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An Application of Behavioral Game Theory in Equilibrium Analysis of Concurrent Product-Development Projects

[+] Author Affiliations
Shun Takai

Northern Illinois University, DeKalb, IL

Paper No. DETC2014-34175, pp. V004T06A023; 13 pages
doi:10.1115/DETC2014-34175
From:
  • ASME 2014 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference
  • Volume 4: 19th Design for Manufacturing and the Life Cycle Conference; 8th International Conference on Micro- and Nanosystems
  • Buffalo, New York, USA, August 17–20, 2014
  • Conference Sponsors: Design Engineering Division, Computers and Information in Engineering Division
  • ISBN: 978-0-7918-4635-3
  • Copyright © 2014 by ASME

abstract

This paper analyzes design equilibrium in a concurrent product-development project using the results from behavioral game theory. In this study, a project consists of a team of three engineers who represent three product-development stages: product design, material selection, and process selection. Product-development tasks are globally distributed, and engineers are allowed to independently make product-development decisions (i.e., non-cooperative design). In addition, the engineers are evaluated according to the outcomes of both individual and team product-development tasks. When multiple design equilibria exist, but a dominant design equilibrium does not, the past behavioral-game-theory studies indicate that design equilibrium may be reached under two conditions. In the first condition, one engineer is allowed to announce his/her intended alternative even though he/she does not need to actually choose the announced alternative. In the second condition, one engineer is selected to make his/her choice first but the other engineers do not know what that choice is. Sensitivity analysis indicates that a wide variety of design equilibria will emerge depending on how engineers are evaluated.

Copyright © 2014 by ASME

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