Asymmetric Information Resolution (AIR) Models

There are three types of decision problems, (i) best outcome based, given external states are not controllable, (ii) best path, given states are known, and (iii) decision assist, given that an exact solution is not achievable, and reduce the complexity of the decision-making problem. The selection of the decision model is dependent on the type of context at issue. A theoretical structure is introduced to clearly distinguish best-outcome and best-path. However, the key to decision-making is a rigorous decision-context. Asymmetric Information Resolution (AIR) multiplayer model is introduced as a best path decision model. AIR models provide a new language and a new formalism for decision theory. These include three properties not found in current decision theory, perspective, barriers, and private information. Examples of how AIR models can be used in business, finance, and medicine are provided. AIR models enable the inference of private information about competitors, in a rigorous context, that would otherwise not be available, and vital for negotiations and strategy formulations. AIR models redefine business strategy and are used to analyze how Microsoft came to dominate the software industry with the remarkable finding that it is not the IBM deal that made it happen. AIR models work with qualitative, quantitative, and statistical distributions depending on the context used. Two brief examples of the use of quantitative information in AIR models are given. One is the use of AIR models to model financial statements (tested on about 50 companies across 4 industries), and the other to be proposed in medicine for diagnosis-assists. Finally, a short discussion is provided with respect to Artificial Intelligence.