Constructing New Representations and the Implications for Decision Making Theory: Learning from Archimedes

Abstract

In general decision making theory modeling inferential reasoning, there is an information asymmetry that arises from the fact that the universe of possibles, which is assumed to be stable, is not formalized as conditional in operative rules. Standing as a classic counter‐example is an innovational model (the Archimedes thought experiment) in which the universe of discourse, that is, the reference universe, must be reframed and extended. Here, new theoretical foundations are put forth: (1) a formalized concept of a reference universe; (2) a two‐fold rationality, with or without an excluded middle, to operate within a reference universe; or (3) a non‐reflexive identity entailed in a reframing process, adding a new dimension to the existing knowledge base. This opens outlooks for modeling a process whereby new representations for decision making can be constructed. Moreover, it is a process that constitutes a unique vantage point from which to observe innovative situations and to contemplate the link to paradox theory in management research.

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