A convex approach for multicriteria decision making in hierarchical systems

In this paper hierarchical multicriteria optimization problems are addressed in a convex programming framework. It is assumed that the criteria are aggregated into a nonlinear function, which renders the problem nonseparable, in general. The projection of the problem onto the criteria space is used to obtain an equivalent separable problem, solved through a relaxation procedure implemented on basis of a multilevel structure. At the upper level of the structure, the decision making process involves the solution of a multicriteria problem formulated in the criteria space. The solution encountered at the upper level originates a lower level parametric optimization problem with separable structure that can be treated by standard coordination-decomposition techniques. The convergence of the overall procedure is ensured. The paper includes an application of the approach proposed for the control of dynamic systems with linear quadratic structure. © 1998 John Wiley & Sons, Ltd.     

An evolutionary approach to support decision making with linear decision models

In this paper we consider decision problems that can be described as linear decision models. These models have been traditionally solved using linear programming, fuzzy linear programming, multiple-objective linear programming or ‘what-if’ analysis. Using these approaches, one encounters a number of difficulties. We propose an ‘evolutionary approach’ to overcome these difficulties. In the proposed approach the decision maker does not have to precisely specify the model (i.e. the objective functions, the RHS values, etc.) at the beginning of the solution procedure. In fact, the model evolves as the solution procedure proceeds.     

A response-time approach to comparing generalized rational and take-the-best models of decision making

The authors develop and test generalized versions of take-the-best (TTB) and rational (RAT) models of multiattribute paired-comparison inference. The generalized models make allowances for subjective attribute weighting, probabilistic orders of attribute inspection, and noisy decision making. A key new test involves a response-time (RT) approach. TTB predicts that RT is determined solely by the expected time required to locate the 1st discriminating attribute, whereas RAT predicts that RT is determined by the difference in summed evidence between the 2 alternatives. Critical test pairs are used that partially decouple these 2 factors. Under conditions in which ideal observer TTB and RAT strategies yield equivalent decisions, both the RT results and the estimated attribute weights suggest that the vast majority of subjects adopted the generalized TTB strategy. The RT approach is also validated in an experimental condition in which use of a RAT strategy is essentially forced upon subjects.     

A dual-process approach to health risk decision making: The prototype willingness model

Although dual-process models in cognitive, personality, and social psychology have stimulated a large body of research about analytic and heuristic modes of decision making, these models have seldom been applied to the study of adolescent risk behaviors. In addition, the developmental course of these two kinds of information processing, and their relation to the development of self-regulation are not well understood at this time. The current paper reviews what leading dual-process models have to say about the development of analytic and heuristic decision making, and their implications for adolescent risk behavior. In addition, it reviews research on the prototype willingness model of adolescent decision making—a dual-process model designed specifically to address non-intentional, but volitional adolescent risk behavior. It also discusses the implications of dual-process models for intervention research.     

Perspectives on consumer decision making: an integrated approach

In the consumer behaviour literature several perspectives on consumer decision making have been considered, including the ‘value perspective’, the ‘information processing perspective’, the ‘emotional perspective’ and ‘cue utilisation theory’. In this paper, a framework which integrates several perspectives on consumer decision making and hypothesises possible links between several basic constructs is developed. The framework is tested by the use of two experimental designs. The results of this study support the complexity of consumer decision making with the following findings. First, consumers do not use their cognitive and affective skills independently, rather they affect each other. Secondly, the cognitive, evaluative constructs of quality and attitude had significant direct effects on buying intention in both experiments, whereas the affective construct of emotion had no significant effects on buying intention in both experiments. Thirdly, in both experiments price affected perceived quality, which in turn affected attitude, which in turn affected buying intention. At the same time, price had no direct effect on buying intention. Copyright © 2005 John Wiley & Sons, Ltd.     

A cross-cultural study on online reviews and decision making: An eye-tracking approach

Every information on an online review has a different impact on individual's decision-making process. This difference is attributed to the individual's attribution of responsibility, which influences their cognition. In this study, a survey and eye-tracker were used to conduct a study on restaurant reviews between two groups of participants (U.S. and Japan). Result suggests that the presentation of food in an image has a stronger impact on the Japanese respondents than it is for Americans. Between the two groups of participants, Americans focused more on the positive ratings, whereas Japanese focus on the extreme end of the ratings (1-star vs. 5-star). The distribution of the star ratings, which forms a particular letter shape (e.g., E) also has an impact on respondents' decision-making process. Results show that Americans fixate on the shape of the distribution 7–8 times longer than the Japanese respondents. The result in this study suggests that the cultural cognition and attribution of responsibility, which is reflected in respondents' cultural dimensions (e.g., monumentalism vs. flexhumility), need to be considered. These considerations will affect how a company presents their information on a review site so that the content resonates and aids in their consumers' decision-making process.     

Cognitive mapping approach analyzing societal decision‐making

Cognitive mapping (CM) approach is reviewed, and the method is applied in analyzing an important case of societal decision‐making. It is shown that CM is an effective way of representing argumentation, consequences, and the linkage between the concepts. The method integrates causal modelling and rational choice theory with parts of cognitive psychology. CM allows for a systematic arguing of issues. The decision‐making problem described here concerns building a new nuclear power plant in Finland. There occurred strong proponents representing mainly the industry and technocratic and engineering experts, and an equally strong resistance represented by ordinary citizens, parliamentarians, and experts. The argumentation went ten years pro and cons before the parliament in 1993 decided against building the proposed nuclear power plant. It gives an ideal case to study the argumentation and contradictions there in as a whole by developing and applying a cognitive mapping approach.     

An application of a dual-process approach to decision making in social dilemmas

This study compared psychological and behavioral responses in a take-some social dilemma with those in a give-some situation and suggested an explanation in terms of a dual process model. Participants facing the take-some dilemma exhibited a higher level of cooperation than those facing the give-some dilemma only in their first decision trial, and this effect was independent of our experimental manipulation of the information processing mode. Furthermore, once an experiential mode was induced, participants spent less time and experienced less conflict when making decisions in the take-some dilemma than in the give-some situations. The findings indicate that in social dilemmas the information processing mode has a stronger effect on psychological responses than on behavioral responses.     

A hybrid neutrosophic multiple criteria group decision making approach for project selection

The project selection is one of the most important phases of a project life cycle. The project selection is considered as a Multi-Criteria Decision-Making (MCDM) problem. This research aims to study the integration between Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) into Decision-Making Trial and Evaluation Laboratory (DEMATEL) under neutrosophic environment to provide a new technique for making a decision regarding the choice of appropriate project (project selection) as one of the most important phases of the project life cycle. Projects are selected by comparing them against many criteria. Criteria are evaluated based on expert’s opinion. Sometimes experts cannot give reliable information due to the non-deterministic environment. The neutrosophic set theory will be used to handle and overcome the ambiguity or lack of confirmation of information. The criteria are weighted by DEMATEL, then the best project alternative is selected using TOPSIS. In the proposed model, each pairwise comparison judgments is symbolized as a trapezoidal neutrosophic number. Experts will focus only on (n − 1) judgments for n alternatives to overcome the difficulties of [(n * (n − 1))/2] consistence judgments in case of increasing number of alternatives. A numerical example is developed to show the validation of the suggested model in the neutrosophic environment.     

Price-directive decision making in hierarchical systems with conflicting preferences

In this paper we consider a classical model of price-directive decision making in hierarchical organizations, namely Dantzig-Wolfe decomposition, well known from single-objective programming. Here, however, we allow for preference differences that are usually observed between a central unit and a subunit in an organizational structure. The procedure models, therefore, how decision making may evolve in a context with decentralized information as well as intra- and interpersonal conflicts. Several numerical experiments with the procedure have been performed. The results of those experiments demonstrate that the procedure in many instances converges towards an efficient solution, despite the differences in the criteria weights used in the master problem and the subproblem respectively. This suggests that some amount of goal discordance need not prohibit efficient decision making in a hierarchical organization.     

On the application of J.M. Keynes's approach to decision making

It is shown that J. M. Keynes was the originator of what is called a weighted monetary value (WMV) approach to decision making under uncertainty and risk as opposed to either the expected monetary value (EMV) or subjective expected utility (SEU) approaches.     

Executive functions in decision making: An individual differences approach

This individual differences study examined the relationships between three executive functions (updating, shifting, and inhibition), measured as latent variables, and performance on two cognitively demanding subtests of the Adult Decision Making Competence battery: Applying Decision Rules and Consistency in Risk Perception. Structural equation modelling showed that executive functions contribute differentially to performance in these two tasks, with Applying Decision Rules being mainly related to inhibition and Consistency in Risk Perception mainly associated to shifting. The results suggest that the successful application of decision rules requires the capacity to selectively focus attention and inhibit irrelevant (or no more relevant) stimuli. They also suggest that consistency in risk perception depends on the ability to shift between judgement contexts.     

Pragmatic approach to decision making under uncertainty: The case of the disjunction effect

The disjunction effect (Tversky & Shafir, 1992 Tversky, A. and Shafir, E. 1992. The disjunction effect in choice under uncertainty. Psychological Science, 3: 305–309. [Crossref], [Web of Science ®] , [Google Scholar]) occurs when decision makers prefer option x (versus y) when knowing that event A occurs and also when knowing that event A does not occur, but they refuse x (or prefer y) when not knowing whether or not A occurs. This form of incoherence violates Savage's (1954 Savage, L. J. 1954. The foundations of statistics, New York: Wiley.  [Google Scholar]) sure-thing principle, one of the basic axioms of the rational theory of decision making. The phenomenon was attributed to a lack of clear reasons for accepting an option (x) when subjects are under uncertainty. Through a pragmatic analysis of the task and a consequent reformulation of it, we show that the effect does not depend on the presence of uncertainty, but on the introduction of non-relevant goals into the text problem, in both the well-known Gamble problem and the Hawaii problem.     

Computer-augmented decision making

The principal judgmental components of multiattribute decision making are examined here with specific reference to how these components can be captured electronically. Once captured, a function, rule, or algorithm may be executed for the integration of this information and the selection of the optimal alternative(s). Two kinds of algorithms are discussed: one based on linear models, the other on fuzzy-set theory and ratio scaling. With on-line support and certain assumptions about human biases (which lead to nonoptimal decisions), the quality of decisions can be enhanced considerably. The principal concerns are with end-user acceptance of computer augmented decisions.     

Toward understanding Malaysian fishermen's decision making on the use of fishing technology: A mental model approach

The vast majority of Malaysia's fishermen are located in rural areas, specifically in the Western and Eastern coastal regions of Peninsular Malaysia and the Sabah and Sarawak central zones. In these areas, the fishing industry is relied upon as a major economic contributor to the region's residents. Despite the widespread application of various modern technologies into the fishing industry (i.e., GPS, sonar, echo sounder, remote sensing), and the Malaysian government's efforts to encourage their adoption, many small‐scale fishermen in the country's rural areas continue to rely on traditional fishing methods. This refusal to embrace new technologies has resulted in significant losses in fish yields and needed income, and has raised many questions regarding the inputs to decision making of the fishermen. Drawing on multiple literatures, in this article we argue for the use of a mental model approach to gain an in‐depth understanding of rural Malaysian fishermen's choices of technology adoption according to four main constructs—prior experience, knowledge, expertise and beliefs or values. To provide needed inputs to agricultural specialists and related policy makers for the development of relevant plans of action, this article aims to provide a way forward for others to understand dispositional barriers to technology adoption among fishermen who use traditional methods in non‐Western contexts.