Encyclopedia of Operations Research and Management Science

2013 Edition
| Editors: Saul I. Gass, Michael C. Fu

Decision Analysis in Practice

  • James E. MathesonEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4419-1153-7_1161

Introduction

Decision analysis (DA) is all about practice, as the title of Ronald Howard’s defining paper (Howard 1966; presented in 1965) was “Decision Analysis: Applied Decision Theory.” He went on to elaborate: “Decision analysis is a logical procedure for the balancing of the factors that influence a decision. The procedure incorporates uncertainties, values, and preferences in a basic structure that models a decision. Typically it includes technical, marketing, competitive, and environmental factors. The essence of the procedure is the construction of a structural model of the decision in a form suitable for computation and manipulation; the realization of this model is often a set of computer programs.”

In about 1968, a program of DA was begun at Stanford Research Institute. This group rapidly grew into a major department called the Decision Analysis Group dedicated to helping decision makers in organizations, both industry and government, reach good decisions, while also...

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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.SmartOrg, Inc.Menlo ParkUSA