Reference Point Methods in Vector Optimization and Decision Support

This paper presents a summary of reference point methodology in vector optimization and decision support. The methodology was developed at IIASA since 1980 and applied in numerous projects, both in IIASA and elsewhere. The paper presents methodological foundations, basic concepts and notation, reference points and achievement functions, neutral and weighted compromise solutions, issues of modeling for multi-objective analysis, some basic applications of reference point methods and a discussion of a decision process type supported by reference point methodology

Psychological Stability of Solutions in the Multiple Criteria Decision Problems

In interactive programming, a choice behavior of the decision maker may differ depending on a proximity of current solution to satisfactory values of the objectives. An interactive approach proposed in this paper allows the decision maker to use different search principles depending on his/her perception of the achieved values of the objectives and trade-offs. While an analysis of values of the objectives may guide the initial search for a final solution, it can be replaced by trade-off evaluations at some later stages of interactive decision making. Such an approach allows the decision maker to change search principles, and to identify a psychologically stable solution of the multiple criteria decision problem

Aspiration Based Decision Analysis and Support Part I: Theoretical and Methodological Backgrounds

In the interdisciplinary and intercultural systems analysis that constitutes the main theme of research in IIASA, a basic question is how to analyze and support decisions with help of mathematical models and logical procedures. This question -- particularly in its multi-criteria and multi-cultural dimensions -- has been investigated in System and Decision Sciences Program (SDS) since the beginning of IIASA. Researchers working both at IIASA and in a large international network of cooperating institutions contributed to a deeper understanding of this question. Around 1980, the concept of reference point multiobjective optimization was developed in SDS. This concept determined an international trend of research pursued in many countries cooperating with IIASA as well as in many research programs at IIASA -- such as energy, agricultural, environmental research. SDS organized since this time numerous international workshops, summer schools, seminar days and cooperative research agreements in the field of decision analysis and support. By this international and interdisciplinary cooperation, the concept of reference point multiobjective optimization has matured and was generalized into a framework of aspiration based decision analysis and support that can be understood as a synthesis of several known, antithetical approaches to this subject -- such as utility maximization approach, or satisficing approach, or goal -- program -- oriented planning approach. Jointly, the name of quasisatisficing approach can be also used, since the concept of aspirations comes from the satisficing approach. Both authors of the Working Paper contributed actively to this research: Andrzej Wierzbicki originated the concept of reference point multiobjective optimization and quasisatisficing approach, while Andrzej Lewandowski, working from the beginning in the numerous applications and extensions of this concept, has had the main contribution to its generalization into the framework of aspiration based decision analysis and support systems. This paper constitutes a draft of the first part of a book being prepared by these two authors. Part I, devoted to theoretical foundations and methodological background, written mostly by Andrzej Wierzbicki, will be followed by Part II, devoted to computer implementations and applications of decision support systems based on mathematical programming models, written mostly by Andrzej Lewandowski. Part III, devoted to decision support systems for the case of subjective evaluations of discrete decision alternatives, will be written by both authors

IAC-DIDAS-L Dynamic Interactive Decision Analysis and Support System Linear Version

This paper is one of the series of 11 Working Papers presenting the software for interactive decision support and software tools for developing decision support systems. These products constitute the outcome of the contracted study agreement between the System and Decision Sciences Program at IIASA and several Polish scientific institutions. The theoretical part of these results is presented in the IIASA Working Paper WP-88-071 entitled "Theory, Software and Testing Examples in Decision Support Systems". This volume contains the theoretical and methodological backgrounds of the software systems developed within the project. This paper presents user documentation for two versions of decision analysis and support systems of DIDAS family: IAC-DIDAS-L1 (pilot version) and IAC-DIDAS-L2. These programs can be used for supporting decision problems when the model of the decision situation can be described using the linear programming framework

State-of-the-Art Report on Systems Analysis Methods for Resolution of Conflicts in Water Resources Management

Water is an important factor in conflicts among stakeholders at the local, regional, and even international level. Water conflicts have taken many forms, but they almost always arise from the fact that the freshwater resources of the world are not partitioned to match the political borders, nor are they evenly distributed in space and time. Two or more countries share the watersheds of 261 major rivers and nearly half of the land area of the wo rld is in international river basins. Water has been used as a military and political goal. Water has been a weapon of war. Water systems have been targets during the war. A role of systems approach has been investigated in this report as an approach for resolution of conflicts over water. A review of systems approach provides some basic knowledge of tools and techniques as they apply to water management and conflict resolution. Report provides a classification and description of water conflicts by addressing issues of scale, integrated water management and the role of stakeholders. Four large-scale examples are selected to illustrate the application of systems approach to water conflicts: (a) hydropower development in Canada; (b) multipurpose use of Danube river in Europe; (c) international water conflict between USA and Canada; and (d) Aral See in Asia. Water conflict resolution process involves various sources of uncertainty. One section of the report provides some examples of systems tools that can be used to address objective and subjective uncertainties with special emphasis on the utility of the fuzzy set theory. Systems analysis is known to be driven by the development of computer technology. Last section of the report provides one view of the future and systems tools that will be used for water resources management. Role of the virtual databases, computer and communication networks is investigated in the context of water conflicts and their resolution.https://ir.lib.uwo.ca/wrrr/1005/thumbnail.jp

Reference Point Approaches and Objective Ranking

The paper presents a reflection on some of the basic assumptions and philosophy of reference point approaches, stressing their unique concentra-tion on the sovereignty of the subjective decision maker. As a new devel-opment in reference point approaches also the concept of objective ranking is stressed, defined as dependent only on a given set of data, relevant for the decision situation, and independent from any more detailed specifica-tion of personal preferences than that given by defining criteria and the partial order in criterion space. Rational objective ranking can be based on reference point approach, because reference levels needed in this approach can be established objectively statistically from the given data set. Exam-ples show that such objective ranking can be very useful in many man-agement situations

IAC-DIDAS-N - A Dynamic Interactive Decision Analysis and Support System for Multicriteria Analysis of Nonlinear Models, v.4.0

This paper presents introductive and user documentation -- including extended summary, theoretical manual, short user manual and description of illustrative examples -- for a version of decision analysis and support systems of DIDAS family that is designed for multicriteria analysis of nonlinear models on professional microcomputers. This version has been developed in the years 1986-1990 in the Institute of Automatic Control, Warsaw University of Technology, under a joint research program with the Systems and Decision Sciences Program of IIASA. It can be run on professional microcomputers compatible with IBM-PC-XT or AT (with Hercules Graphics Card, Color Graphics Adapter or Enhanced Graphics Adapter and, preferably, with a numeric coprocessor and a hard disk) and supports graphical representation of results of interactive multicriteria analysis. Moreover, this version called IAC-DIDAS-N is provided with a new nonlinear model generator and editor that support, in an easy standard of a spreadsheet, the definition, edition and symbolic differentiation of nonlinear substantive models for multiobjective decision analysis. A specially introduced standard of defining nonlinear programming models for multiobjective optimization helps to connect the model generator with other parts of the system. Optimization runs involved in interactive, multiobjective decision analysis are performed by a solver, that is, a version of nonlinear programming algorithm specially adapted for multiobjective problems. This algorithm is based on shifted penalty functions and projected conjugate directions techniques similarly as in former nonlinear versions of DIDAS, but it was further developed and several improvements were added. The system is permanently updated and developed. Currently (starting from October 1990) the version 4.0 of the system is released. Most of enhancements added in this version are not directly visible to the user. They influence the efficiency of the system

Interactive Decision Analysis in Energy Planning and Policy Assessment

In recent years, there has been considerable fruitful collaboration between the System and Decision Sciences (SDS) Program and the Energy Project at IIASA. This paper gives an overview of this joint work, which involves the use of methodological tools developed in SDS to analyze decision situations based on models constructed in the Energy Project. The paper starts with a study of the use of the earliest version of DIDASS in conjunction with the energy supply model MESSAGE. It then describes how construction of more advanced energy models such as MESSAGE II, SEMA (an Austrian energy model), and GATE (a model of gas trade in Europe) took place in parallel with the development of an interactive multiple-criteria LP-solver (IMM), which represents a first step towards the integration of modeling and optimization processes in the analysis of complex decision situations. We hope that such collaboration will continue to provide a driving force for advances in different areas of IIASA research

Multicriteria Methodology for the NEEDS Project

This report begins with an overview of multicriteria analysis methods, and the basic principles of developing mathematical models for such analysis. An overview of various representation of user prefereces is then presented, including methods based on pairwise comparisons of criteria and those based on scalarizing functions. This is followed by a summary of structures of criteria and alternatives. Next, basic properties of multi-criteria analysis are discussed, followed by a more detailed presentation of the similarities of and differences between the main methods based on scalarizing function. This report concludes that existing methods do not best meet the needs of the NEEDS project, presents the reasons, and proposes a new methodology for development. Depending upon the development and testing of this new methodology, an existing method will also be chosen as a backup for comparative or alternate use