This study explores how agents would make decisions responding to control mechanism in contractual relationship of their firm. Focusing on agent's averse behavior against control, system dynamics model for agent's opportunistic behavior is developed in view of agent theory and control theory. This SD model shows that control mechanism by contracts doesn't always play a positive role on corporate decision-making process and Control, especially in the over-controlled contracts, often makes a paradox accelerating agent's opportunistic behavior unexpectedly. This paradox provides us both theoretical and practical implications for the relationship between control mechanism and autonomous behavior for sustainable corporate management.

Analyzers adopt a variety of techniques in analyzing public policy. Based on the results of exploration, they explain problems and suggest prescriptions such as policy alternatives. By doing so, however, they have different degree of confidence in their own results according to what techniques they adopt. This study explores whether system dynamics apporach gives analyzers more confidence on their own simulation results than other approaches do. This study designed an experiment. Three research teams are organized. Each of them applies different analytic techniques on the same policy issue, i.e., introduction of transportation tax. It flnds that researchers using S,D. simulation technique are most confident on what they predict, while researchers adopting survey techniques show moderate degree of confidence on their results. Researchers using regression are least confident.

Demand-side Management can be defined as'any utility activity aimed at modifying customers' use of energy to produce desired changes in the utility's load shape'. Customers benefit by being able to control energy costs and improve quality of life and become more productive. Utilities benefit from DSM's value as a resource that enhances asset utilization and reduces both fuel costs and environmental emissions. The scope of DSM includes load management through rate schedules and conservation by improving energy effciency and using electricity consumption effectively. This paper study the DSM resource evaluation and customer behavior analysis todesign the DSM Program plan in response to customer needs. We develop basic system dynamics model to analysis the customer behavior based on a survey research. The DSM Program participants in the Hi- efficiency Inverter, Electric motor and efficient lighting applicancies operating by Conservation program 2002 become the survey objects. DSM resource evaluation evaluate firstt the distribution potentialities of each machine and then forecast the degree of diffusion. We apply the system dynamic approach to simulate the dynamic DSM market situation at the domestic beginning. This model will give the energy Planner the opportunity to create different scenarios for DSM program planning. Also it will lead to increased understanding of the dynamic DSM market

This paper explores the relationship between technological characteristics within process innovation and selection of the firms of different organizational forms in the evolution of an industry. For this purpose, this paper develops a simulation model for industrial change that replicates dynamic competition for process innovation. The simulation analysis found the following causal relationship. First, the stronger innovation impact in terms of productivity jump tends to enlarge the productivity difference among the incumbent firms and increase the speed of productivity catch-up by the large diversified firms, Second, the possibility of entry, and eventual dominance by the large diversified firms increase when the innovation-productivity linkage is stronger and there is less cumulativeness in productivity determination. These results imply that technological characteristics are important factors that have influence on whether or not the large diversified firms can enter and succeed in an industry.

Building trust assurance particularly in case of commercial practices in cyber space without physical contact is a very complex task to tackle. Several factors are interrelated in not necessarily technical but also societal dimensions over the entire process of e-commerce firm ex-ante through ex-post transactions. This paper attempts first to brief the substance of e-trust and examine the natuure of its complexity by using system dynamics simulation technique, followed by its current address and the future directions to move. A framework of 3 x 3 matrixes is deviaed and the key issues of e-trust are mapped into cross-cells of the table. The paper also includes some possible suggestions on the matter of trust assurance especially for B2C and B2B in policy wise and organizational perspective from the context of international collaboration.

Many countries in the North East Asia are competing with each other in order to become a centre of international logistics activities. The competition to become a hub port in Far East region is now fierce. The anticipated investments on improving port facilities and attracting the mega carriers are immense for all the ports in the region and the extent of the effort could cripple the local ports and region's economy given the limited financial resources. It is, however, impossible to avoid the disastrous possibility that the massive investments could be channeled into the port, which will never become a hub port, as no port is ready to currently admit defeat and settle as a small regional port. In an attempt to minimise such disastrous waste of resources, ports need to verify the eligibility of their own. This paper tests a system dynamics model using the Port of Busan to understand and illustrate the principle guideline of investment decision making for ports.

Feedback loop dominance is a key concept to understand structural driving forces of system behavior. In this paper, we propose two kinds of shifts in dominant feedback loops: continuous shifts (CS) and discrete shifts (DS). With the help of questionnaires, we verified three hypotheses regarding cognitive biases in perceiving the shifts in dominant feedback loops: 1) failure in perceiving continuous shifts, 2) tendency of decision making based on discrete shifts, and 3) different perception on the dominant feedback loops between level variables and rate variables. We discussed the implication of these cognitive biases on time delay and timing strategy in decision-making processes.