Polarization in the Reaction to Health‐Risk Information: A Question of Social Position?

Dissemination of risk information is ubiquitous in contemporary society. We explore how individuals react in everyday life to health-risk information, based on what they report in personal interviews. Health-risk information was without exception recognized as unstable and inconsistent. This conformity, however, did not extend to the narratives regarding how health-risk information should be handled. Two opposite positions (ideal-typical strategies) are presented. Either you tend to process and evaluate new information or you tend to ignore it as a whole. Our attempt to reveal the underlying rationality in these two very different approaches involved the exploration of three different avenues of interpretation and brings together two scientific paradigms--economics and sociology--that provide the framework for our analysis. First, we suggest that a greater long-term experience of explicit choice implies that this kind of action becomes more natural and less resource consuming, whereas a reliance on habits in daily life--a natural adjustment to a lack of resources--makes it is more costly to bother about new information. Second, with fewer resources in the short run, fewer opportunities to mitigate bad outcomes, and greater exposure to social and material risks, one is less likely to devote resources to deal with health-risk information. Third, there are several possible links between a low propensity to take account of risk information and a high relative importance of genuine uncertainty in one's life. These theoretical perspectives provide a viable set of hypotheses regarding mechanisms that may contribute to social differences in the response to health-risk information.     

A Value Measure for Public‐Sector Enterprise Risk Management: A TSA Case Study

This article presents a public value measure that can be used to aid executives in the public sector to better assess policy decisions and maximize value to the American people. Using Transportation Security Administration (TSA) programs as an example, we first identify the basic components of public value. We then propose a public value account to quantify the outcomes of various risk scenarios, and we determine the certain equivalent of several important TSA programs. We illustrate how this proposed measure can quantify the effects of two main challenges that government organizations face when conducting enterprise risk management: (1) short‐term versus long‐term incentives and (2) avoiding potential negative consequences even if they occur with low probability. Finally, we illustrate how this measure enables the use of various tools from decision analysis to be applied in government settings, such as stochastic dominance arguments and certain equivalent calculations. Regarding the TSA case study, our analysis demonstrates the value of continued expansion of the TSA trusted traveler initiative and increasing the background vetting for passengers who are afforded expedited security screening.     

Quantitative Comparison of Approximate Solution Sets for Bi‐criteria Optimization Problems*

We present the Integrated Preference Functional (IPF) for comparing the quality of proposed sets of near‐pareto‐optimal solutions to bi‐criteria optimization problems. Evaluating the quality of such solution sets is one of the key issues in developing and comparing heuristics for multiple objective combinatorial optimization problems. The IPF is a set functional that, given a weight density function provided by a decision maker and a discrete set of solutions for a particular problem, assigns a numerical value to that solution set. This value can be used to compare the quality of different sets of solutions, and therefore provides a robust, quantitative approach for comparing different heuristic, a posteriori solution procedures for difficult multiple objective optimization problems. We provide specific examples of decision maker preference functions and illustrate the calculation of the resulting IPF for specific solution sets and a simple family of combined objectives.     

Workload Control and Order Release: A Lean Solution for Make‐to‐Order Companies

Protecting throughput from variance is the key to achieving lean. Workload control (WLC) accomplishes this in complex make‐to‐order job shops by controlling lead times, capacity, and work‐in‐process (WIP). However, the concept has been dismissed by many authors who believe its order release mechanism reduces the effectiveness of shop floor dispatching and increases work center idleness, thereby also increasing job tardiness results. We show that these problems have been overcome. A WLC order release method known as “LUMS OR” (Lancaster University Management School order release) combines continuous with periodic release, allowing the release of work to be triggered between periodic releases if a work center is starving. This paper refines the method based on the literature (creating “LUMS COR” [Lancaster University Management School corrected order release]) before comparing its performance against the best‐performing purely periodic and continuous release rules across a range of flow directions, from the pure job shop to the general flow shop. Results demonstrate that LUMS COR and the continuous WLC release methods consistently outperform purely periodic release and Constant WIP. LUMS COR is considered the best solution in practice due to its excellent performance and ease of implementation. Findings have significant implications for research and practice: throughput times and job tardiness results can be improved simultaneously and order release and dispatching rules can complement each other. Thus, WLC represents an effective means of implementing lean principles in a make‐to‐order context.     

多元化经营策略批判——论竞争风险

多元化投资可以分散非系统风险这一命题对证券投资者适用,但对于企业的经营性投资而言,虽然多元化也可以分散某些非系统风险,但是同时也会增加企业面临的竞争风险.与此同时,多元化经营所涉及的不仅是风险问题.所以,企业在采用多元化策略时,就应该慎重,全面权衡自身的经营意图与多元化的有关利弊.     

Why Rules for Risk Communication Are Not Enough: A Problem-Solving Approach to Risk Communication

Current work on risk communication offers practitioners helpful guidelines and rules such as "speak clearly" and "speak with compassion." While important, these guidelines have limitations. They offer practitioners and scholars little aid in determining why a communication encounter failed. Also, they do not help practitioners anticipate and overcome likely difficulties in future risk situations, nor can they help locate information about how to reduce these difficulties. To overcome the limitations of rule-based approaches to risk communication, this paper describes a diagnostic or problem-solving approach. This approach maintains that instead of rules, people need bases for anticipating likely obstacles to effective communication and selecting approaches that reduce these difficulties. Research on building trust, increasing awareness, deepening comprehension, gaining agreement, and motivating action is available in fields such as communication, educational psychology, science education, marketing, counseling, negotiation, and disaster response. This paper describes a framework that assists scholars and practitioners in: (a) identifying communication goals; (b) determining principal obstacles to those goals; and (c) selecting research-based methods for overcoming or minimizing these difficulties and achieving communication objectives.     

A Practical Two‐Step Method for Testing Moment Inequalities

This paper considers the problem of testing a finite number of moment inequalities. We propose a two‐step approach. In the first step, a confidence region for the moments is constructed. In the second step, this set is used to provide information about which moments are “negative.” A Bonferonni‐type correction is used to account for the fact that, with some probability, the moments may not lie in the confidence region. It is shown that the test controls size uniformly over a large class of distributions for the observed data. An important feature of the proposal is that it remains computationally feasible, even when the number of moments is large. The finite‐sample properties of the procedure are examined via a simulation study, which demonstrates, among other things, that the proposal remains competitive with existing procedures while being computationally more attractive.     

Value‐Driven Creation of Functionality in Software Projects: Optimal Sequencing and Reuse

We study the problem of optimally sequencing the creation of elements in a software project to optimize a time‐weighted value objective. As elements are created, certain parts of the system (referred to as “groups”) become functional and provide value, even though the entire system has not been completed. The main tradeoff in the sequencing problem arises from elements that belong to multiple groups. On the one hand, creating groups with common elements early in the project reduces the effort required to build later functionality that uses these elements. On the other hand, the early creation of such groups can delay the release of some critical functionality. We formulate the element sequencing problem and propose a heuristic to solve it. This heuristic is compared against a lower bound developed for the problem. Next, we study a more general version of the element sequencing problem in which an element requires some effort to be made reusable. When a reusable element is used in another group, some more effort is needed to specialize the element to work as desired in that group. We study reuse decisions under a weighted completion time objective (i.e., the sum of the completion time of each group weighted by its value is minimized), and show how these decisions differ from those under a traditional makespan objective (i.e., only the final completion time of the project is minimized). A variety of analytical and numerical results are presented. The model is also implemented on data obtained from a real software project. A key finding of this work is that the optimal effort on reuse is never increased (typically lowered) when a weighted completion time objective is used. This finding has implications for managing reuse in projects in which user value influences the order in which functionality is created.     

The Risks of "Putting the Numbers in Context": A Cautionary Tale

Despite the warnings of risk communication specialists, members of the technical community often urge that technological risks should be "put in context" by comparisons against risks that are more familiar. Little quantitative evidence is available on the actual behavioral consequences of such risk comparison efforts. In the present study, subjects were presented with two types of information about a hazardous waste incinerator–a simplified statistical summary and a comparison of incinerator risks against the risks of smoking. Statistical information led to a modest increase in the reported willingness to vote in favor of the incinerator in a community referendum, but the comparison against cigarettes led to a slight decrease in support; the difference between the two messages is statistically significant ( p <.001). In combination with other results, this study's findings suggest that an implicit assumption of risk comparisons is in error: Opposition to controversial technologies may have little to do with citizens' levels of information about technology, having more to do with citizens' levels of trust in governmental and industrial actors.     

Enhancing Self‐Protective Behavior: Efficacy Beliefs and Peer Feedback in Risk Communication

In times of a high‐impact safety incident citizens may have a variety of sources available to help them cope with the situation. This research focuses on the interplay of efficacy information in risk communication messages and peer feedback, such as responses on social network sites (SNSs) in the context of a high‐impact risk on the intention to engage in self‐protective behavior. The study pitted high and low efficacy information messages against supporting and opposing peer feedback (N = 242). Results show a significant interaction effect between efficacy information in a news article and peer feedback from SNS messages on both the intention to engage in self‐protective behavior and levels of involvement. Participants who received the article with more efficacy information and also received supportive peer feedback via SNS messages were more likely to express higher levels of involvement and greater intentions to engage in protective behavior. When confronted with a low efficacious news article, the effect of peer feedback on these two variables was significantly stronger. Finally, implications for theory and government risk communication are discussed.     

Measuring Modularity‐Based Manufacturing Practices and Their Impact on Mass Customization Capability: A Customer‐Driven Perspective

As uncertainty in markets and technology intensifies, more companies are adopting modular product and process architectures to cope with increasing demands for individually customized products. Modularity‐based manufacturing is the application of unit standardization or substitution principles to create modular components and processes that can be configured into a wide range of end products to meet specific customer needs. This study defines modularity‐based manufacturing practices (MBMP), develops a valid and reliable instrument to measure MBMP, builds a framework that relates customer closeness, MBMP, and mass customization capability, and tests structural relationships within this framework using LISREL. Based on 303 responses from members of the Society of Manufacturing Engineers, statistically significant and positive relationships were found among customer closeness, modularity‐based manufacturing practices, and mass customization capability. Managerial implications of the empirical findings of this study and future research directions are also discussed.     

Testing and Characterizing Properties of Nonadditive Measures Through Violations of the Sure‐Thing Principle

In expected utility theory, risk attitudes are modeled entirely in terms of utility. In the rank‐dependent theories, a new dimension is added: chance attitude, modeled in terms of nonadditive measures or nonlinear probability transformations that are independent of utility. Most empirical studies of chance attitude assume probabilities given and adopt parametric fitting for estimating the probability transformation. Only a few qualitative conditions have been proposed or tested as yet, usually quasi‐concavity or quasi‐convexity in the case of given probabilities. This paper presents a general method of studying qualitative properties of chance attitude such as optimism, pessimism, and the “inverse‐S shape” pattern, both for risk and for uncertainty. These qualitative properties can be characterized by permitting appropriate, relatively simple, violations of the sure‐thing principle. In particular, this paper solves a hitherto open problem: the preference axiomatization of convex (“pessimistic” or “uncertainty averse”) nonadditive measures under uncertainty. The axioms of this paper preserve the central feature of rank‐dependent theories, i.e. the separation of chance attitude and utility.     

Perception of Risks From Electromagnetic Fields: A Psychometric Evaluation of a Risk-Communication Approach

Potential health risks from exposure to power-frequency electromagnetic fields (EMF) have become an issue of significant public concern. This study evaluates a brochure designed to communicate EMF health risks from a scientific perspective. The study utilized a pretest-posttest design in which respondents judged various sources of EMF (and other) health and safety risks, both before reading the brochure and after. Respondents assessed risks on dimensions similar to those utilized in previous studies of risk perception. In addition, detailed ratings were made that probed respondents' beliefs about the possible causal effects of EMF exposure. The findings suggest that naive beliefs about the potential of EMF exposure to cause harm were highly influenced by specific content elements of the brochure. The implications for using risk-communication approaches based on communicating scientific uncertainty are discussed.     

Trust in Risk Management: A Model‐Based Review of Empirical Research

This review of studies of trust in risk management was designed, in part, to examine the relations between the reviewed research and the consensus model of trust that has recently emerged in other fields of study. The review begins by briefly elaborating the consensus views on the dimensionality and function of trust. It then describes the various models of trust that have been developed in the field of risk management, comparing them with the consensus approach. The findings of previous reviews are outlined, followed by a delineation of the open questions addressed by the present review, the method used, and the results. Finally, the findings of the review are discussed in relation to the important issue of trust asymmetry, the role of trust in risk management, and directions for future research. The consensus model specifies two conceptualizations of trust, each linked to particular types of antecedents. Relational trust, which is called trust in this review, is based on the relations between the trusting person and the other. Calculative trust, which is called confidence, is based on past behavior of the other and/or on constraints on future behavior. Results of this review showed that most studies of trust in risk management, while exploring matters of particular concern to the risk management community, were at least in part consistent with the consensus model. The review concludes by urging greater integration between the concerns of the former and the insights of the latter.     

Insights into Flood‐Coping Appraisals of Protection Motivation Theory: Empirical Evidence from Germany and France

Protection motivation theory (PMT) has become a popular theory to explain the risk‐reducing behavior of residents against natural hazards. PMT captures the two main cognitive processes that individuals undergo when faced with a threat, namely, threat appraisal and coping appraisal. The latter describes the evaluation of possible response measures that may reduce or avert the perceived threat. Although the coping appraisal component of PMT was found to be a better predictor of protective intentions and behavior, little is known about the factors that influence individuals’ coping appraisals of natural hazards. More insight into flood‐coping appraisals of PMT, therefore, are needed to better understand the decision‐making process of individuals and to develop effective risk communication strategies. This study presents the results of two surveys among more than 1,600 flood‐prone households in Germany and France. Five hypotheses were tested using multivariate statistics regarding factors related to flood‐coping appraisals, which were derived from the PMT framework, related literature, and the literature on social vulnerability. We found that socioeconomic characteristics alone are not sufficient to explain flood‐coping appraisals. Particularly, observational learning from the social environment, such as friends and neighbors, is positively related to flood‐coping appraisals. This suggests that social norms and networks play an important role in flood‐preparedness decisions. Providing risk and coping information can also have a positive effect. Given the strong positive influence of the social environment on flood‐coping appraisals, future research should investigate how risk communication can be enhanced by making use of the observed social norms and network effects.     

基于多空交易者模型的股改对市场有效性影响的检验

本文从市场价格是由多空交易者相互作用所形成的观点出发,构建了多空交易者模型,将市场相对有效性概念作为实证检验的理论基础,运用我国股票市场数据,检验了股权分置改革对我国股票市场处理新信息效率的影响,结果显示股权分置改革改善了市场运行效率,使我国市场相对有效性得到提高。但结果也表明当前我国市场效率仍不足,需进一步推进相关制度建设来提高我国市场处理信息的效率。     

Risk Characterization and the Weight of Evidence: Adapting Gatekeeping Concepts from the Courts

Risk characterization objectives include evaluating the weight of evidence underlying risk determinations, communicating that evaluation to nonexperts, guiding risk assessors to achieve consistency, and preserving deference for those reasonable expert judgments inherent in any risk determination. Similar objectives are shared by American courts that face the gatekeeping task of screening scientific evidence before it is presented to nonexpert factfinders, such as juries. This article surveys the judicial gatekeeping concepts of relevance, evidentiary reliability, legal sufficiency, presumptions, and standards of proof (particularly, preponderance of the evidence). It examines recent court decisions that have applied these concepts to the kinds of scientific information common in risk assessments, and suggests how to adapt these gatekeeping concepts for use in weight-of-evidence characterization. If we can develop and adopt a neutral framework for characterizing the weight of evidence underlying risk assessments, it might help clarify not only the current debate over risk characterization and risk management, but also the drafting of treaty provisions, such as those invoking the Precautionary Principle of international environmental law.     

Quality of Service Based Pricing Schemes for Content Sharing in Peer‐to‐Peer Networks

In this paper, we study quality‐of‐service (QoS) based pricing schemes that serve as incentive mechanisms to induce sharing behaviors in Peer‐to‐Peer (P2P) networks. We incorporate operational QoS metrics into users’ utility functions and demonstrate how they affect individual users’ content sharing decisions. Using a game‐theoretic model, our study reveals how organizations respond to the changes of operational QoS metrics in their design of pricing schemes for various business objectives at different stages of network evolution. Our results show that a higher upload capacity can foster rational sharing to start when the network is small; however, it also discourages sharing behaviors when the network becomes large. In order to induce a socially optimal behavior, a pricing scheme will not charge users for requesting content while compensating them for sharing content. Such compensation is found to increase faster with the network size when the network is large. In order to maximize the profit of a monopolistic provider, however, a pricing scheme will charge content requests with a positive price while providing less compensation to sharing users compared to the socially optimal scheme. When the network size is small, such compensation can be even negative, which implies that a monopolistic provider discourages content sharing when the network is small, but encourages it when the network becomes larger. In addition, we find that more information about peer upload capacity discourages peers to share.