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Common Mistakes in Making Value Trade-Offs

Author

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  • Ralph L. Keeney

    (Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Abstract

Value trade-offs define how much must be gained in the achievement of one objective to compensate for a lesser achievement on a different objective. Value trade-offs that adequately express a decision maker's values are essential both for good decision making in multiple-objective contexts and for insightful analyses of multiple-objective decisions. This paper identifies and illustrates 12 important mistakes frequently made that limit one's ability to determine useful value trade-offs. It then suggests how to avoid making these mistakes. The intent is to provide practical advice for making good value trade-offs, and hence, better decisions.

Suggested Citation

  • Ralph L. Keeney, 2002. "Common Mistakes in Making Value Trade-Offs," Operations Research, INFORMS, vol. 50(6), pages 935-945, December.
    • Handle: RePEc:inm:oropre:v:50:y:2002:i:6:p:935-945
    DOI: 10.1287/opre.50.6.935.357
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    References listed on IDEAS

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