by phases of decision-making alternating with phases of computation Generally a pattern is established that we keep repeating until termination At each iteration, a solution, or group of solutions, is generated for a decision-maker’s (DM’s) examination Based on the examination, the DM inputs information to the solution procedure in the form of tradeoffs, pairwise comparisons, aspiration levels, etc The responses are used to generate a presumably, improved solution, and so forth
13 citations
TL;DR: The economic depression of the mid-1970s gave reasons to question many presuppositions taken almost for granted earlier as discussed by the authors, which was the case with the welfare state too, which was seen to be in crisis.
Abstract: The economic depression of the mid‐1970s gave reasons to question many presuppositions taken almost for granted earlier. This was the case with the welfare state too, which was seen to be in crisis. This study focuses on one particular aspect of the welfare state, namely, its acceptability or legitimacy among the citizens of Finland.
11 citations
TL;DR: In this article, the impact of the four most societally loaded changes in political and infra-structural conditions of the forest sector: its position in the core of the Finnish economy, the ownership of the key resources, the use of timber as the basic source of welfare, and the logging and transportation infrastructure.
Abstract: This article attempts to understand the dynamics of institutional management processes. This concept is defined here as managerial action vis‐a‐vis emerging political and infra‐structural conditions for business in the nation‐state arena. For this purpose the emerging patterns of relationships between business and politics in the Finnish forest sector are described and analysed. Our focus is on the impact of the four most societally loaded changes in political and infra‐structural conditions of the forest sector: its position in the core of the Finnish economy, the ownership of the key resources, the use of timber as the basic source of welfare, and the logging and transportation infrastructure. These changes become the key issues for the level of institutional management in the forest sector. They have remained significant over the studied long‐term period, but the efforts of their moulding have changed over time. These dynamics of institutional management are found to follow a cycle, divided in seven phases, coined as: (1) offensive confrontation, (2) operational co‐operation, (3) differentiation of institutional management, (4) exploitation of a core position, (5) justification of expansion and growth, (6) legitimation of decline, and (7) defensive confrontation. The authors provide examples and evidence of these changing patterns of institutional management, and offer a proposition about the underlying dynamics of the cycle.
9 citations
01 Jan 1989
TL;DR: In this article, the problem of finding, for a given non-defined solution, a set of nondominated tradeoffs is dealt with, and the current solution is preferred to all of the tradeoffs, provided that the decision maker's value function is assumed to be (globally) pseudoconcave at the moment of consideration.
Abstract: This paper deals with the problem of finding, for a given nondominated solution, a set of nondominated tradeoffs. Such tradeoffs play a central role in interactive multiple objective linear programming procedures when direction-finding and termination are considered. If the current solution is preferred to all of the tradeoffs, it is optimal, provided that the decision maker’s value (utility) function is assumed to be (globally) pseudo-concave at the moment of consideration. If any of the tradeoffs is a direction of improvemet, a new search direction can be found and the procedure continues as earlier.
9 citations
TL;DR: In this article, a model containing five types of entrepreneurial strategy is developed based on an analysis of entrepreneurial behaviour and tested in a survey of Scandinavian small scale companies in order to identify the entrepreneurial strategy which will succeed in open European markets.
Abstract: The variables characterizing entrepreneurship in various contingencies and the dynamism between contingencies are explored in order to identify the entrepreneurial strategy which will succeed in open European markets. A model containing five types of entrepreneurial strategy is developed based on an analysis of entrepreneurial behaviour and tested in a survey of Scandinavian small scale companies.
01 Jan 1989
TL;DR: PARETO RACE is a corner-stone of VIG (Visual Interactive Goal Programming), a Multiple Criteria Decision Support System, recently developed by Korhonen, which is designed to support both the modelling and solving of a multiple objective linear programming problem.
Abstract: In this paper we describe the principles of VIG (Visual Interactive Goal Programming), a Multiple Criteria Decision Support System, recently developed by Korhonen. PARETO RACE is a corner-stone of this system, which is designed to support both the modelling and solving of a multiple objective linear programming problem. The interface is based on one main menu, spreadsheets, and interactive use of computer graphics. VIG provides the decision-maker with the possibility to approach his/her decision problem by using an “evolutionary approach”. This means that the decision-maker does not have to specify the model precisely prior to solving the problem. In fact, the model evolves progressively. We also discuss several applications of VIG to practical problems.
01 Jan 1989
TL;DR: This paper discusses several common misunderstandings and pitfalls in multiple objective linear programming research and provides some suggestions for avoiding them.
Abstract: In this paper we discuss several common misunderstandings and pitfalls in multiple objective linear programming research and provide some suggestions for avoiding them. The discussion focuses on widely used concepts of efficiency. We also point out seemingly harmless misunderstandings pertaining to improper use of payoff tables. We illustrate the discussion using graphical and numerical examples.
TL;DR: In this paper, the authors describe how managers from various organisational positions jointly produce certain innovative outcomes in certain industries and corporate contexts (Maidique 1980, Burgelman & Sayles 1986).
Abstract: In modern corporations, internal R&D is considered an important source of new products and, therefore, a major mechanism of new business generation. Innovation studies report, however, that only a small fraction of all R&D projects are successful. They recognise that the quality of management is a key factor in predicting the outcome of innovation processes. In spite of this consensus, only a few empirical studies have described how managers from various organisational positions jointly produce certain innovative outcomes in certain industries and corporate contexts (Maidique 1980, Burgelman & Sayles 1986).
01 Jan 1989
TL;DR: Most management problems typically have multiple criteria and are semistructured and common in strategic planning, financial planning, personnel allocation, resource allocation, advertising, and pricing.
Abstract: Most management problems typically have multiple criteria and are semistructured. Such problems are common in strategic planning, financial planning, personnel allocation, resource allocation, advertising, and pricing.
TL;DR: The evidence from the study is that the quality and quantity of information for corporate strategic decision making can be fundamentally extended by such a computer-based integration.
TL;DR: In this article, the authors deal with the mutual interest of both economic and social theory in exploring a broader concept of the rational and in finding validity claims for rational discourse, and discuss efficiency and effectiveness as possible validity criteria in evaluating norms in practical discussion.
Abstract: . The paper deals with the mutual interest of both economic and social theory in exploring a broader concept of the rational and in finding validity claims for rational discourse. Efficiency and effectiveness are discussed as possible validity criteria in evaluating norms in practical discussion. In addition to the problem of defining validity criteria for argumentation on norms and social choices, a major difficulty arises from the lack of a legitimate reflective centre in society which could integrate behaviour with norms and metapreferences. As ways of motivating cooperative, collective action, both norm commitment and self-interest should be appealed to.