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As a decision consultant and researcher, I discuss 40 years of working with policy makers on energy, environmental and foreign policy, defense, and other national issues, making heavy use of applied decision theory. I focus attention on decisions with significant human interest—where clients have sought not only to improve their own decisions, but also to justify them and to influence the decisions of others. I reflect on political, administrative, legal, and personal considerations involved.

After two decades of massive investigation, federal approval of a nuclear waste site is drawing to a close. Large‐scale research to assure that major hazards such as this one are socially acceptable is often highly inefficient, as here. A regulatory remedy would be to require not only that risk currently assessed be acceptable, but also that risk would remain acceptable given any new information. Research to test compliance with these rules has to be cost effective. Research activities should be managed according to an explicit discipline that can be imposed on powerful conflicting interests. They might be required to (1) set targets for the first‐ and second‐order risk assessments, (2) allocate research resources to close any gap between current and target assessments cost effectively, and (3) reallocate resources, as evolving findings dictate. The interests of license applicant (Department of Energy, DOE) and society are distinguished: the former would want the application approved; the latter would want to reject an unacceptable facility.

AbstractWhen making a current decision, like choosing an experiment, a subject will often take into account "subsequent acts" which he does not yet commit to. Common practice requires modeling through preposterior analysis, which treats one act as certain, conditional on the intervening information modeled. This is not logically necessary since the same expected utilities could be obtained by properly conditioning utility on any selection of events (including subsequent acts). The subject could assess utility marginal on subsequent acts or conditional on subsequent acts treated as uncertain events. The preposterior model is a special case of the latter where conditioning information is sufficiently modeled to imply subsequent act probabilities of zero or one. This paper argues that attempts at preposterior modeling are often unsuccessful and have critically flawed much current practice in decision analysis. Simpler approaches such as the "acts‐as‐events" model are intrinsically less dependent on restrictive assumptions and have been successfully applied to many real‐world decisions.

This book describes a variety of programs -- firmly based in psychological theory and modern decision analysis -- that are suitable for teaching adolescents how to improve both their own decision making skills and their understanding of the decision making of others. Providing practical advice as well as theoretical analysis, this volume addresses general questions such as the nature and rationale of the enterprise, its implementation, and its evaluation. Relevant to several current adolescent problems including drug abuse, this is an excellent source, either as research, new curriculum, or en.

An approach to communicating decision and risk analysis findings to managers is illustrated in a real case context. This article consists essentially of a report prepared for senior managers of the Nuclear Regulatory Commission to help them make a reactor safety decision. It illustrates the communication of decision analysis findings relating to technical risks, costs, and benefits in support of a major risk management decision: whether or not to require a safety backfit. Its focus is on the needs of decision makers, and it introduces some novel communication devices.

ABSTRACTThis report presents an application of quantitative decision‐analytic techniques to consider an opportunity for capital investment in a new product.Decision analysis is a well‐established technique for evaluating major decisions in which substantial resources and time are available for the analysis and the problem is definitely formulated at the outset. This case study, however, illustrates how decision‐analytic techniques can be used on‐line to improve decision making in a situation in which time and resources are limited, and the manager's perception of the problem changes in response to feedback from the analysis.The basic decision problem was whether or not the AIL division of Cutler‐Hammer, Incorporated should purchase a six‐month option on a flight‐safety system patent. The president of AIL had only a few weeks in which to make a decision.The analytic approach focused on a probabilistic discounted earnings model. This model was refined over a two‐week period through a sequence of iterations which incorporated the results of both direct and indirect assessments of probabilities and values.The analysis affected the company's decision process by providing a vehicle for structuring the ongoing communication between AIL's president and his advisors, and by focusing their attention on the most important issues. In the end, the analysis facilitated a unanimous decision from the decision‐making group not to purchase the option, but to consider participating in the license as a subcontractor at a later date. This strategy had not been considered at the outset.

Government resource decisions in the Arctic typically involve complex issues; multiple criteria are used to choose among alternatives. This complexity is even greater with petroleum development because of concerns about national energy security, environmental impacts, and economic development. Two decision-aiding techniques may help decision makers clarify their decisions to themselves, the stakeholders, and the general public. The Russian qualitative technique seeks to reduce the number of criteria and find alternative options that may be better than the initial ones. The Western quantitative technique seeks to measure the decision maker's judgement about the utility and certainty of each option. These techniques are applied to two case studies: a decision about gas pipeline routing on the Yamal Peninsula, Russia, and a tool for evaluating applications for development permits on the North Slope of Alaska. The qualitative method is easier to use and may be the best model for people who use numbers infrequently or want to make a claim based on rights. The quantitative method did well at preserving detail and incorporating uncertainty. Both approaches helped to reduce the apparent complexity of the decisions. ; Les décisions gouvernementales concernant les ressources dans l'Arctique mettent le plus souvent en jeu des questions complexes; un grand nombre de critères sont utilisés en vue de choisir parmi différentes options. Cette complexité s'accroît dans le cas de l'exploitation pétrolière en raison des problèmes entourant la sécurité nationale de l'énergie, les retombées environnementales et le développement économique. Deux techniques d'aide à la décision peuvent inciter les décideurs à clarifier leurs décisions pour eux-mêmes, pour les parties intéressées et pour le grand public. La technique qualitative russe cherche à réduire le nombre de critères et à trouver des solutions de rechange qui pourraient être meilleures que les mesures initiales. La technique quantitative occidentale cherche à mesurer le jugement du décideur sur l'utilité et la certitude de chaque option. Ces techniques sont appliquées à deux études de cas: une décision concernant le tracé d'un gazoduc dans la presqu'île de Iamal en Russie, et un outil permettant d'évaluer les demandes de permis d'exploitation sur le versant Nord de l'Alaska. La méthode qualitative est plus facile à utiliser et peut être le meilleur modèle pour des individus qui n'ont pas l'habitude des chiffres ou qui veulent établir une revendication fondée sur des droits. La méthode quantitative réussit bien à préserver le détail et à intégrer l'incertitude. Les deux approches aidaient à réduire la complexité apparente des décisions.

Government resource decisions in the Arctic typically involve complex issues; multiple criteria are used to choose among alternatives. This complexity is even greater with petroleum development because of concerns about national energy security, environmental impacts, and economic development. Two decision-aiding techniques may help decision makers clarify their decisions to themselves, the stakeholders, and the general public. The Russian qualitative technique seeks to reduce the number of criteria and find alternative options that may be better than the initial ones. The Western quantitative technique seeks to measure the decision maker* s judgement about the utility and certainty of each option. These techniques are applied to two case studies: a decision about gas pipeline routing on the Yamal Peninsula, Russia, and a tool for evaluating applications for development permits on the North Slope of Alaska. The qualitative method is easier to use and may be the best model for people who use numbers infrequently or want to make a claim based on rights. The quantitative method did well at preserving detail and incorporating uncertainty. Both approaches helped to reduce the apparent complexity of the decisions.