Insightful theorems are established on interrelationships among coalition and noncooperative stability concepts defined within the paradigm of the Graph Model for Conflict Resolution. More specifically, the newly defined coalition stability definitions that are considered are coalition Nash stability (CNash), coalition general metarationality (CGMR), coalition symmetric metarationality (CSMR) and coalition sequential stability (CSEQ), along with their earlier-defined noncooperative versions. A range of interesting new theorems are derived to establish connections among these coalition stability concepts as well as between noncooperative and coalition stability definitions. Applications with respect to the games of Prisoner’s Dilemma and Chicken, as well as a groundwater contamination dispute, demonstrate how the various stability definitions can be applied in practice and confirm the validity of some of the theorems as well as point out, by example, certain types of relationships which cannot hold.

This paper deals with optimal pricing of a personalized product such as a personal portrait or photo. A new model of the pricing structure inspired by two real-life cases is introduced to the literature and solved to obtain optimal photo sitting fees and the final product price. A sensitivity analysis with respect to the problem parameters is performed.

We study an assembly system where one assembler produces a final product to satisfy the price sensitive and uncertain demands. One unit of final product needs inputs from n complementary components each provided from a distinct supplier. The assembler orders from the suppliers and their relationships are governed by price-only contracts. The assembler practices two alternative pricing schemes: a fixed pricing scheme by which she fixes a retail price in all market situations, and a responsive pricing scheme by which she adjusts retail prices after observing actual demand curves. We find that, when the assembler practices the two pricing schemes, the suppliers charge the same wholesale prices, channel profit is allocated among the firms according to the same proportions, and the relative performances of the system under decentralized decision makings with respect to those under centralized decision makings are the same. Furthermore, responsive pricing improves the assembler’s absolute performance, and the gains pass over to the suppliers in terms of higher profits and to the customers in terms of enhanced product availability and lowered market price.

This paper studies a service firm whose business time can be divided into several periods, each providing different value to customers. Heterogeneous service is a major reason resulting in imbalances between supply and demand. Since customers differ in their degree of impatience, firms can use differential pricing mechanisms to optimize their objectives and match supply with demand in each period, by inducing customers to choose different periods. We study two types of firms, an internal firm, the objective of which is to maximize the system’s (including the firm and all the customers) total net value, and a commercial firm, which aims to optimize its own profit. Though impatience factors are customers’ private information, for each type of firm, we derive the optimal incentive compatible pricing policy, under which all the coming customers will follow the firm’s assignment, that is, patient customers will buy the service in high-value periods, but their waiting time will be longer, while impatient customers will enter into the low-value periods, but they will be compensated by shorter waiting times. Furthermore, in the internal firm, we also prove that this mechanism enables the decentralization of decisions, while maintaining centralized system-wide optimality. Numerical analysis shows that when there is sufficient capacity, the internal firm does not always need to set lower prices than the commercial firm in every period.

This paper studies a production system where products are produced continuously and whose specification limits are specified for screening inspection. In this paper, we consider dual quality characteristics and different costs associated with each quality characteristic that falls below a lower specification limit or above an upper specification limit. Due to these different costs, the expected total profit will greatly depend on the process parameters, especially a process mean. This paper develops a Markovian-based model for determining the optimum process means with the consideration of dual quality characteristics in a single-stage system. The proposed model is then illustrated through a numerical example and sensitivity analysis is performed to validate the model. The results showed that the optimum process mean for both quality characteristics have a significant effect on the performance of the system. Since the literature survey shows that dealing with multi-quality characteristics is extremely limited, the proposed model, coupled with the Markovian approach, provides a unique contribution to this field.

We present a step-by-step approach for constructing a framework for knowledge process analysis (KPA). We intend to apply this framework to the analysis of own research projects in an exploratory way and elaborate it through the accumulation of case studies. This study is based on a methodology consisting of knowledge process modeling, primitives synthesis, and reflective verification. We describe details of the methodology and present the results of case studies: a novel methodology, a practical work guide, and a tool for KPA; insights for improving future research projects and education; and the integration of existing knowledge creation theories.

Corporations need to improve business processes in order to enhance velocity and service levels while reducing their processing costs and differentiating themselves in the face of competition. The levitation of importance beyond support roles has raised IT investment decisions to high priority in chief executive officers’ agendas. Corporate planning groups as well as lines of business are increasingly applying techniques of IT applications portfolio management in a more systematic fashion to improve decision-making and resource-allocation processes.

Recent advances in software engineering and IT service delivery methodologies have achieved the logical separation of business functions from implementation. This separation has made a new breed of innovative IT project possible with a new project risk structure; the adjustment of portfolio management techniques is appropriate. We present an integrated portfolio management model so that the corporation can focus on organic growth through sources at both the department and top management levels. The research gives clear advice as to how top management can seek economic growth by selecting an entrepreneurial strategic posture, implying a strong risk-taking propensity. By integrating a risk-return model and risk-tolerance paradigm to cope with today’s risk structure, overall capabilities can improve the decision process and the corporation’s performance as well. The application of the integrated technique to a Japanese manufacturing firm is described.