Methodology of Decision Analysis



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Abstract - Introduction - Objectives
Approach and Activities
Expected Results and Applications
Personnel and Collaboration


Abstract

The project explores, develops and implements methods of decision support for the applied research problem areas in which IIASA is active. The emphasis of the project is on formal methods of analysis and evaluation: the activities, therefore, are more of a mathematical than of a computing science nature. In the last few years, the work of the project has become increasingly related to other IIASA activities, particularly in the environmental area. Continuation of activities that have proved to be useful at IIASA is planned for 1996. A broadening of the research scope of the project is planned, mainly following the suggestions formulated in May 1995 by the Council's Evaluation Committee for the methodological projects.

Introduction

The Methodology of Decision Analysis project deals with formal methods that help to prepare and support decisionmaking. This area of concern is becoming more important for two main reasons. First, because all net effects of prospective decisions need to be evaluated and second, the decisionmaking processes themselves are becoming more complex because of the involvement of numerous parties and interests. A more precise and detailed evaluation and analysis of the effects of prospective decisions needs to be made. Methods also have to be developed to support the selection of decisions. Recent progress in computation and information technology make it indeed possible to implement intelligent methods of decision support.

There are several paradigms for intelligent decision support; for instance, the mathematical approach, the rule-based approach and the black box approach. However, it is not at all clear which paradigm should be used in which situation. In fact, experience indicates that quite often a combination of approaches is preferable. The research focus of the project is to investigate when and how which approach should be used.

For each of the possible approaches, fundamental research is being done in many research institutes all over the world. One aim of this project is to build a bridge between that fundamental research and IIASA's areas of application. This bridge should have twoway traffic: i.e., that theoretical and methodological work be done in an environment where many of the real problems are identified, and that IIASA have this type of in-house expertise available.

The Council's Evaluation Committee for methodological projects in 1995 gave an overall positive evaluation of the research activities in recent years. The Committee also raised important questions and suggested broadening the research scope of the project. IIASA is pursuing these suggestions by issuing a call for proposals aimed at reshaping the project in order to continue the activities needed for the on-going collaboration with other IIASA projects, and to start new research activities in the field of Decision Analysis and Support.

Objectives

The main objective of the project is to acquire the knowledge, methodology and tools for developing decision analysis support methods for classes of research problems within IIASA's areas of interest. Typical, problem classes would be those of land use and land cover change, tropospheric ozone, acid rain, pollution in river basins and environmental consequences of energy use.

Approach and Activities

In 1996, the central part of the project's activities will continue to be the acquisition of knowledge, methodology and tools for developing decision analytic and support methods for particular problems within IIASA's areas of interest. The approach of the project is to develop formal methods of analysis and evaluation: the activities, therefore, are more of a mathematical than of a computing science nature. Presently the project collaborates with several other IIASA projects on various case studies, and ongoing research in this area will be continued with some extensions. The case studies will also be used for testing both the methodology and tools.

Research of decision support methodology in the area of land use policies will be continued and extended. Good results were obtained with an optimization method based on interior point methods and with using Multiple Criteria Model Analysis methods to the problem of Agroecological Zones. In 1996, the aim is to continue the development of a decision support methodology and problem specific tools for a larger class of land use problems for the Modeling Land-Use and Land-Cover Changes Project.

In collaboration with the Transboundary Air Pollution Project, extensions to the existing methods will be developed for the new versions of the RAINS model for Europe and for the RAINS model for Asia. In 1995 an activity was started to develop modeling tools for analysis of the Ozone model (which is a large scale nonlinear programming problem). This collaboration will continue in 1996 and include further development and application of tools for the generation and analysis of medium and large scale optimization models, both for linear and nonlinear problems.

The methodology for supporting decisions regarding water quality in river basins developed and applied in the last three years, and the experience gained in joint research with the Water Resources Project on the Nitra case study, will be extended and applied to similar case studies, if undertaken by the Water Resources Project in the future. Continuation of another joint activity begun in 1995 on modeling approaches for multicriteria reservoir management should be completed in mid-1996.

The activities of the Environmentally Compatible Energy Strategies Project involves using large scale, LP optimization models. The HOPDM (interior point method based LP solver) is being successfully applied to these optimization problems. This provides an opportunity for extending the collaboration to joint research on formulation and solution techniques for the corresponding class of optimization models.

For all the above mentioned activities, the modeling process should be improved. Therefore, the introduction of new modeling tools in these areas will be investigated based on the progress that has been made in recent years with automatic modeling aids for optimization problems. In this regard, the improved multicriteria optimization procedures and modular solvers for different types of optimization problems developed in long-term collaboration with a group of researchers in Poland and with the IIASA projects, will be summarized in 1996 in a book and several modular software packages.

Additional collaboration was initiated in 1995 to model imprecision by fuzzy logic and to apply knowledge representation techniques to support the modeling process. These activities will be further explored in 1996 in connection with the Land-Use Model, Ozone Model and River Basin Model that include multiple fuzzy goals and fuzzy constraints and to apply fuzzy multicriteria decisionmaking techniques to solve them. As this is an untested approach, an assessment of its usefulness will be made in early 1996.

In collaboration with the National Institute for Environmental Studies (NIES) in Japan and with the Modeling Land-Use and Land-Cover Changes in Europe and Northern Asia Project at IIASA, work is proceeding on the development of a computer simulation model to estimate impacts of climate change by the greenhouse effect on agricultural production and arable land-use, and the use of this model to predict these impacts in the Asia-Pacific region. The model development work will contribute to the development of a land-use and land cover change model and will also further the Asia-Pacific Integrated Model (AIM), developed by NIES, for evaluating policy options to stabilize global climate. This research, to be carried out in 1996, comprises the following components:

The following activities will also be continued in 1996:

Additional activities of this type are the investigation of modeling and problem specification tools for global environmental problems, the integration of algorithmic and rulebased approaches for such problems, the integration of black-box approaches (like via neural nets) and rule-based approaches. These activities will be partly included in the cooperation with NIES.

In 1996, the yearly workshop on Advances of Methodology and Software for Decision Support will again be organized in cooperation with Professor Y. Sawaragi, Chairman of the Japan Institute of Systems Research. Apart from this formal workshop, two informal workshops will be organized to summarize results of activities that will be finished this year. The first one aims at summarizing, discussing and dispersing the results, tools and methods for supporting decisions around environmental problems that have been developed in the last five years in strong cooperation with other IIASA projects and with a group of Polish institutions coordinated by Professor A. Wierzbicki. The second one aims at summarizing the results of a joint study with a group from Vienna Economic University on the potential of neurocomputing for analyzing remote sensing data. This study was supported by the Austrian Ministry for Science, Research and Arts. Another aim of this latter workshop is to plan other joint activities in the same area and present them to potential sponsors.

Expected Results and Applications

Selected, primarily methodological, results will be submitted to refereed journals. Other results will be published as IIASA Working Papers. Preparation of an edited volume on methodology, software and applications of Decision Support Systems which summarizes the last few years of research will be completed in 1996. The preparation of a book on "Applications of Fuzzy Logic to Environmental Research Problems" with Kluwer is also planned in 1996. The study on the application of artificial neural nets to the analysis of satellite data will also be documented.

Several existing pilot implementations of modular software packages will be enhanced. This includes:

Personnel and Collaboration

Currently the Project Leader is Jaap Wessels (on a part-time basis), and the research team includes Marek Makowski, Hans-Jürgen Sebastian, Kazuhiko Takemoto, Hiroyuki Tamura and Andrzej Wierzbicki. All members of the MDA project except Marek Makowski are on a part-time basis.

Intensive collaboration will be continued with the following: Manfred M. Fischer, Petra Staufer, Vienna University of Economics and Business Administration, Austria; Birger Funke and Stefanie Geuhs, Aachen University of Technology, Aachen, Germany; Jacek Gondzio and Janusz Sosnowski, Systems Research Institute, Polish Academy of Sciences, Warsaw; Janusz Granat and Piotr Zawicki, Institute of Automatic Control, Warsaw University of Technology, Poland; Marc Haines, University of Koblenz, Germany; Mikiko Kainuma and Tsuneyuki Morita, National Institute of Environmental Studies, Tsukuba, Japan; Yuzuru Matsuoka, Nagoya University, Japan; Yoshiteru Nakamori and Hirotaka Nakayama, Konan University, Kobe, Japan; Wlodzimierz Ogryczak, University of Warsaw, Poland; Gerrit J. van Oortmarssen, Erasmus University, Rotterdam, the Netherlands; Yoshikazu Sawaragi, The Japan Institute of Systems Research, Kyoto; Antonio Pedro Duarte Silva, School of the Porto Regional Center, Catholic University of Portugal; and Antonie Stam, University of Georgia, Athens, USA.

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