Nash equilibria in multi-agent motor interactions.

Social interactions in classic cognitive games like the ultimatum game or the prisoner's dilemma typically lead to Nash equilibria when multiple competitive decision makers with perfect knowledge select optimal strategies. However, in evolutionary game theory it has been shown that Nash equilibria can also arise as attractors in dynamical systems that can describe, for example, the population dynamics of microorganisms. Similar to such evolutionary dynamics, we find that Nash equilibria arise naturally in motor interactions in which players vie for control and try to minimize effort. When confronted with sensorimotor interaction tasks that correspond to the classical prisoner's dilemma and the rope-pulling game, two-player motor interactions led predominantly to Nash solutions. In contrast, when a single player took both roles, playing the sensorimotor game bimanually, cooperative solutions were found. Our methodology opens up a new avenue for the study of human motor interactions within a game theoretic framework, suggesting that the coupling of motor systems can lead to game theoretic solutions.

Developing a framework for make-or-buy decisions

The make-or-buy question represents a fundamental dilemma faced by many companies. Companies have finite resources and cannot always afford to have all manufacturing technologies in-house. This has resulted in an increasing awareness of the importance of make-or-buy decisions. This paper reports on the development of a make-or-buy framework to address the make-or-buy decision for either a specific individual part or family of parts. Firstly, a literature review of the principal make-or-buy approaches is discussed. Secondly, the development of a make-or-buy framework is described and the framework is explained and illustrated using case studies. Thirdly, the operationalisation of the framework is outlined. The paper concludes with a discussion of its contribution to both the academic understanding of the subject, and the improvement of industrial practice.

A comparison of four sustainable manufacturing strategies

Effective use of materials is one possible component of a sustainable manufacturing strategy. There are many such strategies proposed in the literature and used in practice, with confusion over what they are, what the differences among them may be and how they can be used by practitioners in design and manufacture to improve the sustainability of their product and processes. This paper reviews the literature on sustainable manufacturing strategies that deliver improved material performance. Four primary strategies were found: waste minimisation; material efficiency; resource efficiency; and eco-efficiency. The literature was analysed to determine the key characteristics of these sustainable manufacturing strategies and 17 characteristics were found. The four strategies were then compared and contrasted against all the characteristics. While current literature often uses these strategy titles in a confusing, occasionally inter-changeable manner, this study attempts to create clear separation between them. Definition, scope and practicality of measurement are shown to be key characteristics that impact upon the ability of manufacturing companies to make effective use of the proposed strategy. It is observed that the most actionable strategies may not include all of the dimensions of interest to a manufacturer wishing to become more sustainable, creating a dilemma between ease of implementation and breadth of impact. © 2008 Taylor & Francis.

Total acquisition cost of overseas outsourcing/sourcing: A framework and a case study

Purpose - The purpose of this paper is to develop a framework of total acquisition cost of overseas outsourcing/sourcing in manufacturing industry. This framework contains categorized cost items that may occur during the overseas outsourcing/sourcing process. The framework was tested by a case study to establish both its feasibility and usability. Design/methodology/approach - First, interviews were carried out with practitioners who have the experience of overseas outsourcing/sourcing in order to obtain inputs from industry. The framework was then built up based on combined inputs from literature and from practitioners. Finally, the framework was tested by a case study in a multinational high-tech manufacturer to establish both its feasibility and usability. Findings - A practical barrier for implementing this framework is shortage of information. The predictability of the cost items in the framework varies. How to deal with the trade off between accuracy and applicability is a problem needed to be solved in the future research. Originality/value - There are always limitations to the generalizations that can be made from just one case. However, despite these limitations, this case study is believed to have shown the general requirement of modeling the uncertainty and dealing with the dilemma between accuracy and applicability in practice. © Emerald Group Publishing Limited.

A reason for unreason: returns-based beliefs in game theory

Players cooperate in experiments more than game theory would predict. We introduce the ‘returns-based beliefs’ approach: the expected returns of a particular strategy in proportion to total expected returns of all strategies. Using a decision analytic solution concept, Luce’s (1959) probabilistic choice model, and ‘hyperpriors’ for ambiguity in players’ cooperability, our approach explains empirical observations in various classes of games including the Prisoner’s and Traveler’s Dilemmas. Testing the closeness of fit of our model on Selten and Chmura (2008) data for completely mixed 2 × 2 games shows that with loss aversion, returns-based beliefs explain the data better than other equilibrium concepts.

The energy required to produce materials: constraints on energy-intensity improvements, parameters of demand.

In this paper, we review the energy requirements to make materials on a global scale by focusing on the five construction materials that dominate energy used in material production: steel, cement, paper, plastics and aluminium. We then estimate the possibility of reducing absolute material production energy by half, while doubling production from the present to 2050. The goal therefore is a 75 per cent reduction in energy intensity. Four technology-based strategies are investigated, regardless of cost: (i) widespread application of best available technology (BAT), (ii) BAT to cutting-edge technologies, (iii) aggressive recycling and finally, and (iv) significant improvements in recycling technologies. Taken together, these aggressive strategies could produce impressive gains, of the order of a 50-56 per cent reduction in energy intensity, but this is still short of our goal of a 75 per cent reduction. Ultimately, we face fundamental thermodynamic as well as practical constraints on our ability to improve the energy intensity of material production. A strategy to reduce demand by providing material services with less material (called 'material efficiency') is outlined as an approach to solving this dilemma.

Cortical substrates for exploratory decisions in humans.

Decision making in an uncertain environment poses a conflict between the opposing demands of gathering and exploiting information. In a classic illustration of this 'exploration-exploitation' dilemma, a gambler choosing between multiple slot machines balances the desire to select what seems, on the basis of accumulated experience, the richest option, against the desire to choose a less familiar option that might turn out more advantageous (and thereby provide information for improving future decisions). Far from representing idle curiosity, such exploration is often critical for organisms to discover how best to harvest resources such as food and water. In appetitive choice, substantial experimental evidence, underpinned by computational reinforcement learning (RL) theory, indicates that a dopaminergic, striatal and medial prefrontal network mediates learning to exploit. In contrast, although exploration has been well studied from both theoretical and ethological perspectives, its neural substrates are much less clear. Here we show, in a gambling task, that human subjects' choices can be characterized by a computationally well-regarded strategy for addressing the explore/exploit dilemma. Furthermore, using this characterization to classify decisions as exploratory or exploitative, we employ functional magnetic resonance imaging to show that the frontopolar cortex and intraparietal sulcus are preferentially active during exploratory decisions. In contrast, regions of striatum and ventromedial prefrontal cortex exhibit activity characteristic of an involvement in value-based exploitative decision making. The results suggest a model of action selection under uncertainty that involves switching between exploratory and exploitative behavioural modes, and provide a computationally precise characterization of the contribution of key decision-related brain systems to each of these functions.