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Influence Diagrams for Team Decision Analysis

Author

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  • Apiruk Detwarasiti

    (The Boston Consulting Group (Thailand), 37th Floor, U-Chu-Liang Building, 968 Rama IV Road, Bangkok 10500, Thailand)

  • Ross D. Shachter

    (Department of Management Science and Engineering, School of Engineering, Stanford University, 380 Panama Way, Stanford, California 94305-4026)

Abstract

We consider the representation and evaluation of team decision making under uncertainty using influence diagrams. We assume that all team members agree on common beliefs and preferences, but complete sharing of information is generally impossible. As a result, the team can be represented as a single rational individual with imperfect recall, and the optimal solution with perfect recall might not be achievable, except in special cases we can recognize. An alternative solution concept is a stable solution that integrates the notion of optimality with that of equilibrium from game theory. We extend this concept from individual decisions to sets of decisions, and introduce the Strategy Improvement and its variation, Uniform Strategy Improvement, as the corresponding solution methods. We also provide a variety of simplifying transformations to the influence diagram by exploiting its graphical structure. The result is a requisite influence diagram, one that requires minimum assessment and creates additional opportunities for optimality.

Suggested Citation

  • Apiruk Detwarasiti & Ross D. Shachter, 2005. "Influence Diagrams for Team Decision Analysis," Decision Analysis, INFORMS, vol. 2(4), pages 207-228, December.
    • Handle: RePEc:inm:ordeca:v:2:y:2005:i:4:p:207-228
    DOI: 10.1287/deca.1050.0047
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    References listed on IDEAS

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    Cited by:

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    2. Jason R. W. Merrick & Fabrizio Ruggeri & Refik Soyer & L. Robin Keller, 2012. "From the Editors---Games and Decisions in Reliability and Risk," Decision Analysis, INFORMS, vol. 9(2), pages 81-85, June.
    3. L. Robin Keller, 2012. "From the Editor---Decisions over Time (Exploding Offers or Purchase Regret), in Game Settings (Embedded Nash Bargaining or Adversarial Games), and in Influence Diagrams," Decision Analysis, INFORMS, vol. 9(1), pages 1-5, March.
    4. Bielza, Concha & Gómez, Manuel & Shenoy, Prakash P., 2011. "A review of representation issues and modeling challenges with influence diagrams," Omega, Elsevier, vol. 39(3), pages 227-241, June.
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    6. Jesus Rios & David Rios Insua, 2009. "Supporting Negotiations over Influence Diagrams," Decision Analysis, INFORMS, vol. 6(3), pages 153-171, September.
    7. L. Robin Keller, 2009. "From the Editor..," Decision Analysis, INFORMS, vol. 6(3), pages 121-123, September.
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