Multiscale decision making
Encyclopedia
Multiscale decision making, also referred to as Multiscale decision theory (MSDT), is a recently developed approach in operations research
that fuses game theory
, multi-agent
influence diagram
s, in particular dependency graph
s, and Markov decision process
es to solve multiscale challenges across organizational hierarchies, time, space (e.g., topology and geography), states (e.g., queues), and size (e.g., number of nodes, users).
Multiscale decision theory is a fusion between decision theory
and multiscale mathematics
. Multiscale decision theory can model and analyze hierarchical decision-making networks which exhibit multiscale phenomena. The theory's results can be used by mechanism design
ers and decision-makers in organization
s and complex system
s to improve system performance and individual payoffs.
Multiscale decision theory has been successfully applied to manufacturing
enterprises
and service system
s. Current research focuses on identifying multi-level incentive
s to improve value in healthcare systems. Furthermore, researchers are applying multiscale decision theory to improve performance and reliability of power networks (electricity distribution
), the Internet
, homeland security
and defense (military)
systems.
Multiscale decision theory is related to:
Operations research
Operations research is an interdisciplinary mathematical science that focuses on the effective use of technology by organizations...
that fuses game theory
Game theory
Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others...
, multi-agent
Multi-agent system
A multi-agent system is a system composed of multiple interacting intelligent agents. Multi-agent systems can be used to solve problems that are difficult or impossible for an individual agent or a monolithic system to solve...
influence diagram
Influence diagram
An influence diagram is a compact graphical and mathematical representation of a decision situation...
s, in particular dependency graph
Dependency graph
In mathematics, computer science and digital electronics, a dependency graph is a directed graph representing dependencies of several objects towards each other...
s, and Markov decision process
Markov decision process
Markov decision processes , named after Andrey Markov, provide a mathematical framework for modeling decision-making in situations where outcomes are partly random and partly under the control of a decision maker. MDPs are useful for studying a wide range of optimization problems solved via...
es to solve multiscale challenges across organizational hierarchies, time, space (e.g., topology and geography), states (e.g., queues), and size (e.g., number of nodes, users).
Multiscale decision theory is a fusion between decision theory
Decision theory
Decision theory in economics, psychology, philosophy, mathematics, and statistics is concerned with identifying the values, uncertainties and other issues relevant in a given decision, its rationality, and the resulting optimal decision...
and multiscale mathematics
Multiscale mathematics
Multiscale mathematics is a branch of applied and computational mathematics concerned with the accurate and efficient solution of mathematical expressions representing the physical laws of nature across several levels of physical organization and/or spatial/temporal scales.The primary areas of...
. Multiscale decision theory can model and analyze hierarchical decision-making networks which exhibit multiscale phenomena. The theory's results can be used by mechanism design
Mechanism design
Mechanism design is a field in game theory studying solution concepts for a class of private information games...
ers and decision-makers in organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
s and complex system
Complex system
A complex system is a system composed of interconnected parts that as a whole exhibit one or more properties not obvious from the properties of the individual parts....
s to improve system performance and individual payoffs.
Multiscale decision theory has been successfully applied to manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
enterprises
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
and service system
Service system
A service system is a configuration of technology and organizational networks designed to deliver services that satisfy the needs, wants, or aspirations of customers.- Scope of the term :...
s. Current research focuses on identifying multi-level incentive
Incentive
In economics and sociology, an incentive is any factor that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way...
s to improve value in healthcare systems. Furthermore, researchers are applying multiscale decision theory to improve performance and reliability of power networks (electricity distribution
Electricity distribution
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...
), the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
, homeland security
Homeland security
Homeland security is an umbrella term for security efforts to protect states against terrorist activity. Specifically, is a concerted national effort to prevent terrorist attacks within the U.S., reduce America’s vulnerability to terrorism, and minimize the damage and recover from attacks that do...
and defense (military)
Defense (military)
Defense has several uses in the sphere of military application.Personal defense implies measures taken by individual soldiers in protecting themselves whether by use of protective materials such as armor, or field construction of trenches or a bunker, or by using weapons that prevent the enemy...
systems.
Multiscale decision theory is related to:
- Multiscale modelingMultiscale modelingIn engineering, mathematics, physics, meteorology and computer science, multiscale modeling is the field of solving physical problems which have important features at multiple scales, particularly multiple spatial and temporal scales. Important problems include scale linking...
- Decision analysisDecision analysisDecision analysis is the discipline comprising the philosophy, theory, methodology, and professional practice necessary to address important decisions in a formal manner...
- Cooperative distributed problem solvingCooperative distributed problem solvingCooperative Distributed Problem Solving is a network of semi-autonomous processing nodes working together to solve a problem, typically in a multi-agent system. That is concerned with the investigation of problem subdivision, sub-problem distribution, results synthesis, optimisation of problem...
- Decentralized decision makingDecentralized decision makingDecentralized decision making is any process where the decision making authority is distributed throughout a larger group. It also connotes a higher authority given to lower level functionaries, executives, and workers. This can be in any organization of any size, from a governmental authority to a...