Testing behavioral simulation models by direct experiment
Article Abstract:
Decision-making mechanisms in large organizations are described. Simulation modeling is used because of its ability to represent complexity, feedback, nonlinearity, and time lags. Interactive gaming is employed in an institutional context and then compared against the decision rules of the model. The model concerns capital investment. After the players make their decisions, the decisions are compared with the model to note variances. The model takes into consideration the multiplier and accelerator effects. The players try to balance supply and demand over time. Results of the modeling indicate that experimental methods are a complementary approach to econometrics in testing simulation models.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1987
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Dominance conditions for multivariate utility functions
Article Abstract:
A comparison of distribution functions, as in the univariate case, and a comparison with random variables defined on the same probability space are used as expressions for determining stochastic dominance conditions. These conditions are given for n-variate utility functions where k-variate risk aversion is assumed for k = 1,2,...,n.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1988
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