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Industrialization Value, Market Maturity and Ethics

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  • Emmanuel Chauvet

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. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Emmanuel Chauvet, 2015. "Industrialization Value, Market Maturity and Ethics," Journal of Business Ethics, Springer, vol. 128(1), pages 183-195, April.
    • Handle: RePEc:kap:jbuset:v:128:y:2015:i:1:p:183-195
    DOI: 10.1007/s10551-014-2086-y
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    References listed on IDEAS

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    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
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    Cited by:

    1. Emmanuel Chauvet, 2018. "Growth, Industrial Externality, Prospect Dynamics, and Well-being on Markets," Papers 1812.09302, arXiv.org, revised Jul 2020.

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