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Decision-Focused Transformation of Additive Value Models to Improve Communication

Author

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  • Robert A. Dees

    (Department of Systems Engineering, United States Military Academy, West Point, New York 10996)

  • Matthew F. Dabkowski

    (Department of Systems Engineering, United States Military Academy, West Point, New York 10996)

  • Gregory S. Parnell

    (Department of Systems Engineering, United States Military Academy, West Point, New York 10996, and Innovative Decisions, Inc., Vienna, Virginia 22182)

Abstract

When using multiobjective decision analysis with an additive value/utility model, we may define local ranges of the value measures that are bounded by the set of alternatives, or we can define global ranges of the value measures that are bounded by our preferences for some future set of alternatives. Local value models use the full value space defined by the alternatives to distinguish between the alternatives. Global value models may identify new objectives and may help us develop better alternatives, but the alternatives do not usually span the full global value space. We present a mathematical transformation of a global value model's single-dimensional value functions and swing weights to a decision-focused value model using the global value, alternative scores, and transformation equations. When the transformation is appropriate, the decision-focused value model can provide useful distinctions to better communicate the trade-offs between alternatives. We prove that the transformation preserves the rank ordering of the alternatives, and we discuss the appropriate conditions for use.

Suggested Citation

  • Robert A. Dees & Matthew F. Dabkowski & Gregory S. Parnell, 2010. "Decision-Focused Transformation of Additive Value Models to Improve Communication," Decision Analysis, INFORMS, vol. 7(2), pages 172-184, June.
    • Handle: RePEc:inm:ordeca:v:7:y:2010:i:2:p:172-184
    DOI: 10.1287/deca.1090.0168
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    References listed on IDEAS

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    Cited by:

    1. Stephen P. Chambal & Jeffery D. Weir & Yucel R. Kahraman & Alex J. Gutman, 2011. "A Practical Procedure for Customizable One-Way Sensitivity Analysis in Additive Value Models," Decision Analysis, INFORMS, vol. 8(4), pages 303-321, December.
    2. L. Robin Keller, 2010. "From the Editor..," Decision Analysis, INFORMS, vol. 7(3), pages 235-237, September.
    3. L. Robin Keller, 2011. "From the Editor ---Multiattribute and Intertemporal Preferences, Probability, and Stochastic Processes: Models and Assessment," Decision Analysis, INFORMS, vol. 8(3), pages 165-169, September.
    4. L. Robin Keller & Kelly M. Kophazi, 2011. "From the Editors---Deterrence, Multiattribute Utility, and Probability and Bayes' Updating," Decision Analysis, INFORMS, vol. 8(2), pages 83-87, June.
    5. Rakesh K. Sarin & L. Robin Keller, 2013. "From the Editors: Probability Approximations, Anti-Terrorism Strategy, and Bull's-Eye Display for Performance Feedback," Decision Analysis, INFORMS, vol. 10(1), pages 1-5, March.
    6. L. Robin Keller & Ali Abbas & J. Eric Bickel & Vicki M. Bier & David V. Budescu & John C. Butler & Philippe Delquié & Kenneth C. Lichtendahl & Jason R. W. Merrick & Ahti Salo & George Wu, 2011. "From the Editors ---Probability Scoring Rules, Ambiguity, Multiattribute Terrorist Utility, and Sensitivity Analysis," Decision Analysis, INFORMS, vol. 8(4), pages 251-255, December.
    7. Turan Arslan, 2017. "A Weighted Euclidean Distance based TOPSIS Method for Modeling Public Subjective Judgments," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(03), pages 1-18, June.
    8. L. Robin Keller & Kelly M. Kophazi, 2010. "From the Editors..," Decision Analysis, INFORMS, vol. 7(2), pages 151-154, June.

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