Abstract
The identification of regularities in time-dependent functional structures leads to turn patterns, observed according to a given time resolution, into functional attractors on which it is first possible to found any complex system. Rationality is introduced under the form of probabilities for functions to make up a given attractor beyond the first rough descriptive pattern. These physically characterized attractors are the medium enabling the definition of value as an extension of the Prospect Theory (PT) overall utility, considering that the actions produced by their functions are outcomes which are modulated by PT psychological value functions and an operational value appears naturally as an optimization taking account of diminishing sensitivity to action efficiency. Nevertheless, this diminishing sensitivity, when applied to negative actions, introduces also a bias of negative externalities underestimation. An attractor-based complex system evolution in an industrial context is described according to Manufacturing Readiness Level and to the main milestones of an industrial project, corresponding to singular points of maturity expressed in terms of probability—or decision—weighting, up to the system release to the market. So, a maturity assessment heuristics is proposed both for the system development and for its marketing. The supply and demand law is established, highlighting that the ideal case of a purely mature economy can be a good approximation reducing the complexity of the exchanges analysis. Equilibria are discussed as depending on an initial point from which the usual Gaussian probability distribution and a speculative weight qualify equilibrium.
Similar content being viewed by others
References
Chauvet, E. (2006). The evolution of functional systems through the generalized uncertainty and Nash equilibria. In American Institute of Physics Conference Proceedings AIP CP, Vol. 839, (pp. 579–590).
Chauvet, E. (2013). Value, a way out of uncertainties: A physical model for ethics and freedoms. Journal of Business Ethics, 113, 395–413.
Department of Defense. (2008). Department of Defense Instruction 5000.02—Operation of the defense acquisition system. USA: DoD.
Department of Defense. (2011). Manufacturing readiness level deskbook. USA: DoD.
Kahneman, D. (2011). Thinking fast and slow. London: Penguin Books.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47, 263–291.
Rényi, A. (1966). Calcul des Probabilités. Paris: Dunod.
Silver, N. (2012). The signal and the noise. New York, NY: The Penguin Press, Penguin Group (USA) Inc.
Taleb, N. (2007). The Black Swan: The impact of the highly improbable. New York, NY: Random House.
Tversky, A., & Kahneman, D. (1992). Advances in prospect theory: Cumulative representation of uncertainty. Journal of Risk and Uncertainty, 5(4), 297–323.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Chauvet, E. Industrialization Value, Market Maturity and Ethics. J Bus Ethics 128, 183–195 (2015). https://doi.org/10.1007/s10551-014-2086-y
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-014-2086-y