Portfolio Decision Analysis

Improved Methods for Resource Allocation

  • Ahti Salo
  • Jeffrey Keisler
  • Alec Morton

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 162)

Table of contents

  1. Front Matter
    Pages i-xv
  2. Preliminaries

    1. Front Matter
      Pages 1-1
    2. Ahti Salo, Jeffrey Keisler, Alec Morton
      Pages 3-27
    3. Jeffrey Keisler
      Pages 29-51
    4. Lawrence D. Phillips
      Pages 53-75
  3. Methodology

    1. Front Matter
      Pages 77-77
    2. Janne Gustafsson, Bert De Reyck, Zeger Degraeve, Ahti Salo
      Pages 79-105
    3. Nikolaos Argyris, José Rui Figueira, Alec Morton
      Pages 107-130
    4. Barbara Fasolo, Alec Morton, Detlof von Winterfeldt
      Pages 149-165
    5. Gonzalo Arévalo, David Ríos Insua
      Pages 167-185
    6. Elmar Kiesling, Johannes Gettinger, Christian Stummer, Rudolf Vetschera
      Pages 187-209
  4. Applications

    1. Front Matter
      Pages 211-211
    2. Julie Stal-Le Cardinal, Vincent Mousseau, Jun Zheng
      Pages 213-240
    3. Gilberto Montibeller, L. Alberto Franco
      Pages 259-281
    4. Roger Chapman Burk, Gregory S. Parnell
      Pages 333-357
    5. Mara Airoldi, Alec Morton
      Pages 359-381
  5. Back Matter
    Pages 383-409

About this book

Introduction

Winner of the 2013 Decision Analysis Publication Award

Portfolio Decision Analysis: Improved Methods for Resource Allocation provides an extensive, up-to-date coverage of decision analytic methods which help firms and public organizations allocate resources to 'lumpy' investment opportunities while explicitly recognizing relevant financial and non-financial evaluation criteria and the presence of alternative investment opportunities. In particular, it discusses the evolution of these methods, presents new methodological advances and illustrates their use across several application domains.

The book offers a many-faceted treatment of portfolio decision analysis (PDA). Among other things, it (i) synthesizes the state-of-play in PDA, (ii) describes novel methodologies, (iii) fosters the deployment of these methodologies, and (iv) contributes to the strengthening of research on PDA. Portfolio problems are widely regarded as the single most important application context of decision analysis, and, with its extensive and unique coverage of these problems, this book is a much-needed addition to the literature. The book also presents innovative treatments of new methodological approaches and their uses in applications.

The intended audience consists of practitioners and researchers who wish to gain a good understanding of portfolio decision analysis and insights into how PDA methods can be leveraged in different application contexts. The book can also be employed in courses at the post-graduate level.

"Resource allocation problems are ubiquitous in business and government organizations. Stated quite simply, we typically have more good ideas for projects and programs than funds, capacity, or time to pursue them. These projects and programs require significant initial investments in the present, with the anticipation of future benefits.   This necessitates balancing the promised return on investment against the risk that the benefits do not materialize. An added complication is that organizations often have complex and poorly articulated objectives and lack a consistent methodology for determining how well alternative investments measure up against those objectives.

I am pleased to see that [the editors] have succeeded in attracting a diverse collection of contributions from a distinguished set of authors. The editors do an excellent job of providing an overview of these contributions in their introductory chapter. I simply conclude by encouraging you to take up where these authors leave off, either by furthering the development of new theory and methods, or by putting these theories and methods to the test in real organizations struggling to make the best use of scarce resources."

Don N. Kleinmuntz, Strata Decision Technology, LLC

Keywords

Decision Analysis Operations Research Portfolio Decision Analysis Resource Allocation

Editors and affiliations

  • Ahti Salo
    • 1
  • Jeffrey Keisler
    • 2
  • Alec Morton
    • 3
  1. 1., Systems Analysis LaboratoryAalto University School of Science and TAaltoFinland
  2. 2.Dept. Management Science &, Information SystemsUniversity of Massachusetts, BostonBostonUSA
  3. 3., Department of ManagementLondon School of EconomicsLondonMontserrat

Bibliographic information

  • DOI https://doi.org/10.1007/978-1-4419-9943-6
  • Copyright Information Springer Science+Business Media, LLC 2011
  • Publisher Name Springer, New York, NY
  • eBook Packages Business and Economics
  • Print ISBN 978-1-4419-9942-9
  • Online ISBN 978-1-4419-9943-6
  • Series Print ISSN 0884-8289
  • About this book