Decision making model on strategic technology investment using game theory

Liao, Wei-Cheng; Yin, Chi-Yen; Chiang, Johannes K.

doi:10.1109/ieem.2009.5372909

Cited by 4 publications

(5 citation statements)

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“…However, there too, it is common to form teams without any actual competition between them. Examples include a selection process for team formations within a single sports club [ 82 ], in governance [ 83 ] or technology investment [ 84 ]. In [ 85 ], they propose a hybrid approach that bears some resemblance to ours.…”

Section: Discussionmentioning

confidence: 99%

Diversity strengthens competing teams

2022

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How does the composition of a collection of individuals affect its outcome in competition with other collections of individuals? Assuming that individuals can be different, we develop a model to interpolate between individual-level interactions and collective-level consequences. Rooted in theoretical mathematics, the model is not constrained to any specific context. Potential applications include research, education, sports, politics, ecology, agriculture, algorithms and finance. Our first main contribution is a game theoretic model that interpolates between the internal composition of an ensemble of individuals and the repercussions for the ensemble as a whole in competition with others. The second main contribution is the rigorous identification of all equilibrium points and strategies. These equilibria suggest a mechanistic underpinning for biological and physical systems to tend towards increasing diversity due to the strength it imparts to the system in competition with others.

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Section: Discussionmentioning

confidence: 99%

Diversity strengthens competing teams

2022

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“…The returns for the operators can be calculated using the NPV [60] and average revenue per user (ARPU) [5]. The cost function here is the result provided by the revenue deduct cost.…”

Section: Finance Of the Companiesmentioning

confidence: 99%

“…The cost function here is the result provided by the revenue deduct cost. To assess the value of an investment, we often apply the Weighted Average Cost of Capital (WACC) to the discount rate for the future cash flow to derive the NPV for investing a business [8,60].…”

Section: Finance Of the Companiesmentioning

confidence: 99%

“…The most important factor is the discount rate while monitoring cash flow from the extension of the present processes of a company. Hence, the capital cost should be considered as the minimal required return on investments (ROI) [5,60].…”

Section: Waccmentioning

confidence: 99%

“…where C t represents the net cash flow within the time span, C 0 represents the initial cost of the investment, r represents the discount rate, and t represents the number of time spans [5,60].…”

Section: Npvmentioning

confidence: 99%

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Optimization of the Spectrum Splitting and Auction for 5th Generation Mobile Networks to Enhance Quality of Services for IoT from the Perspective of Inclusive Sharing Economy

et al. 2021

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Fifth generation (5G) mobile networks can accomplish enhanced communication capabilities and desired to connect things in addition to people. By means of optimally splitting the spectrum to integrate more efficient segments, mobile operators can deliver better Quality of Services (QoS) for Internet of Things (IoT), even the nowadays so-called metaverse need broadband mobile communication. Drawing on the Theory of Quality Value Transformation, we developed a 5G ecosystem as a sustainable organic coalition constituted of planners, providers, and users. Most importantly, we put forward the altruism as the ethics drive for the organic cooperative evolution to sustain the inclusive sharing economy to solve the problem of the Theory of Games and Economic Behavior. On the top of the collaboration framework for the coalition game for 5G, we adopted Pareto Optimality as the target situation for the optimization via cooperative evolution and further apply ISO 25000 to define the metrics for the value of 5G corresponding to Pareto Frontier. Based on the collaboration framework as above, we conducted a survey to gather the features and costs for the 5G spectrum in relation to IoT and the financial status of the mobile operators as the constraint for the optimization. Taking Simultaneous Multi-Round Auction (SMRA) as the standard rule for spectrum auction, we developed a novel optimization program of two hybrid metaheuristics with the combination of Simulated Annealing (SA), Genetic Algorithm (GA), and Random Optimization (RO) for the multiple objectives of quality, usability, and costs. The results of the simulation show that the coalition game for 5G spectrum auction is a dynamic group decision in which the government authority and mobile operators can achieve a synergy to maximize the profits, quality score, and usability, and minimize the costs. Last but not least, the hybrid metaheuristic with SA and RO is more efficient and effective than that with GA and BO, from the perspective of inclusive sharing economy. It is the first study of its kind as we know.

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