Interpreting value creation model by case-based decision theory

Abstract

Service value is affected by providers, receivers, and/or its environment. To that, value creation model (Ueda et al. 2008) could provide us deep insights on an issue of how to synthesize value. In the meantime, traditional decision theory is not enough to address such a value issue. This is mainly because decision theory is constructed on a probability basis. It implies that the theory cannot deal with co-creating situations and is not intrinsically appropriate for analyzing service decision problems. On the other hand, Gilboa and Schmeidler (1995) proposed Case-based Decision Theory, which describes decision-making in a human’s inductive manner. In this paper, as a case of service decision problems, we discussed value creation model from the viewpoint of Case-based Decision Theory.