Article

Managing asymmetric information effects in decision making: Task complexity-based model

Oct 01, 2020

DOI: 10.1504/IJQET.2020.110318

Published in: International Journal of Quality Engineering and Technology

Publisher: Inderscience

/ Belkacem Athamena / zina houhamdi / Ghaleb El Refae

This paper proposes a formal model to manage the impact of asymmetric information in decision-making by using principal-agent problems in which an agent (who has incomplete information) must decide to perform or not perform a task on behalf of the principal. After performing a complex (simple) task, the agent underrates (overrates) his competence. As a consequence of underestimation, a competent agent may decide to stop performing the task henceforth. The agent infers his competence from his productivity on a performed task. However, the productivity depends on both the agent's competence and the task complexity. To avoid this situation, the company appoints a mentor (fully informed superior agent) who can determine the task complexity and assess the agent's competence. Accordingly, the mentor matches the task complexity perfectly with the agent's competence. In cases where the mentor and the junior have different preferences, the mentor may not confess all information to the agent. Nevertheless, the mentor desires the agent to fulfill the task. This paper proposes a solution for all of these situations by using a mathematical model. The model assesses the agent's competence based on his productivity and the mentor's appraisal and assists the agent in making the right decision.

Other Researches

Smart Contracts and Blockchain-Based Tools for Privacy-Preservation

This research paper aims to investigate smart contracts and Blockchain technology to build a privacy-sensitive application focusing on a Digital Medication Plan (DMR) containing prescriptions. The DMR is used just as a use case. However, the propose...

Impact of religious tourism on the economic development, energy consumption and environmental degradation: evidence from the Kingdom of Saudi Arabia

Purpose: Saudi Arabia is the main destination of religious tourism, as it has many spiritual places. With the passage of years, the figures for pilgrim visits are increasing, which is contributing to the economic growth of the Kingdom of Saudi Arabi...

Retention contracts with asymmetric information: optimistic approach vs pessimistic approach

Purpose: This paper aims to focus on the utilization of retention contracts to screen and discipline managers in a context in which the council, board of directors, possesses incomplete information about the consequences of managers’ decisions. The ...

Retention Contracts under Partial Information Electoral Competition Case Study

This study copes with a class of principal-agent problems where information asymmetry represents an important characteristic. The paper examines the relationship between the principal and agents. The principal has to perform two agents’ screening an...

Formal Approach to Data Accuracy Evaluation

Usually, data quality is defined by multiple attributes that allow classifying the output data (such as completeness, freshness, and accuracy) or the methods exploiting these data (such as dependability, performance, and protection). Among the sugge...

Multi-agents collaboration in open system

Share constrained resources, accomplish complex tasks and achieve shared or individual goals are examples requiring collaboration between agents in multi-agent systems. The collaboration necessitates an effective team composed of a set of agents tha...

Identity Identification and Management in the Internet of Things

Henceforth, users agreed on the necessity of continuous Internet connection independently of the place, the manner, and the time. Nowadays, several elite services are accessible by people over the Internet of Things (IoT), which is a heterogeneous n...

Identity Management System Model in the Internet of Things

This paper describes the identity management system (IdMS) by defining system and user requirements. Additionally, it introduces the IdMS concept that approaches the things identity management. Moreover, the paper deeply describes the IdMS features ...

Managing Asymmetric Information Effects in Decision-Making Productivity-Based Model

Making the correct decision requires the possession of sufficient information regarding each alternative possible solution. Nevertheless, the investigation of all possible solutions to select the best alternative is complex and expensive. This artic...

A Multi-Agent System for Course Timetable Generation

In the university, course scheduling and preparation for each semester can be defined as the process of determining what courses to offer, the number of sections needed for each course, assigning of a faculty member to teach each section, and alloca...

Impacts of information quality on decision-making

Prior investigations have pointed out that an understanding of the impacts of information quality is essential to the organisation's success. Nevertheless, few investigations have analysed the impacts of information quality in a business context. Th...

An Exception Management Model in Multi-Agents Systems

Multi-Agents Systems (MAS) are modern approaches that need an additional investigation to improve their reliability and adaptability levels. Exception management is one way to reach this goal and this paper is dedicated to this specific subject. The...

Data freshness evaluation in data integration systems

The availability of data in different datasources increases highly the demand on accessing this data in a uniform and generalised way, especially in decision making applications which require an exhaustive investigation and examination of the data. ...

INFORMATION QUALITY FRAMEWORK

This paper discusses a general, meaningful and repeated problem in information systems practice: under investment in the client information quality. Many organizations need precise financial models so as to initiate investments in their information ...

Particle swarm optimization of an extended Kalman filter for speed and rotor flux estimation of an induction motor drive

A novel method based on a combination of the extended Kalman filter with particle swarm optimization (PSO) to estimate the speed and rotor flux of an induction motor drive is presented. The proposed method will be performed in two steps. As a first ...

A Petri Net Based Multi-Agent System Behavioral Testing

In Multi-Agent System (MAS), developers concentrate on creating design models and evolving them, from higher level models to lower level models, in several steps. Considerable part of MAS implementations is automatically produced from the design mod...

Structured Acceptance Test Suite Generation Process for Multi-Agent System

In recent years, Agent-Oriented Software Engineering (AOSE) methodologies are proposed to develop complex distributed systems based upon the agent paradigm. The implementation for such systems has usually the form of Multi-Agent Systems (MAS). Testi...

Structured integration test suite generation process for multi-agent system

Problem statement: In recent years, Agent-Oriented Software Engineering (AOSE) methodologies are proposed to develop complex distributed systems based upon the agent paradigm. The implementation for such systems has usually the form of Multi-Agent S...

Structured system test suite generation process for multi-agent system

In recent years, Agent-Oriented Software Engineering (AOSE) methodologies are proposed to develop complex distributed systems based upon the agent paradigm. The implementation for such systems has usually the form of Multi-Agent Systems (MAS). MAS’t...

From graphical user interface to domain class diagram: a reverse engineering approach

Abstract The Graphical User Interfaces (GUIs) of software products are extensively used by researchers and practitioners in Software Engineering field. For Example, they are used for testing, measuring usability, and many other purposes. This paper ...

Fault detection and isolation in dynamic systems using statistical local approach and hybrid least squares algorithm

A fault detection and isolation (FDI) scheme for dynamic system proposed. This study deals with the design of discrete-time linear system using delta operator approach and the hybrid least squares (HLS) algorithm. A third residual generation based o...

Fault detection and isolation using hybrid parameter estimation and fuzzy logic residual evaluation

Fault diagnosis has become an issue of primary importance in modern process automation as it provides the prerequisites for the task of fault detection. The ability to detect the faults is essential to improve reliability and security of a complex...