IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v236y2014i2p612-623.html
   My bibliography  Save this article

Approaches to multistage one-shot decision making

Author

Listed:
  • Guo, Peijun
  • Li, Yonggang

Abstract

In this research, multistage one-shot decision making under uncertainty is studied. In such a decision problem, a decision maker has one and only one chance to make a decision at each stage with possibilistic information. Based on the one-shot decision theory, approaches to multistage one-shot decision making are proposed. In the proposed approach, a decision maker chooses one state amongst all the states according to his/her attitude about satisfaction and possibility at each stage. The payoff at each stage is associated with the focus points at the succeeding stages. Based on the selected states (focus points), the sequence of optimal decisions is determined by dynamic programming. The proposed method is a fundamental alternative for multistage decision making under uncertainty because it is scenario-based instead of lottery-based as in the other existing methods. The one-shot optimal stopping problem is analyzed where a decision maker has only one chance to determine stopping or continuing at each stage. The theoretical results have been obtained.

Suggested Citation

  • Guo, Peijun & Li, Yonggang, 2014. "Approaches to multistage one-shot decision making," European Journal of Operational Research, Elsevier, vol. 236(2), pages 612-623.
  • Handle: RePEc:eee:ejores:v:236:y:2014:i:2:p:612-623
    DOI: 10.1016/j.ejor.2013.12.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221713010229
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R. E. Bellman & L. A. Zadeh, 1970. "Decision-Making in a Fuzzy Environment," Management Science, INFORMS, vol. 17(4), pages 141-164, December.
    2. Shapiro, Alexander & Tekaya, Wajdi & da Costa, Joari Paulo & Soares, Murilo Pereira, 2013. "Risk neutral and risk averse Stochastic Dual Dynamic Programming method," European Journal of Operational Research, Elsevier, vol. 224(2), pages 375-391.
    3. Daniel, Engelage, 2011. "Optimal stopping with dynamic variational preferences," Journal of Economic Theory, Elsevier, vol. 146(5), pages 2042-2074, September.
    4. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    5. Guo, Peijun & Tanaka, Hideo, 2003. "Decision analysis based on fused double exponential possibility distributions," European Journal of Operational Research, Elsevier, vol. 148(3), pages 467-479, August.
    6. Minis, I. & Tatarakis, A., 2011. "Stochastic single vehicle routing problem with delivery and pick up and a predefined customer sequence," European Journal of Operational Research, Elsevier, vol. 213(1), pages 37-51, August.
    7. Mahayni, Antje & Schoenmakers, John G.M., 2011. "Minimum return guarantees with fund switching rights—An optimal stopping problem," Journal of Economic Dynamics and Control, Elsevier, vol. 35(11), pages 1880-1897.
    8. Flapper, S.D.P. & Gayon, J.P. & Vercraene, S., 2012. "Control of a production–inventory system with returns under imperfect advance return information," European Journal of Operational Research, Elsevier, vol. 218(2), pages 392-400.
    9. Peijun Guo, 2010. "Private Real Estate Investment Analysis within a One-Shot Decision Framework," International Real Estate Review, Asian Real Estate Society, vol. 13(3), pages 238-260.
    10. Li, Dengfeng & Cheng, Chuntian, 2004. "Stability on multiobjective dynamic programming problems with fuzzy parameters in the objective functions and in the constraints," European Journal of Operational Research, Elsevier, vol. 158(3), pages 678-696, November.
    11. Dubois, Didier & Prade, Henri & Sabbadin, Regis, 2001. "Decision-theoretic foundations of qualitative possibility theory," European Journal of Operational Research, Elsevier, vol. 128(3), pages 459-478, February.
    12. Chen, Xi & Ghate, Archis & Tripathi, Arvind, 2011. "Dynamic lot-sizing in sequential online retail auctions," European Journal of Operational Research, Elsevier, vol. 215(1), pages 257-267, November.
    13. Pal, Bijay Baran & Nath Moitra, Bhola, 2003. "A goal programming procedure for solving problems with multiple fuzzy goals using dynamic programming," European Journal of Operational Research, Elsevier, vol. 144(3), pages 480-491, February.
    14. repec:spr:compst:v:75:y:2012:i:3:p:273-286 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Peijun & Ma, Xiuyan, 2014. "Newsvendor models for innovative products with one-shot decision theory," European Journal of Operational Research, Elsevier, vol. 239(2), pages 523-536.
    2. repec:eee:ejores:v:261:y:2017:i:3:p:994-1000 is not listed on IDEAS
    3. repec:spr:mathme:v:86:y:2017:i:2:d:10.1007_s00186-017-0592-2 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:236:y:2014:i:2:p:612-623. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eor .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.