Issues

Journal & Issues

AHEAD OF PRINT

Volume 66 (2021): Issue 4 (December 2021)

Volume 66 (2021): Issue 3 (December 2021)

Volume 66 (2021): Issue 2 (December 2021)

Volume 66 (2021): Issue 1 (December 2021)

Volume 65 (2020): Issue 1 (December 2020)

Volume 64 (2020): Issue 1 (December 2020)

Volume 63 (2020): Issue 1 (September 2020)

Volume 62 (2020): Issue 1 (June 2020)

Volume 61 (2020): Issue 1 (March 2020)

Volume 60 (2019): Issue 1 (December 2019)

Volume 59 (2019): Issue 1 (September 2019)

Volume 58 (2019): Issue 1 (June 2019)

Volume 57 (2019): Issue 1 (March 2019)

Volume 56 (2018): Issue 1 (December 2018)

Volume 55 (2018): Issue 1 (September 2018)

Volume 54 (2018): Issue 1 (June 2018)

Volume 53 (2018): Issue 1 (March 2018)

Volume 52 (2017): Issue 1 (December 2017)

Volume 51 (2017): Issue 1 (September 2017)

Volume 50 (2017): Issue 1 (June 2017)

Volume 49 (2017): Issue 1 (March 2017)

Volume 48 (2016): Issue 1 (December 2016)

Volume 47 (2016): Issue 1 (December 2016)

Volume 46 (2016): Issue 1 (September 2016)

Volume 45 (2016): Issue 1 (June 2016)

Volume 44 (2016): Issue 1 (March 2016)

Volume 43 (2015): Issue 1 (December 2015)

Volume 42 (2015): Issue 1 (September 2015)

Volume 41 (2015): Issue 1 (June 2015)

Volume 40 (2015): Issue 1 (March 2015)

Volume 39 (2014): Issue 1 (December 2014)

Volume 38 (2014): Issue 1 (September 2014)

Volume 37 (2014): Issue 1 (June 2014)
Mechanisms and Methods of Decision Making / Ed. by Ewa Roszkowska

Volume 36 (2014): Issue 1 (March 2014)

Volume 35 (2013): Issue 1 (December 2013)

Volume 34 (2013): Issue 1 (October 2013)

Volume 33 (2013): Issue 1 (August 2013)

Volume 32 (2013): Issue 1 (May 2013)

Journal Details
Format
Journal
eISSN
2199-6059
ISSN
0860-150X
First Published
08 Aug 2013
Publication timeframe
4 times per year
Languages
English

Search

Volume 37 (2014): Issue 1 (June 2014)
Mechanisms and Methods of Decision Making / Ed. by Ewa Roszkowska

Journal Details
Format
Journal
eISSN
2199-6059
ISSN
0860-150X
First Published
08 Aug 2013
Publication timeframe
4 times per year
Languages
English

Search

14 Articles
Open Access

Distributive Justice: From Steinhaus, Knaster, and Banach to Elster and Rawls — The Perspective of Sociological Game Theory

Published Online: 08 Aug 2014
Page range: 11 - 38

Abstract

Abstract

This article presents a relatively straightforward theoretical framework about distributive justice with applications. It draws on a few key concepts of Sociological Game Theory (SGT). SGT is presented briefly in section 2. Section 3 provides a spectrum of distributive cases concerning principles of equality, differentiation among recipients according to performance or contribution, status or authority, or need. Two general types of social organization of distributive judgment are distinguished and judgment procedures or algorithms are modeled in each type of social organization. Section 4 discusses briefly the larger moral landscapes of human judgment – how distribution may typically be combined with other value into consideration. The article suggests that Rawls, Elster, and Machado point in this direction. Finally, it is suggested that the SGT framework presented provides a useful point of departure to systematically link it and compare the Warsaw School of Fair Division, Rawls, and Elster, among others.

Keywords

  • distributive justice
  • fair division
  • sociological game theory
  • adjudicated distribution
  • self-organized distribution
  • distributive procedures/algorithms
Open Access

How Firms Can Hedge Against Market Risk

Published Online: 08 Aug 2014
Page range: 39 - 49

Abstract

Abstract

The article presents a problem of proper hedging strategy in expected utility model when forward contracts and options strategies are available. We consider a case of hedging when an investor formulates his own expectation on future price of underlying asset. In this paper we propose the way to measure effectiveness of hedging strategy, based on optimal forward hedge ratio. All results are derived assuming a constant absolute risk aversion utility function and a Black-Scholes framework.

Keywords

  • hedging
  • Black-Scholes model
  • derivatives
  • options
  • forward
  • utility function
  • effectiveness of hedging strategy
Open Access

Multidimensional Risk Management for Underground Electricity Networks

Published Online: 08 Aug 2014
Page range: 51 - 69

Abstract

Abstract

In the paper we consider an electricity provider company that makes decision on allocating resources on electric network maintenance. The investments decrease malfunction rate of network nodes. An accidental event (explosion, fire, etc.) or a malfunctioning on underground system can have various consequences and in different perspectives, such as deaths and injuries of pedestrians, fires in nearby locations, disturbances in the flow of vehicular traffic, loss to the company image, operating and financial losses, etc. For this reason it is necessary to apply an approach of the risk management that considers the multidimensional view of the consequences. Furthermore an analysis of decision making should consider network dependencies between the nodes of the electricity distribution system. In the paper we propose the use of the simulation to assess the network effects (such as the increase of the probability of other accidental event and the occurrence of blackouts of the dependent nodes) in the multidimensional risk assessment in electricity grid. The analyzed effects include node overloading due to malfunction of adjacent nodes and blackouts that take place where there is temporarily no path in the grid between the power plant and a node. The simulation results show that network effects have crucial role for decisions in the network maintenance – outcomes of decisions to repair a particular node in the network can have significant influence on performance of other nodes. However, those dependencies are non-linear. The effects of network connectivity (number of connections between nodes) on its multidimensional performance assessment depend heavily on the overloading effect level. The simulation results do not depend on network type structure (random or small world) – however simulation outcomes for random networks have shown higher variance compared to small-world networks.

Keywords

  • cascade failure
  • network decision making
  • underground electricity grids
Open Access

The Occurrence of the Day-of-the-Week Effects on Polish and Major World Stock Markets

Published Online: 08 Aug 2014
Page range: 71 - 88

Abstract

Abstract

The aim of this paper is to analyze the occurrence of the so called day of the week effects in market return time series from the period of January 2003 to September 2013 (and additionally January 1999 to December 2002). The study focuses on four indices of the Warsaw Stock Exchange (WIG, WIG20, mWIG40 and sWIG80) and additionally five indices of major world stock exchanges (NIKKEI 225, DAX, CAC40, S&P 500, and IBEX). The main data sample was divided into three subperiods in order to determine whether or not the intensity of day of the week anomalies is constant in time. The study revealed a substantial number of the day of the week anomalies in earliest subperiods and very limited evidence of those effects in later ones, giving rise to the conclusion that the intensity of the day of the week anomalies is diminishing with time. The most common effect identified on the WSE was a positive Friday effect. The Monday effect often described in early literature on the subject matter seems to currently occur very rarely. The study also indicates that the day of the week effects were more persistent among stocks with smaller market capitalization on the WSE.

Keywords

  • stock market anomalies
  • day of the week effect
  • Warsaw Stock Exchange
  • market efficiency
Open Access

Optimizing Firm Inventory Costs as a Fuzzy Problem

Published Online: 08 Aug 2014
Page range: 89 - 105

Abstract

Abstract

The fixed order quantity model of inventory management system is used in the deterministic part. Several elements of inventory cost, such as ordering cost, transportation and storing costs, frozen capital cost, as well as extra rebates, are taken into account in the model. Then the fuzzy optimization problem for the total cost function is formulated within the space of Ordered Fuzzy Numbers when all variables of the model are fuzzy. After the choice of a particular defuzzification functional an appropriate theorem is formulated which gives the solution of the problem.

Keywords

  • Ordered Fuzzy Numbers
  • defuzzification funcionals
  • management of supply
Open Access

Decision Support System for Blockage Management in Fire Service

Published Online: 08 Aug 2014
Page range: 107 - 123

Abstract

Abstract

In this article we present the foundations of a decision support system for blockage management in Fire Service. Blockage refers to the situation when all fire units are out and a new incident occurs. The approach is based on two phases: off-line data preparation and online blockage estimation. The off-line phase consists of methods from data mining and natural language processing and results in semantically coherent information granules. The online phase is about building the probabilistic models that estimate the block-age probability based on these granules. Finally, the selected classifier judges whether a blockage can occur and whether the resources from neighbour fire stations should be asked for assistance.

Keywords

  • Knowledge Discovery
  • Domain Knowledge
  • Granular Modeling
  • Layered Architectures
  • Fire Services
  • Text Data
  • Heterogeneous Data Sources
Open Access

Clustering Algorithms in Hybrid Recommender System on MovieLens Data

Published Online: 08 Aug 2014
Page range: 125 - 139

Abstract

Abstract

Decisions are taken by humans very often during professional as well as leisure activities. It is particularly evident during surfing the Internet: selecting web sites to explore, choosing needed information in search engine results or deciding which product to buy in an on-line store. Recommender systems are electronic applications, the aim of which is to support humans in this decision making process. They are widely used in many applications: adaptive WWW servers, e-learning, music and video preferences, internet stores etc. In on-line solutions, such as e-shops or libraries, the aim of recommendations is to show customers the products which they are probably interested in. As input data the following are taken: shopping basket archives, ratings of the products or servers log files.

The article presents a solution of recommender system which helps users to select an interesting product. The system analyses data from other customers' ratings of the products. It uses clustering methods to find similarities among the users and proposed techniques to identify users' profiles. The system was implemented in Apache Mahout environment and tested on a movie database. Selected similarity measures are based on: Euclidean distance, cosine as well as correlation coefficient and loglikehood function.

Keywords

  • recommender system
  • support of decision making
  • clustering
Open Access

Number of Clusters and the Quality of Hybrid Predictive Models in Analytical CRM

Published Online: 08 Aug 2014
Page range: 141 - 157

Abstract

Abstract

Making more accurate marketing decisions by managers requires building effective predictive models. Typically, these models specify the probability of customer belonging to a particular category, group or segment. The analytical CRM categories refer to customers interested in starting cooperation with the company (acquisition models), customers who purchase additional products (cross- and up-sell models) or customers intending to resign from the cooperation (churn models). During building predictive models researchers use analytical tools from various disciplines with an emphasis on their best performance. This article attempts to build a hybrid predictive model combining decision trees (C&RT algorithm) and cluster analysis (k-means). During experiments five different cluster validity indices and eight datasets were used. The performance of models was evaluated by using popular measures such as: accuracy, precision, recall, G-mean, F-measure and lift in the first and in the second decile. The authors tried to find a connection between the number of clusters and models' quality.

Keywords

  • hybrid predictive models
  • analytical CRM
  • decision trees
  • k-means
Open Access

Environmental Quality as a Decisive Variable in Shaping Regional Development Policy

Published Online: 08 Aug 2014
Page range: 159 - 178

Abstract

Abstract

The article examines the impact of environmental quality on shaping the development policy of Polish voivodeships. The main analytical tool used was the synthetic index of environmental quality, compiled by means of the Perkal method. It was constructed in order to organize Polish voivodeships in terms of environmental quality, which was determined in a comprehensive way on the basis of three thematic areas: advantages of the natural environment, the level of pollution (degradation) of the environment as well as active protective activities. The obtained values of synthetic measures were then compared to the level of economic growth of Polish regions. It was necessary in determining which voivodeships perceive the quality of the environment as the main factor enhancing their economic growth, and which treat it as a barrier to economic development.

Keywords

  • environmental quality
  • Perkal method
  • economic growth
  • regional development policy
Open Access

On Imprecise Investment Recommendations

Published Online: 08 Aug 2014
Page range: 179 - 194

Abstract

Abstract

The return rate is considered here as a fuzzy probabilistic set. Then the expected return is obtained as a fuzzy subset in the real line. This result is a theoretical foundation for new investment strategies. All considered strategies result of comparison profit fuzzy index and limit value. In this way we obtain an imprecise investment recommendation. Financial equilibrium criteria are a special case of comparison of the profit index and the limit value. The following criteria are generalized here: the Sharpe's Ratio, the Jensen's Alpha and the Treynor's Ratio. Moreover, the safety-first criteria are generalized here for the fuzzy case. The Roy Criterion, the Kataoka Criterion and the Telser Criterion are also generalized. Obtained results show that proposed theory is useful for the investment applications.

Open Access

The Multi-Criteria Negotiation Analysis Based on the Membership Function

Published Online: 08 Aug 2014
Page range: 195 - 217

Abstract

Abstract

In this paper we propose a multi-criteria model based on the fuzzy preferences approach which can be implemented in the prenegotiation phase to evaluate the negotiations packages. The applicability of some multi-criteria ranking methods were discussed for building a scoring function for negotiation packages. The first one is Simple Additive Weighting (SAW) technique which determines the sum of the partial satisfactions from each negotiation issue and aggregate them using the issue weights. The other one is Distance Based Methods (DBM), with its extension based on the distances to ideal or anti-ideal package, i.e. the TOPSIS procedure. In our approach the negotiator's preferences over the issues are represented by fuzzy membership functions and next a selected multi-criteria decision making method is adopted to determine the global rating of each package. The membership functions are used here as the equivalents of utility functions spread over the negotiation issues, which let us compare different type of data. One of the key advantages of the approach proposed is its usefulness for building a general scoring function in the ill-structured negotiation problem, namely the situation in which the problem itself as well as the negotiators preferences cannot be precisely defined, the available information is uncertain, subjective and vague. Secondly, all proposed variants of scoring functions produce consistent rankings, even though the new packages are added (or removed) and do not result in rank reversal.

Keywords

  • negotiation support
  • membership function
  • fuzzy multi-criteria methods
Open Access

Market Basket Analysis as a Support Tool for The Management of Public Transport

Published Online: 08 Aug 2014
Page range: 219 - 237

Abstract

Abstract

The aim of this paper is to characterize a non-standard use of the method of market basket analysis in one of the areas of economy, i.e. public transport. Generally, one of the aims of the market basket analysis method is associating the consumer's market basket – in the case of public transport this being the choice of bus stops in the city area made by passengers. Owing to a new, practical use of this method, it was possible to build an efficient model characterizing the movement of flows of public transport passengers, and assess the degree of transferring (changing lines), thus making it possible to adapt the routes of buses to the needs of people using this particular means of transport, as well as to plot new communication lines.

The data analysis was performed using the Statistica statistical package and its SAL application, i.e. the algorithms used in Data Mining.

Keywords

  • market basket analysis
  • data mining
  • SAL
  • associations and sequences
  • flows of passengers
  • decision
Open Access

Equitable Distribution in a Three Players Problem

Published Online: 08 Aug 2014
Page range: 239 - 252

Abstract

Abstract

Jazz band is a 3 player superadditive game in characteristic function form. Three players have to divide the payoff they can get, while being in a grand coalition, provided their individual and duo coalitions payoffs are known. Assumptions of individual and collective rationality lead to the notion of the core of the game. We discuss offers that cannot readily be refused [OCRR] as the solutions of the game in case of an empty core, when duo coalitions are the best options but only for two out of three players. The experiment shows that even in case of an empty core the most probable results are three-way coalitions and the share of the weakest player usually exceeds his OCRR. The Shapley value is introduced and its fairness is discussed as it lies at the side of the core while, on the other hand, the nucleolus lies exactly at the center of the core. We conclude that, in spite of that, the Shapley value is the best candidate for a fair sharing solution of the jazz band game and other similar games as, opposite to the other values, it is dependent both on individual and duo coalitions payoffs.

Keywords

  • game theory
  • core of the game
  • Shapley value
  • nucleolus
Open Access

Assorted Methods of Making of Pricing Decisions in an Enterprise

Published Online: 08 Aug 2014
Page range: 253 - 261

Abstract

Abstract

Decisions concerning price development are best visible in view of their direct impact on the market activities of the company and the general level of profitability. In every activity, the success is measured by an excess of sales revenue over the costs of used resources. In an ideal case, a determined price provides the highest margin resulting from an analysis of the sales volume, takes into consideration the customer's evaluation of the product/service, and allows to react to competitive threats and to fend off the competition's attacks. There is no single universal way to develop prices for various enterprise types, regardless of the conditions of demand, the specific character of the sector they operate in, or the competitive situation, even if we assume that the enterprise has only one goal of activity. That's why, Author recommends three price determination methods. The ways of price determination presented in this article are just the first step on the way to reach the optimal prices. The prices determined in such way, as well as product or service prices already functioning in the market, are subject to modification depending on the assumed goals, taking into consideration the character of demand for a given commodity and the behaviour of the competition.

Keywords

  • price
  • pricing decision
  • pricing policy
  • marginal revenue
  • marginal cost
  • price elasticity of demand
14 Articles
Open Access

Distributive Justice: From Steinhaus, Knaster, and Banach to Elster and Rawls — The Perspective of Sociological Game Theory

Published Online: 08 Aug 2014
Page range: 11 - 38

Abstract

Abstract

This article presents a relatively straightforward theoretical framework about distributive justice with applications. It draws on a few key concepts of Sociological Game Theory (SGT). SGT is presented briefly in section 2. Section 3 provides a spectrum of distributive cases concerning principles of equality, differentiation among recipients according to performance or contribution, status or authority, or need. Two general types of social organization of distributive judgment are distinguished and judgment procedures or algorithms are modeled in each type of social organization. Section 4 discusses briefly the larger moral landscapes of human judgment – how distribution may typically be combined with other value into consideration. The article suggests that Rawls, Elster, and Machado point in this direction. Finally, it is suggested that the SGT framework presented provides a useful point of departure to systematically link it and compare the Warsaw School of Fair Division, Rawls, and Elster, among others.

Keywords

  • distributive justice
  • fair division
  • sociological game theory
  • adjudicated distribution
  • self-organized distribution
  • distributive procedures/algorithms
Open Access

How Firms Can Hedge Against Market Risk

Published Online: 08 Aug 2014
Page range: 39 - 49

Abstract

Abstract

The article presents a problem of proper hedging strategy in expected utility model when forward contracts and options strategies are available. We consider a case of hedging when an investor formulates his own expectation on future price of underlying asset. In this paper we propose the way to measure effectiveness of hedging strategy, based on optimal forward hedge ratio. All results are derived assuming a constant absolute risk aversion utility function and a Black-Scholes framework.

Keywords

  • hedging
  • Black-Scholes model
  • derivatives
  • options
  • forward
  • utility function
  • effectiveness of hedging strategy
Open Access

Multidimensional Risk Management for Underground Electricity Networks

Published Online: 08 Aug 2014
Page range: 51 - 69

Abstract

Abstract

In the paper we consider an electricity provider company that makes decision on allocating resources on electric network maintenance. The investments decrease malfunction rate of network nodes. An accidental event (explosion, fire, etc.) or a malfunctioning on underground system can have various consequences and in different perspectives, such as deaths and injuries of pedestrians, fires in nearby locations, disturbances in the flow of vehicular traffic, loss to the company image, operating and financial losses, etc. For this reason it is necessary to apply an approach of the risk management that considers the multidimensional view of the consequences. Furthermore an analysis of decision making should consider network dependencies between the nodes of the electricity distribution system. In the paper we propose the use of the simulation to assess the network effects (such as the increase of the probability of other accidental event and the occurrence of blackouts of the dependent nodes) in the multidimensional risk assessment in electricity grid. The analyzed effects include node overloading due to malfunction of adjacent nodes and blackouts that take place where there is temporarily no path in the grid between the power plant and a node. The simulation results show that network effects have crucial role for decisions in the network maintenance – outcomes of decisions to repair a particular node in the network can have significant influence on performance of other nodes. However, those dependencies are non-linear. The effects of network connectivity (number of connections between nodes) on its multidimensional performance assessment depend heavily on the overloading effect level. The simulation results do not depend on network type structure (random or small world) – however simulation outcomes for random networks have shown higher variance compared to small-world networks.

Keywords

  • cascade failure
  • network decision making
  • underground electricity grids
Open Access

The Occurrence of the Day-of-the-Week Effects on Polish and Major World Stock Markets

Published Online: 08 Aug 2014
Page range: 71 - 88

Abstract

Abstract

The aim of this paper is to analyze the occurrence of the so called day of the week effects in market return time series from the period of January 2003 to September 2013 (and additionally January 1999 to December 2002). The study focuses on four indices of the Warsaw Stock Exchange (WIG, WIG20, mWIG40 and sWIG80) and additionally five indices of major world stock exchanges (NIKKEI 225, DAX, CAC40, S&P 500, and IBEX). The main data sample was divided into three subperiods in order to determine whether or not the intensity of day of the week anomalies is constant in time. The study revealed a substantial number of the day of the week anomalies in earliest subperiods and very limited evidence of those effects in later ones, giving rise to the conclusion that the intensity of the day of the week anomalies is diminishing with time. The most common effect identified on the WSE was a positive Friday effect. The Monday effect often described in early literature on the subject matter seems to currently occur very rarely. The study also indicates that the day of the week effects were more persistent among stocks with smaller market capitalization on the WSE.

Keywords

  • stock market anomalies
  • day of the week effect
  • Warsaw Stock Exchange
  • market efficiency
Open Access

Optimizing Firm Inventory Costs as a Fuzzy Problem

Published Online: 08 Aug 2014
Page range: 89 - 105

Abstract

Abstract

The fixed order quantity model of inventory management system is used in the deterministic part. Several elements of inventory cost, such as ordering cost, transportation and storing costs, frozen capital cost, as well as extra rebates, are taken into account in the model. Then the fuzzy optimization problem for the total cost function is formulated within the space of Ordered Fuzzy Numbers when all variables of the model are fuzzy. After the choice of a particular defuzzification functional an appropriate theorem is formulated which gives the solution of the problem.

Keywords

  • Ordered Fuzzy Numbers
  • defuzzification funcionals
  • management of supply
Open Access

Decision Support System for Blockage Management in Fire Service

Published Online: 08 Aug 2014
Page range: 107 - 123

Abstract

Abstract

In this article we present the foundations of a decision support system for blockage management in Fire Service. Blockage refers to the situation when all fire units are out and a new incident occurs. The approach is based on two phases: off-line data preparation and online blockage estimation. The off-line phase consists of methods from data mining and natural language processing and results in semantically coherent information granules. The online phase is about building the probabilistic models that estimate the block-age probability based on these granules. Finally, the selected classifier judges whether a blockage can occur and whether the resources from neighbour fire stations should be asked for assistance.

Keywords

  • Knowledge Discovery
  • Domain Knowledge
  • Granular Modeling
  • Layered Architectures
  • Fire Services
  • Text Data
  • Heterogeneous Data Sources
Open Access

Clustering Algorithms in Hybrid Recommender System on MovieLens Data

Published Online: 08 Aug 2014
Page range: 125 - 139

Abstract

Abstract

Decisions are taken by humans very often during professional as well as leisure activities. It is particularly evident during surfing the Internet: selecting web sites to explore, choosing needed information in search engine results or deciding which product to buy in an on-line store. Recommender systems are electronic applications, the aim of which is to support humans in this decision making process. They are widely used in many applications: adaptive WWW servers, e-learning, music and video preferences, internet stores etc. In on-line solutions, such as e-shops or libraries, the aim of recommendations is to show customers the products which they are probably interested in. As input data the following are taken: shopping basket archives, ratings of the products or servers log files.

The article presents a solution of recommender system which helps users to select an interesting product. The system analyses data from other customers' ratings of the products. It uses clustering methods to find similarities among the users and proposed techniques to identify users' profiles. The system was implemented in Apache Mahout environment and tested on a movie database. Selected similarity measures are based on: Euclidean distance, cosine as well as correlation coefficient and loglikehood function.

Keywords

  • recommender system
  • support of decision making
  • clustering
Open Access

Number of Clusters and the Quality of Hybrid Predictive Models in Analytical CRM

Published Online: 08 Aug 2014
Page range: 141 - 157

Abstract

Abstract

Making more accurate marketing decisions by managers requires building effective predictive models. Typically, these models specify the probability of customer belonging to a particular category, group or segment. The analytical CRM categories refer to customers interested in starting cooperation with the company (acquisition models), customers who purchase additional products (cross- and up-sell models) or customers intending to resign from the cooperation (churn models). During building predictive models researchers use analytical tools from various disciplines with an emphasis on their best performance. This article attempts to build a hybrid predictive model combining decision trees (C&RT algorithm) and cluster analysis (k-means). During experiments five different cluster validity indices and eight datasets were used. The performance of models was evaluated by using popular measures such as: accuracy, precision, recall, G-mean, F-measure and lift in the first and in the second decile. The authors tried to find a connection between the number of clusters and models' quality.

Keywords

  • hybrid predictive models
  • analytical CRM
  • decision trees
  • k-means
Open Access

Environmental Quality as a Decisive Variable in Shaping Regional Development Policy

Published Online: 08 Aug 2014
Page range: 159 - 178

Abstract

Abstract

The article examines the impact of environmental quality on shaping the development policy of Polish voivodeships. The main analytical tool used was the synthetic index of environmental quality, compiled by means of the Perkal method. It was constructed in order to organize Polish voivodeships in terms of environmental quality, which was determined in a comprehensive way on the basis of three thematic areas: advantages of the natural environment, the level of pollution (degradation) of the environment as well as active protective activities. The obtained values of synthetic measures were then compared to the level of economic growth of Polish regions. It was necessary in determining which voivodeships perceive the quality of the environment as the main factor enhancing their economic growth, and which treat it as a barrier to economic development.

Keywords

  • environmental quality
  • Perkal method
  • economic growth
  • regional development policy
Open Access

On Imprecise Investment Recommendations

Published Online: 08 Aug 2014
Page range: 179 - 194

Abstract

Abstract

The return rate is considered here as a fuzzy probabilistic set. Then the expected return is obtained as a fuzzy subset in the real line. This result is a theoretical foundation for new investment strategies. All considered strategies result of comparison profit fuzzy index and limit value. In this way we obtain an imprecise investment recommendation. Financial equilibrium criteria are a special case of comparison of the profit index and the limit value. The following criteria are generalized here: the Sharpe's Ratio, the Jensen's Alpha and the Treynor's Ratio. Moreover, the safety-first criteria are generalized here for the fuzzy case. The Roy Criterion, the Kataoka Criterion and the Telser Criterion are also generalized. Obtained results show that proposed theory is useful for the investment applications.

Open Access

The Multi-Criteria Negotiation Analysis Based on the Membership Function

Published Online: 08 Aug 2014
Page range: 195 - 217

Abstract

Abstract

In this paper we propose a multi-criteria model based on the fuzzy preferences approach which can be implemented in the prenegotiation phase to evaluate the negotiations packages. The applicability of some multi-criteria ranking methods were discussed for building a scoring function for negotiation packages. The first one is Simple Additive Weighting (SAW) technique which determines the sum of the partial satisfactions from each negotiation issue and aggregate them using the issue weights. The other one is Distance Based Methods (DBM), with its extension based on the distances to ideal or anti-ideal package, i.e. the TOPSIS procedure. In our approach the negotiator's preferences over the issues are represented by fuzzy membership functions and next a selected multi-criteria decision making method is adopted to determine the global rating of each package. The membership functions are used here as the equivalents of utility functions spread over the negotiation issues, which let us compare different type of data. One of the key advantages of the approach proposed is its usefulness for building a general scoring function in the ill-structured negotiation problem, namely the situation in which the problem itself as well as the negotiators preferences cannot be precisely defined, the available information is uncertain, subjective and vague. Secondly, all proposed variants of scoring functions produce consistent rankings, even though the new packages are added (or removed) and do not result in rank reversal.

Keywords

  • negotiation support
  • membership function
  • fuzzy multi-criteria methods
Open Access

Market Basket Analysis as a Support Tool for The Management of Public Transport

Published Online: 08 Aug 2014
Page range: 219 - 237

Abstract

Abstract

The aim of this paper is to characterize a non-standard use of the method of market basket analysis in one of the areas of economy, i.e. public transport. Generally, one of the aims of the market basket analysis method is associating the consumer's market basket – in the case of public transport this being the choice of bus stops in the city area made by passengers. Owing to a new, practical use of this method, it was possible to build an efficient model characterizing the movement of flows of public transport passengers, and assess the degree of transferring (changing lines), thus making it possible to adapt the routes of buses to the needs of people using this particular means of transport, as well as to plot new communication lines.

The data analysis was performed using the Statistica statistical package and its SAL application, i.e. the algorithms used in Data Mining.

Keywords

  • market basket analysis
  • data mining
  • SAL
  • associations and sequences
  • flows of passengers
  • decision
Open Access

Equitable Distribution in a Three Players Problem

Published Online: 08 Aug 2014
Page range: 239 - 252

Abstract

Abstract

Jazz band is a 3 player superadditive game in characteristic function form. Three players have to divide the payoff they can get, while being in a grand coalition, provided their individual and duo coalitions payoffs are known. Assumptions of individual and collective rationality lead to the notion of the core of the game. We discuss offers that cannot readily be refused [OCRR] as the solutions of the game in case of an empty core, when duo coalitions are the best options but only for two out of three players. The experiment shows that even in case of an empty core the most probable results are three-way coalitions and the share of the weakest player usually exceeds his OCRR. The Shapley value is introduced and its fairness is discussed as it lies at the side of the core while, on the other hand, the nucleolus lies exactly at the center of the core. We conclude that, in spite of that, the Shapley value is the best candidate for a fair sharing solution of the jazz band game and other similar games as, opposite to the other values, it is dependent both on individual and duo coalitions payoffs.

Keywords

  • game theory
  • core of the game
  • Shapley value
  • nucleolus
Open Access

Assorted Methods of Making of Pricing Decisions in an Enterprise

Published Online: 08 Aug 2014
Page range: 253 - 261

Abstract

Abstract

Decisions concerning price development are best visible in view of their direct impact on the market activities of the company and the general level of profitability. In every activity, the success is measured by an excess of sales revenue over the costs of used resources. In an ideal case, a determined price provides the highest margin resulting from an analysis of the sales volume, takes into consideration the customer's evaluation of the product/service, and allows to react to competitive threats and to fend off the competition's attacks. There is no single universal way to develop prices for various enterprise types, regardless of the conditions of demand, the specific character of the sector they operate in, or the competitive situation, even if we assume that the enterprise has only one goal of activity. That's why, Author recommends three price determination methods. The ways of price determination presented in this article are just the first step on the way to reach the optimal prices. The prices determined in such way, as well as product or service prices already functioning in the market, are subject to modification depending on the assumed goals, taking into consideration the character of demand for a given commodity and the behaviour of the competition.

Keywords

  • price
  • pricing decision
  • pricing policy
  • marginal revenue
  • marginal cost
  • price elasticity of demand

Plan your remote conference with Sciendo