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Library/DP3 - Unambiguous source of the realized outcome

Design Principle

DP3 - Unambiguous source of the realized outcome

The source of the realized outcome must be unambiguous.

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Concept identity

design-knowledge/aligning-newsvendors-scoring-rules-dp3
Open concept record
Producer label
DP3
Source paper
Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
Timestamp
2026-08-05T00:00:00+00:00
Bundle path
design-knowledge/aligning-newsvendors-scoring-rules-dp3.md
aligning-newsvendors-scoring-rulesdesign-principleforecastingsmart-contractssupply-chaintrust

Design principle DP3: Unambiguous source of the realized outcome

The source of the realized outcome must be unambiguous. The solution relies on the concept of oracles to determine the realized outcome, i.e., data feeds that define the observed demand and, consequently, the payment the expert receives; given the crucial role these data feeds play, their source must be unambiguously defined so that both the expert and the newsvendor agree to use them.

Source paper

This design principle is proposed by Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules (Arthur Carvalho, Majid Karimi, 2021).

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1 Paper

papers/aligning-newsvendors-scoring-rules

Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules

The paper proposes a proper scoring rule, tailored to the newsvendor's decision problem, that rewards a forecasting expert for higher effort, and shows that coding the rule as a blockchain-based smart contract lets the newsvendor signal trustworthiness while inducing the expert to exert more effort.

aligning-newsvendors-scoring-rulesblockchaindesign-science-researchforecasting+3

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    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules

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    Source
    DP3 - Unambiguous source of the realized outcome
    Target
    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
    Link label
    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
    Status
    Resolved

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    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules

    Paper
    Source
    Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules
    Target
    DP3 - Unambiguous source of the realized outcome
    Link label
    Design principle DP3: Unambiguous source of the realized outcome
    Status
    Resolved

    Derived heading context: Design knowledge

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Design PrincipleSeed

Unambiguous source of the realized outcome

Concept identity

Concept ID
design-knowledge/aligning-newsvendors-scoring-rules-dp3
Producer label
DP3
Native type
design-principle

Description

The source of the realized outcome must be unambiguous. The solution relies on the concept of oracles to determine the realized outcome, i.e., data feeds that define the observed demand and, consequently, the payment the expert receives; given the crucial role these data feeds play, their source must be unambiguously defined so that both the expert and the newsvendor agree to use them.

DOI

https://doi.org/10.1016/j.dss.2021.113626

Tags

  • aligning-newsvendors-scoring-rules
  • design-principle
  • forecasting
  • smart-contracts
  • supply-chain
  • trust
Description and publication link from the library record.

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{
  "type": "design-principle",
  "title": "DP3 - Unambiguous source of the realized outcome",
  "description": "The source of the realized outcome must be unambiguous.",
  "resource": "https://doi.org/10.1016/j.dss.2021.113626",
  "source_paper": "Aligning the interests of newsvendors and forecasters through blockchain-based smart contracts and proper scoring rules",
  "label": "DP3",
  "tags": [
    "aligning-newsvendors-scoring-rules",
    "design-principle",
    "supply-chain",
    "forecasting",
    "smart-contracts",
    "trust"
  ]
}