Unusual Japanese Decision-making: Markov Process of Decision-making
Unusual Japanese Decision-making: Markov Process of Decision-making

Summary/Abstract: There is not enough research on decision-making and management process of organizations that do not make a profit. Economists should include healthy companies, as well as sick ones, the same way doctors do. Decisions that are rational or legitimate to the point of view of the parties, but which are incomprehensible to the point of view of the third party, can occur in any era, any country or culture. Although many studies in social psychology and management have been done on abnormal decision-making to save such organizations, abnormal decision-making processes that occur in Japan are different from those studied in Europe and the United States. This is due to institutional or cultural background. It is characterized by not knowing who is responsible, not knowing what they are doing for, decisions that are not for the individual benefit of the decision maker or of course not for the organizational goals. Moreover, the decision is inconsistent. The purpose of this paper is to model this aspect. The Escalation Model shows the rigidity of decision-making arising from the sense of responsibility of decision-makers, while the university case is based on the rigidity of decision-making arising from the irresponsibility of decision-making.

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