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An Assessment of Decision Analysis

Author

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  • Ronald A. Howard

    (Stanford University, Stanford, California)

Abstract

Making decisions is what you do when you don't know what to do. Decision analysis is a process that enhances effective decision making by providing for both logical, systematic analysis and imaginative creativity. The procedure permits representing the decision-maker's information and preferences concerning the uncertain, complex, and dynamic features of the decision problem. As decision analysis has become more accepted and influential the ethical responsibility of decision analysts has increased. Analysts must be sensitive to assuming improper roles of advocacy and to participating in analyses whose means or ends are ethically repugnant. Criticisms of decision analysis are examined at three levels. Application criticisms question how much decision analysis improves actual decision making. Conceptual criticisms argue that the decomposition and recomposition of the decision analysis process may lend to a misshapen framing of the problem or to a suppression of “soft” or “fragile” considerations. Criticisms at the level of principle grant the effectiveness and comprehensiveness of decision analysis but express fear that the process may legitimize decisions otherwise questionable because of their end-state value system or their anthropocentric focus. Decision analysis is the most effective decision methodology yet advanced. Sensitivity to practical and ethical concerns about its use can only increase its effectiveness.

Suggested Citation

  • Ronald A. Howard, 1980. "An Assessment of Decision Analysis," Operations Research, INFORMS, vol. 28(1), pages 4-27, February.
  • Handle: RePEc:inm:oropre:v:28:y:1980:i:1:p:4-27
    DOI: 10.1287/opre.28.1.4
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    Citations

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    Cited by:

    1. Logan, Douglas M., 1990. "5.4. Decision analysis in engineering-economic modeling," Energy, Elsevier, vol. 15(7), pages 677-696.
    2. Ralph L. Keeney, 1984. "Ethics, Decision Analysis, and Public Risk," Risk Analysis, John Wiley & Sons, vol. 4(2), pages 117-129, June.
    3. Siebert, Johannes Ulrich & Kunz, Reinhard E. & Rolf, Philipp, 2021. "Effects of decision training on individuals’ decision-making proactivity," European Journal of Operational Research, Elsevier, vol. 294(1), pages 264-282.
    4. Fumie Yokota & Kimberly M. Thompson, 2004. "Value of Information Analysis in Environmental Health Risk Management Decisions: Past, Present, and Future," Risk Analysis, John Wiley & Sons, vol. 24(3), pages 635-650, June.
    5. Ricardo J. G. Mateus & João C. Bana e Costa & Pedro Verga Matos, 2017. "Supporting Multicriteria Group Decisions with MACBETH Tools: Selection of Sustainable Brownfield Redevelopment Actions," Group Decision and Negotiation, Springer, vol. 26(3), pages 495-521, May.
    6. Martin S. Schilling & Nadine Oeser & Cornelius Schaub, 2007. "How Effective Are Decision Analyses? Assessing Decision Process and Group Alignment Effects," Decision Analysis, INFORMS, vol. 4(4), pages 227-242, December.
    7. Lahtinen, Tuomas J. & Hämäläinen, Raimo P. & Jenytin, Cosmo, 2020. "On preference elicitation processes which mitigate the accumulation of biases in multi-criteria decision analysis," European Journal of Operational Research, Elsevier, vol. 282(1), pages 201-210.
    8. M. Elisabeth Paté-Cornell & Robin L. Dillon, 2006. "The Respective Roles of Risk and Decision Analyses in Decision Support," Decision Analysis, INFORMS, vol. 3(4), pages 220-232, December.
    9. Vincent T. Covello, 1987. "Decision Analysis and Risk Management Decision Making: Issues and Methods," Risk Analysis, John Wiley & Sons, vol. 7(2), pages 131-139, June.
    10. Minh Ha‐Duong & Elizabeth A. Casman & M. Granger Morgan, 2004. "Bounding Poorly Characterized Risks: A Lung Cancer Example," Risk Analysis, John Wiley & Sons, vol. 24(5), pages 1071-1083, October.

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