GIS-based multicriteria analysis as decision support in flood risk management

In this report we develop a GIS-based multicriteria flood risk assessment and mapping approach. This approach has the ability a) to consider also flood risks which are not measured in monetary terms, b) to show the spatial distribution of these multiple risks and c) to deal with uncertainties in criteria values and to show their influence on the overall assessment. It can furthermore be used to show the spatial distribution of the effects of risk reduction measures. The approach is tested for a pilot study at the River Mulde in Saxony, Germany. Therefore, a GISdataset of economic as well as social and environmental risk criteria is built up. Two multicriteria decision rules, a disjunctive approach and an additive weighting approach are used to come to an overall assessment and mapping of flood risk in the area. Both the risk calculation and mapping of single criteria as well as the multicriteria analysis are supported by a software tool (FloodCalc) which was developed for this task. --

Traveller Behaviour: Decision making in an unpredictable world

This paper discusses the nature and consequences of uncertainty in transport systems. Drawing on work from a number of fields, it addresses travellers’ abilities to predict variable phenomena, their perception of uncertainty, their attitude to risk and the various strategies they might adopt in response to uncertainty. It is argued that despite the increased interest in the representation of uncertainty in transport systems, most models treat uncertainty as a purely statistical issue and ignore the psychological aspects of response to uncertainty. The principle theories and models currently used to predict travellers’ response to uncertainty are presented and number of alternative modelling approaches are outlined. It is argued that the current generation of predictive models do not provide an adequate basis for forecasting response to changes in the degree of uncertainty or for predicting the likely effect of providing additional information. A number of alternative modelling approaches are identified to deal with travellers’ acquisition of information, the definition of their choice set and their choice between the available options. The use of heuristic approaches is recommended as an alternative to more conventional probabilistic methods

Ambiguity and the economic rhetoric of climate change

This paper examines climate-change benefit-cost analysis in the presence of scientific uncertainty in the form of ambiguity. The specific issue addressed is the robustness of benefit-cost analyses of climate-change policy alternatives to relaxation of Savage's original axioms. Two alternatives to subjective expected utility (SEU) are considered: maximin expected utility (MEU) and incomplete expected utility (IEU). Among other results, it is demonstrated that polar opposite recommendations can emerge in an ambiguous decision setting even if all agree on Society's rate of time preference, Society's risk attitudes, the degree of ambiguity faced, and the scientific primitives. We show that, for a simple numerical simulation of our model, an MEU decision maker favors policies which immediately tackle climate change while an IEU decision prefers "business as usual"

Technology Adoption in Poorly Specified Environments

This article extends the characteristics-based choice framework of technology adoption to account for decisions taken by boundedly-rational individuals in environments where traits are not fully observed. It is applied to an agricultural setting and introduces the concept of ambiguity in the agricultural technology adoption literature by relaxing strict informational and cognition related assumptions that are implied by traditional Bayesian analysis. The main results confirm that ambiguity increases as local conditions become less homogeneous and as computational ability, own experience and nearby adoption rates decrease. Measurement biases associated with full rationality assumptions are found to increase when decision makers have low computational ability, low experience and when their farming conditions differ widely from average adopter ones. A complementary empirical paper (Useche 2006) finds that models assuming low confidence in observed data, ambiguity and pessimistic expectations about traits predict sample shares better than models which assume that farmers do not face ambiguity or are optimistic about the traits of new varieties.Research and Development/Tech Change/Emerging Technologies,

Decision Making: A Computer-Science and Information-Technology Viewpoint

We address the phenomenon of decision making from the viewpoint of computer science and information technology. The basic question from this viewpoint is: what can the computer offer to decision makers and how it can support their work? Therefore, the main issue is to provide support to people who make complex decisions. In this article, we first present the taxonomy of disciplines that are concerned with methodological and operational aspects of decision support. At the main level, we distinguish between decision sciences, which are concerned with human decision making, and decision systems, which address computer decision making. This is followed by basic definitions related to decision processes and their components. We also describe properties that characterise different classes of decision problems. In the main part of the article, we present three prevailing approaches to decision support and give illustrative examples of their application: decision analysis, operational research, and decision support systems. Finally, we make a short overview of the area of decision systems and its achievements.decision making, decision sciences, decision support, decision analysis, decision systems

Ranqueamento de sistemas de produtos baseado na avaliação da sustentabilidade do ciclo de vida: tomada de decisão estocástica baseada em múltiplos critérios

Purpose – Life cycle sustainability assessment (LCSA) provides useful and comprehensive information on product system performance. However, it poses several challenges for decision-making process due to (i) multidimensional indicators, (ii) conflicting objectives and (iii) uncertainty associated with the performance assessment. This research proposes an approach able to account uncertain life cycle sustainability performances through multiple criteria decision analysis (MCDA) process to support decision-making.Design/methodology/approach – Our method is structured in three phases: i) assessing the uncertainty of LCSA performances, ii) propagating LCSA uncertainty into MCDA methods and iii) interpreting the stochastic results. The approach is applied on an illustrative case study, ranking four alternatives to biodiesel supply.Findings –The recommendation generated by this approach provides an information about the confidence the decision maker can have in a given result (ranking of solutions) under the form of a probability, providing a better knowledge of the risk (in this case due to the uncertainty of the preferred solution). As such, stochastic results, if appropriately interpreted, provide a measure of the robustness of the rankings generated by MCDA methods, overcoming the limitation of the overconfidence of deterministic rankings.Originality/value – The fundamental contributions of this paper are to (i) integrate LCSA uncertainty into decision-making processes through MCDA approach; (ii) provide a sensitivity analysis about the MCDA method choice, (iii) support decision-makers’ preference choices through a transparent elicitation process and (iv) provide a practical decision-making platform that accounts simultaneously uncertain LCSA performances with stakeholders’ value judgments.Propósito – A avaliação de sustentabilidade do ciclo de vida (LCSA) fornece informações úteis e abrangentes sobre o desempenho de um sistema de produtos. Entretanto, existem alguns desafios associado ao processo de tomada de decisão envolvendo esses resultados: (i) indicadores multidimensionais, (ii) objetivos conflitantes e (iii) incerteza associada à avaliação de desempenho. Esta pesquisa propõe uma abordagem que considera a incerteza do desempenho em termos de sustentabilidade do ciclo de vida através do processo de análise de decisão baseado em múltiplos critérios (MCDA) para apoiar a tomada de decisão.Metodologia – Nosso método está estruturado em três fases: i) avaliação da incerteza do desempenho obtido por meio da LCSA, ii) propagação da incerteza da LCSA nos métodos MCDA e iii) interpretação dos resultados estocásticos. A abordagem foi aplicada em um estudo de caso ilustrativo, classificando quatro alternativas de fornecimento de biodiesel.Resultados –  A recomendação gerada por esta abordagem fornece uma informação sobre a confiança que o tomador de decisão pode ter em um determinado resultado (classificação de soluções) sob a forma de uma probabilidade, proporcionando um melhor conhecimento do risco (neste caso devido à incerteza da solução preferida). Assim, os resultados estocásticos, se interpretados de forma adequada, fornecem uma medida da robustez dos rankings gerados pelos métodos MCDA, superando a limitação do excesso de confiança dos rankings determinísticos.Originalidade – As contribuições fundamentais deste artigo são (i) integrar a incerteza da LCSA nos processos de tomada de decisão por meio da abordagem MCDA; (ii) fornecer uma análise de sensibilidade sobre a escolha do método MCDA, (iii) apoiar as escolhas de preferência dos tomadores de decisão por meio de um processo de elicitação transparente e (iv) fornecer uma plataforma de tomada de decisão prática que contabiliza simultaneamente os desempenhos das performances LCSA incertas com julgamentos de valor das partes interessadas

Capturing Preferences Under Incomplete Scenarios Using Elicited Choice Probabilities.

Manski (1999) proposed an approach for dealing with a particular form respondent uncertainty in discrete choice settings, particularly relevant in survey based research when the uncertainty stems from the incomplete description of the choice scenarios. Specifically, he suggests eliciting choice probabilities from respondents rather than their single choice of an alternative. A recent paper in IER by Blass et al. (2010) further develops the approach and presents the first empirical application. This paper extends the literature in a number of directions, examining the linkage between elicited choice probabilities and the more common discrete choice elicitation format. We also provide the first convergent validity test of the elicited choice probability format vis-\`a-vis the standard discrete choice format in a split sample experiment. Finally, we discuss the differences between welfare measures that can be derived from elicited choice probabilities versus those that can obtained from discrete choice responses.discrete choice; Elicited Choice Probabilities

A reason-based theory of rational choice

There is a surprising disconnect between formal rational choice theory and philosophical work on reasons. The one is silent on the role of reasons in rational choices, the other rarely engages with the formal models of decision problems used by social scientists. To bridge this gap, we propose a new, reason-based theory of rational choice. At its core is an account of preference formation, according to which an agent's preferences are determined by his or her motivating reasons, together with a weighing relation between di¤erent combinations of reasons. By explaining how someone's preferences may vary with changes in his or her motivating reasons, our theory illuminates the relationship between deliberation about reasons and rational choices. Although primarily positive, the theory can also help us think about how those preferences and choices ought to respond to normative reasons.rational choice theory, reasons, motivation, expected utility theory, methodology, preference formation, dynamic inconsistency