Making Better Decisions

1. Front Matter

   Pages i-xvii

   PDF

2. Different Paradigms of Decision-Making

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 1-4

3. About the Role of Intuition

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 5-10

4. Towards Analytic Decision-Making

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 11-20

5. How Do Humans Make Choices?

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 21-30

6. Beware of Decision Traps: The World of Certainty

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 31-38

7. Beware of Decision Traps: The World of Uncertainty

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 39-44

8. The Devil Is in the Details

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 45-61

9. A Picture Is Worth a Thousand Words

   • Pekka J. Korhonen, Jyrki Wallenius

   Pages 63-74

10. Choosing Among Known Alternatives

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 75-89

11. Designing Potential Solutions

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 91-99

12. Solving Design Problems

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 101-110

13. Need for Decision Support Systems

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 111-119

14. Use Scenarios Instead of a Crystal Ball

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 121-129

15. Making Operations More Efficient

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 131-139

16. Real-World Problems

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 141-148

17. Negotiating a Deal

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 149-157

18. In Conclusion

    • Pekka J. Korhonen, Jyrki Wallenius

    Pages 159-162

19. Back Matter

    Pages 163-167

    PDF

This book offers a comprehensive introduction to decision-making in an MCDM framework. Designed as a tutorial, it presents the main concepts and methods to be applied, together with essential background information. This includes the concept of nondominance, Simon’s bounded rationality, Tversky and Kahneman’s prospect theory, and the concepts of behavioral vs. mathematical convergence and premature stopping put forward by Korhonen, Moskowitz and Wallenius. The book concludes with a non-technical review of many popular decision algorithms, including the Analytic Hierarchy Process (AHP), VIMDA, and a number of classic interactive man-machine algorithms. In essence, the book is a “one-stop” source on everything you need to know about managerial decision-making in the multiple-criteria setting.

• Decision support
• Behavioral decision making
• Dominance principle
• Mulriple Criteria Decision Aiding
• Multiple Criteria Decision Making
• Multi-attribute choice
• Prospect theory
• Reference-dependent model

• Aalto University School of Business, Espoo, Finland

  Pekka J. Korhonen, Jyrki Wallenius

Pekka J. Korhonen is Emeritus Professor of Statistics at the Aalto University, School of Business, Finland (formerly Helsinki School of Economics). His research interests include Multiple Criteria Decision Making (MCDM), efficiency/performance analysis, choice behavior and interactive decision support systems. His articles have appeared in many leading journals. One of the leading scholars in Multiple Criteria Decision Making, he has served as President of the International Society on Multiple Criteria Decision Making. The International Society on MCDM has bestowed upon him the George Cantor Award. Jyrki Wallenius is Emeritus Professor of Management Science at Aalto University School of Business. He is one of the leaders of his field, which encompasses Multiple Criteria Decision Making and Decision Support. His current research interests focus on multiple objective optimization, in particular hybrid MCDM/EMO approaches, combinatorial multiple objective optimization and behavioral decision theory, including neuro-economics. He is past editor of EJOR and past President of the International Society on Multiple Criteria Decision Making. He is the recipient of numerous awards, both domestic and international.

Policies and ethics