A FINANCIAL AND ECONOMIC ACTIVITIES EFFECTIVENESS EVALUATION AS A CONDITION OF CORPORATE MANAGEMENT DECISIONS MAKING

Directory of Open Access Journals (Sweden)

Nataliia Bieliaieva

2017-09-01

Full Text Available The purpose of the paper is to substantiate, on the real figures, the need for enterprise’s financial and economic activities analysis as a condition of management decisions making to achieve the success of the company. Methodology. The research is based on a comparison and analysis of data from the organization top management. So using matrix analysis in the paper, the financial and economic activities effectiveness is evaluated. Based on these calculations, it is possible to make conclusions about the necessity of an identified management decisions regarding the future activity of the company. Results. Daily managers of various function levels accept hundreds and thousands of decisions regarding seemingly slight problems of the organization in general. At the same time, every such a decision, especially relating to the activity of the whole structure, should be clearly justified. Such a need stems from the fact that every decision leads to certain consequences. If there is a need to make a decision relating to the future of the enterprise (e.g., embodiment, reorganization, etc., it should be based on the data of the entire structure. And that is generally very difficult to do. Many factors complicate the possibility of comprehensive evaluation of the company’s activity. At the same time, analysis of basic indicators will provide the specialist with some directions according to which the priority of the analysis can be indicated and appropriate management decision can be made. Practical implications. It is built an effectiveness matrix of financial and economic activities of the enterprise. Analysis of financial and economic activities makes it possible to design necessary strategic and tactical plan for the enterprise development, revealing its reserves of production efficiency increasing. So the aim of the paper is the assessment of the effectiveness of financial and economic activities of the company on the base of matrix analysis as a

Understanding consumer decisions using behavioural economics

NARCIS (Netherlands)

Zandstra, E.H.; Miyapuram, K.P.; Tobler, P.N.; Pammi, C.; Srinivasan, N.

2013-01-01

People make many decisions throughout the day involving finances, food and health. Many of these decisions involve considering alternatives that will occur at some point in the future. Behavioural economics is a field that studies how people make these decisions (Camerer, 1999)[[Au: The reference

ECONOMIC EFFICIENCY - DETERMINED ELEMENT IN INVESTMENT DECISION

Directory of Open Access Journals (Sweden)

Claudia MUNGIU-PUPAZAN

2010-03-01

Full Text Available Economic activity of a country are conducted by industry, under branches and production sectors, each with special characteristics and conditions of work, which, of course, put their imprint on the organization manner of the production process By an analysis of the concept of economic efficiency of investment is found that this is an amount of qualitative factors, which gives the latter a complex character, aimed to improving activity in the area where are taking place to the putting into service of such investment, which can be modernization, bringing new equipments, reconstruction and development. Study the economic efficiency of investment involves, as a base, an analysis of causal factors that determine the decision in the afferent medium of risk. Corresponding to peculiarities of the production process, it requires a proper methodology of assessment the economic efficiency of investment, with specification to maintain the general principles for calculating the economic efficiency indicators and specific indicators come only to complete the picture of indicators of general, basic and supplementary already calculated in order to provide additional clues, afferent to branch, under-branch or sector of activity.

[Decision modeling for economic evaluation of health technologies].

Science.gov (United States)

de Soárez, Patrícia Coelho; Soares, Marta Oliveira; Novaes, Hillegonda Maria Dutilh

2014-10-01

Most economic evaluations that participate in decision-making processes for incorporation and financing of technologies of health systems use decision models to assess the costs and benefits of the compared strategies. Despite the large number of economic evaluations conducted in Brazil, there is a pressing need to conduct an in-depth methodological study of the types of decision models and their applicability in our setting. The objective of this literature review is to contribute to the knowledge and use of decision models in the national context of economic evaluations of health technologies. This article presents general definitions about models and concerns with their use; it describes the main models: decision trees, Markov chains, micro-simulation, simulation of discrete and dynamic events; it discusses the elements involved in the choice of model; and exemplifies the models addressed in national economic evaluation studies of diagnostic and therapeutic preventive technologies and health programs.

Herding, social influence and economic decision-making: socio-psychological and neuroscientific analyses.

Science.gov (United States)

Baddeley, Michelle

2010-01-27

Typically, modern economics has steered away from the analysis of sociological and psychological factors and has focused on narrow behavioural assumptions in which expectations are formed on the basis of mathematical algorithms. Blending together ideas from the social and behavioural sciences, this paper argues that the behavioural approach adopted in most economic analysis, in its neglect of sociological and psychological forces and its simplistically dichotomous categorization of behaviour as either rational or not rational, is too narrow and stark. Behaviour may reflect an interaction of cognitive and emotional factors and this can be captured more effectively using an approach that focuses on the interplay of different decision-making systems. In understanding the mechanisms affecting economic and financial decision-making, an interdisciplinary approach is needed which incorporates ideas from a range of disciplines including sociology, economic psychology, evolutionary biology and neuroeconomics.

Health economic choices in old age: interdisciplinary perspectives on economic decisions and the aging mind.

Science.gov (United States)

Nielsen, Lisbeth; Phillips, John W R

2008-01-01

This chapter offers an integrative review of psychological and neurobiological differences between younger and older adults that might impact economic behavior. Focusing on key health economic challenges facing the elderly, it offers perspectives on how these psychological and neurobiological factors may influence decision-making over the life course and considers future interdisciplinary research directions. We review relevant literature from three domains that are essential for developing a comprehensive science of decision-making and economic behavior in aging (psychology, neuroscience, and economics), consider implications for prescription drug coverage and long-term care (LTC) insurance, and highlight future research directions. Older adults face many complex economic decisions that directly affect their health and well-being, including LTC insurance, prescription drug plans, and end of life care. Economic research suggests that many older Americans are not making cost-effective and economically rational decisions. While economic models provide insight into some of the financial incentives associated with these decisions, they typically do not consider the roles of cognition and affect in decision-making. Research has established that older age is associated with predictable declines in many cognitive functions and evidence is accumulating that distinct social motives and affect-processing profiles emerge in older age. It is unknown how these age differences impact the economic behaviors of older people and implies opportunities for path-breaking interdisciplinary research. Our chapter looks to develop interdisciplinary research to better understand the causes and consequences of age-related changes in economic decision-making and guide interventions to improve public programs and overall social welfare.

Introduction to health economics and decision-making: Is economics relevant for the frontline clinician?

Science.gov (United States)

Goeree, Ron; Diaby, Vakaramoko

2013-12-01

In a climate of escalating demands for new health care services and significant constraints on new resources, the disciplines of health economics and health technology assessment (HTA) have increasingly been turned to as explicit evidence-based frameworks to help make tough health care access and reimbursement decisions. Health economics is the discipline of economics concerned with the efficient allocation of health care resources, essentially trying to maximize health benefits to society contingent upon available resources. HTA is a broader field drawing upon several disciplines, but which relies heavily upon the tools of health economics and economic evaluation. Traditionally, health economics and economic evaluation have been widely used at the political (macro) and local (meso) decision-making levels, and have progressively had an important role even at informing individual clinical decisions (micro level). The aim of this paper is to introduce readers to health economics and discuss its relevance to frontline clinicians. Particularly, the content of the paper will facilitate clinicians' understanding of the link between economics and their medical practice, and how clinical decision-making reflects on health care resource allocation. Copyright © 2013 Elsevier Ltd. All rights reserved.

Systems Analysis and Design for Decision Support Systems on Economic Feasibility of Projects

Science.gov (United States)

Balaji, S. Arun

2010-11-01

This paper discuss about need for development of the Decision Support System (DSS) software for economic feasibility of projects in Rwanda, Africa. The various economic theories needed and the corresponding formulae to compute payback period, internal rate of return and benefit cost ratio of projects are clearly given in this paper. This paper is also deals with the systems flow chart to fabricate the system in any higher level computing language. The various input requirements from the projects and the output needed for the decision makers are also included in this paper. The data dictionary used for input and output data structure is also explained.

An economic decision framework using modeling for improving aquifer remediation design

International Nuclear Information System (INIS)

James, B.R.; Gwo, J.P.; Toran, L.E.

1995-11-01

Reducing cost is a critical challenge facing environmental remediation today. One of the most effective ways of reducing costs is to improve decision-making. This can range from choosing more cost- effective remediation alternatives (for example, determining whether a groundwater contamination plume should be remediated or not) to improving data collection (for example, determining when data collection should stoop). Uncertainty in site conditions presents a major challenge for effective decision-making. We present a framework for increasing the effectiveness of remedial design decision-making at groundwater contamination sites where there is uncertainty in many parameters that affect remediation design. The objective is to provide an easy-to-use economic framework for making remediation decisions. The presented framework is used to 1) select the best remedial design from a suite of possible ones, 2) estimate if additional data collection is cost-effective, and 3) determine the most important parameters to be sampled. The framework is developed by combining elements from Latin-Hypercube simulation of contaminant transport, economic risk-cost-benefit analysis, and Regional Sensitivity Analysis (RSA)

Probabilistic sensitivity analysis in health economics.

Science.gov (United States)

Baio, Gianluca; Dawid, A Philip

2015-12-01

Health economic evaluations have recently become an important part of the clinical and medical research process and have built upon more advanced statistical decision-theoretic foundations. In some contexts, it is officially required that uncertainty about both parameters and observable variables be properly taken into account, increasingly often by means of Bayesian methods. Among these, probabilistic sensitivity analysis has assumed a predominant role. The objective of this article is to review the problem of health economic assessment from the standpoint of Bayesian statistical decision theory with particular attention to the philosophy underlying the procedures for sensitivity analysis. © The Author(s) 2011.

Behavioral Economics: A New Lens for Understanding Genomic Decision Making.

Science.gov (United States)

Moore, Scott Emory; Ulbrich, Holley H; Hepburn, Kenneth; Holaday, Bonnie; Mayo, Rachel; Sharp, Julia; Pruitt, Rosanne H

2018-05-01

This article seeks to take the next step in examining the insights that nurses and other healthcare providers can derive from applying behavioral economic concepts to support genomic decision making. As genomic science continues to permeate clinical practice, nurses must continue to adapt practice to meet new challenges. Decisions associated with genomics are often not simple and dichotomous in nature. They can be complex and challenging for all involved. This article offers an introduction to behavioral economics as a possible tool to help support patients', families', and caregivers' decision making related to genomics. Using current writings from nursing, ethics, behavioral economic, and other healthcare scholars, we review key concepts of behavioral economics and discuss their relevance to supporting genomic decision making. Behavioral economic concepts-particularly relativity, deliberation, and choice architecture-are specifically examined as new ways to view the complexities of genomic decision making. Each concept is explored through patient decision making and clinical practice examples. This article also discusses next steps and practice implications for further development of the behavioral economic lens in nursing. Behavioral economics provides valuable insight into the unique nature of genetic decision-making practices. Nurses are often a source of information and support for patients during clinical decision making. This article seeks to offer behavioral economic concepts as a framework for understanding and examining the unique nature of genomic decision making. As genetic and genomic testing become more common in practice, it will continue to grow in importance for nurses to be able to support the autonomous decision making of patients, their families, and caregivers. © 2018 Sigma Theta Tau International.

Probabilistic Analysis in Management Decision Making

DEFF Research Database (Denmark)

Delmar, M. V.; Sørensen, John Dalsgaard

1992-01-01

The target group in this paper is people concerned with mathematical economic decision theory. It is shown how the numerically effective First Order Reliability Methods (FORM) can be used in rational management decision making, where some parameters in the applied decision basis are uncertainty...... quantities. The uncertainties are taken into account consistently and the decision analysis is based on the general decision theory in combination with reliability and optimization theory. Examples are shown where the described technique is used and some general conclusion are stated....

Investor decisions through the lens of behavioral economics

Directory of Open Access Journals (Sweden)

David S. Murphy

2013-07-01

Full Text Available Traditional economic theory postulates that people are rational. This implies that people make decisions to maximize their utility functions and to do this, that they have fully and correctly evaluated their preferences and limitations. Behavioral economics recognizes that this is not always true, that sometimes information is incomplete. This article is examines some of the effects of behavioral economics (which come largely from cognitive psychology in decision-making by investors in the stock exchanges.

Robustness of Multiple Objective Decision Analysis Preference Functions

Science.gov (United States)

2002-06-01

Bayesian Decision Theory and Utilitarian Ethics ,” American Economic Review Papers and Proceedings, 68: 223-228 (May 1978). Hartsough, Bruce R. “A...1983). Morrell, Darryl and Eric Driver. “ Bayesian Network Implementation of Levi’s Epistemic Utility Decision Theory ,” International Journal Of...elicitation efficiency for the decision maker. Subject Terms Decision Analysis, Utility Theory , Elicitation Error, Operations Research, Decision

INCLUDING RISK IN ECONOMIC FEASIBILITY ANALYSIS:A STOCHASTIC SIMULATION MODEL FOR BLUEBERRY INVESTMENT DECISIONS IN CHILE

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GERMÁN LOBOS

2015-12-01

Full Text Available ABSTRACT The traditional method of net present value (NPV to analyze the economic profitability of an investment (based on a deterministic approach does not adequately represent the implicit risk associated with different but correlated input variables. Using a stochastic simulation approach for evaluating the profitability of blueberry (Vaccinium corymbosum L. production in Chile, the objective of this study is to illustrate the complexity of including risk in economic feasibility analysis when the project is subject to several but correlated risks. The results of the simulation analysis suggest that the non-inclusion of the intratemporal correlation between input variables underestimate the risk associated with investment decisions. The methodological contribution of this study illustrates the complexity of the interrelationships between uncertain variables and their impact on the convenience of carrying out this type of business in Chile. The steps for the analysis of economic viability were: First, adjusted probability distributions for stochastic input variables (SIV were simulated and validated. Second, the random values of SIV were used to calculate random values of variables such as production, revenues, costs, depreciation, taxes and net cash flows. Third, the complete stochastic model was simulated with 10,000 iterations using random values for SIV. This result gave information to estimate the probability distributions of the stochastic output variables (SOV such as the net present value, internal rate of return, value at risk, average cost of production, contribution margin and return on capital. Fourth, the complete stochastic model simulation results were used to analyze alternative scenarios and provide the results to decision makers in the form of probabilities, probability distributions, and for the SOV probabilistic forecasts. The main conclusion shown that this project is a profitable alternative investment in fruit trees in

Economic decision-models for climate adaptation: a survey; Ekonomiska verktyg som beslutsstoed i klimatanpassningsarbetet: en metodoeversikt

Energy Technology Data Exchange (ETDEWEB)

Kaagebro, Elin; Vredin Johansson, Maria

2008-05-15

Several of the adaptations to the climate change we are about to experience will occur successively and voluntarily in response to the climate change experienced. In many cases these adaptations will work perfectly but, for investments and activities with relatively long life-times (say more than 25 years) and for investments and activities that are sensitive to climate extremes, climate change requires increased planning and foresight. In these situations economic decision models can aid the decision-makers through providing well-founded bases for the decisions, as well as tools for prioritizations. In this report we describe the most common economic decision-models: cost-benefit analysis (CBA), cost-effectiveness analysis (CEA) and multi-criteria analysis (MCA). The descriptions will form a foundation for the continuing work on generating tools that can be useful for local decision-makers in their pursuit of coping with climate change within the Climatools programme

The Impact of Depression on Social Economic Decision Making

NARCIS (Netherlands)

Harlé, K.M.; Allen, J.J.B.; Sanfey, A.G.

2010-01-01

Although the role of emotion in social economic decision making has been increasingly recognized, the impact of mood disorders, such as depression, on such decisions has been surprisingly neglected. To address this gap, 15 depressed and 23 nondepressed individuals completed a well-known economic

Use of economic evaluation in decision making: evidence and recommendations for improvement.

Science.gov (United States)

Simoens, Steven

2010-10-22

Information about the value for money of a medicine as derived from an economic evaluation can be used for decision-making purposes by policy makers, healthcare payers, healthcare professionals and pharmaceutical companies. This article illustrates the use of economic evaluation by decision makers and formulates a number of recommendations to enhance the use of such evaluations for decision-making purposes. Over the last decades, there has been a substantial increase in the number of economic evaluations assessing the value for money of medicines. Economic evaluation is used by policy makers and healthcare payers to inform medicine pricing/reimbursement decisions in more and more countries. It is a suitable tool to evaluate medicines and to present information about their value for money to decision makers in a familiar format. In order to fully exploit the use of economic evaluation for decision-making purposes, researchers need to take care to conduct such economic evaluations according to methodologically sound principles. Additionally, researchers need to take into account the decision-making context. They need to identify the various objectives that decision makers pursue and discuss how decision makers can use study findings to attain these objectives. These issues require further attention from researchers, policy makers, healthcare payers, healthcare professionals and pharmaceutical companies with a view to optimizing the use of economic evaluation in decision making.

Effects of Age-related Differences in Empathy on Social Economic Decision-Making

OpenAIRE

Beadle, Janelle N.; Paradiso, Sergio; Kovach, Christopher; Polgreen, Linnea; Denburg, Natalie; Tranel, Daniel

2012-01-01

Background: The ways in which aging affects social economic decision-making is a central issue in the psychology of aging. To examine age-related differences in social economic decision-making as a function of empathy, 80 healthy volunteers participated in the Repeated Fixed Opponent Ultimatum Game (UG-R). Previous economic decision-making research has shown that in younger adults empathy is associated with prosocial behavior. The effects of empathy on older adult social economic decision-mak...

Decision tree analysis to evaluate dry cow strategies under UK conditions

NARCIS (Netherlands)

Berry, E.A.; Hogeveen, H.; Hillerton, J.E.

2004-01-01

Economic decisions on animal health strategies address the cost-benefit aspect along with animal welfare and public health concerns. Decision tree analysis at an individual cow level highlighted that there is little economic difference between the use of either dry cow antibiotic or an internal teat

Economic decision making and the application of nonparametric prediction models

Science.gov (United States)

Attanasi, E.D.; Coburn, T.C.; Freeman, P.A.

2008-01-01

Sustained increases in energy prices have focused attention on gas resources in low-permeability shale or in coals that were previously considered economically marginal. Daily well deliverability is often relatively small, although the estimates of the total volumes of recoverable resources in these settings are often large. Planning and development decisions for extraction of such resources must be areawide because profitable extraction requires optimization of scale economies to minimize costs and reduce risk. For an individual firm, the decision to enter such plays depends on reconnaissance-level estimates of regional recoverable resources and on cost estimates to develop untested areas. This paper shows how simple nonparametric local regression models, used to predict technically recoverable resources at untested sites, can be combined with economic models to compute regional-scale cost functions. The context of the worked example is the Devonian Antrim-shale gas play in the Michigan basin. One finding relates to selection of the resource prediction model to be used with economic models. Models chosen because they can best predict aggregate volume over larger areas (many hundreds of sites) smooth out granularity in the distribution of predicted volumes at individual sites. This loss of detail affects the representation of economic cost functions and may affect economic decisions. Second, because some analysts consider unconventional resources to be ubiquitous, the selection and order of specific drilling sites may, in practice, be determined arbitrarily by extraneous factors. The analysis shows a 15-20% gain in gas volume when these simple models are applied to order drilling prospects strategically rather than to choose drilling locations randomly. Copyright ?? 2008 Society of Petroleum Engineers.

Risk-based economic decision analysis of remediation options at a PCE-contaminated site

DEFF Research Database (Denmark)

Lemming, Gitte; Friis-Hansen, P.; Bjerg, Poul Løgstrup

2010-01-01

by the remediation activities. More attention is increasingly being given to these secondary environmental impacts when evaluating remediation options. This paper presents a methodology for an integrated economic decision analysis which combines assessments of remediation costs, health risk costs and potential...... at a downstream groundwater well. Potential environmental impacts on the local, regional and global scales due to the site remediation activities are evaluated using life cycle assessments (LCA). The potential impacts on health and environment are converted to monetary units using a simplified cost model. A case......Remediation methods for contaminated sites cover a wide range of technical solutions with different remedial efficiencies and costs. Additionally, they may vary in their secondary impacts on the environment i.e. the potential impacts generated due to emissions and resource use caused...

Strategic decision analysis applied to borehole seismology

International Nuclear Information System (INIS)

Menke, M.M.; Paulsson, B.N.P.

1994-01-01

Strategic Decision Analysis (SDA) is the evolving body of knowledge on how to achieve high quality in the decision that shapes an organization's future. SDA comprises philosophy, process concepts, methodology, and tools for making good decisions. It specifically incorporates many concepts and tools from economic evaluation and risk analysis. Chevron Petroleum Technology Company (CPTC) has applied SDA to evaluate and prioritize a number of its most important and most uncertain R and D projects, including borehole seismology. Before SDA, there were significant issues and concerns about the value to CPTC of continuing to work on borehole seismology. The SDA process created a cross-functional team of experts to structure and evaluate this project. A credible economic model was developed, discrete risks and continuous uncertainties were assessed, and an extensive sensitivity analysis was performed. The results, even applied to a very restricted drilling program for a few years, were good enough to demonstrate the value of continuing the project. This paper explains the SDA philosophy concepts, and process and demonstrates the methodology and tools using the borehole seismology project example. SDA is useful in the upstream industry not just in the R and D/technology decisions, but also in major exploration and production decisions. Since a major challenge for upstream companies today is to create and realize value, the SDA approach should have a very broad applicability

Arational heuristic model of economic decision making

OpenAIRE

Grandori, Anna

2010-01-01

The article discuss the limits of both the rational actor and the behavioral paradigms in explaining and guiding innovative decision making and outlines a model of economic decision making that in the course of being 'heuristic' (research and discovery oriented) is also 'rational' (in the broad sense of following correct reasoning and scientific methods, non 'biasing'). The model specifies a set of 'rational heuristics' for innovative decision making, for the various sub-processes of problem ...

Neuronal variability in orbitofrontal cortex during economic decisions.

Science.gov (United States)

Conen, Katherine E; Padoa-Schioppa, Camillo

2015-09-01

Neuroeconomic models assume that economic decisions are based on the activity of offer value cells in the orbitofrontal cortex (OFC), but testing this assertion has proven difficult. In principle, the decision made on a given trial should correlate with the stochastic fluctuations of these cells. However, this correlation, measured as a choice probability (CP), is small. Importantly, a neuron's CP reflects not only its individual contribution to the decision (termed readout weight), but also the intensity and the structure of correlated variability across the neuronal population (termed noise correlation). A precise mathematical relation between CPs, noise correlations, and readout weights was recently derived by Haefner and colleagues (Haefner RM, Gerwinn S, Macke JH, Bethge M. Nat Neurosci 16: 235-242, 2013) for a linear decision model. In this framework, concurrent measurements of noise correlations and CPs can provide quantitative information on how a population of cells contributes to a decision. Here we examined neuronal variability in the OFC of rhesus monkeys during economic decisions. Noise correlations had similar structure but considerably lower strength compared with those typically measured in sensory areas during perceptual decisions. In contrast, variability in the activity of individual cells was high and comparable to that recorded in other cortical regions. Simulation analyses based on Haefner's equation showed that noise correlations measured in the OFC combined with a plausible readout of offer value cells reproduced the experimental measures of CPs. In other words, the results obtained for noise correlations and those obtained for CPs taken together support the hypothesis that economic decisions are primarily based on the activity of offer value cells. Copyright © 2015 the American Physiological Society.

Computational intelligence paradigms in economic and financial decision making

CERN Document Server

Resta, Marina

2016-01-01

The book focuses on a set of cutting-edge research techniques, highlighting the potential of soft computing tools in the analysis of economic and financial phenomena and in providing support for the decision-making process. In the first part the textbook presents a comprehensive and self-contained introduction to the field of self-organizing maps, elastic maps and social network analysis tools and provides necessary background material on the topic, including a discussion of more recent developments in the field. In the second part the focus is on practical applications, with particular attention paid to budgeting problems, market simulations, and decision-making processes, and on how such problems can be effectively managed by developing proper methods to automatically detect certain patterns. The book offers a valuable resource for both students and practitioners with an introductory-level college math background.

Cognitive control and individual differences in economic ultimatum decision-making.

Directory of Open Access Journals (Sweden)

Wim De Neys

Full Text Available Much publicity has been given to the fact that people's economic decisions often deviate from the rational predictions of standard economic models. In the classic ultimatum game, for example, most people turn down financial gains by rejecting unequal monetary splits. The present study points to neglected individual differences in this debate. After participants played the ultimatum game we tested for individual differences in cognitive control capacity of the most and least economic responders. The key finding was that people who were higher in cognitive control, as measured by behavioral (Go/No-Go performance and neural (No-Go N2 amplitude markers, did tend to behave more in line with the standard models and showed increased acceptance of unequal splits. Hence, the cognitively highest scoring decision-makers were more likely to maximize their monetary payoffs and adhere to the standard economic predictions. Findings question popular claims with respect to the rejection of standard economic models and the irrationality of human economic decision-making.

Economics and psychology. The framing of decisions

OpenAIRE

Schilirò, Daniele

2016-01-01

In the Theory of Rational Decision Making the psychological aspects are set aside. This contribution seeks to point out the relevance of psychology into economic decisions. The essay treats the "framing of decisions", which is a pillar of Kahneman's behavioral theory. Framing must be considered a special case of the more general phenomenon of dependency from the representation. The best-known risky choice-framing problem, i.e. the "Asian Disease Problem", is shown where an essential aspect of...

Sensitivity analysis in economic evaluation: an audit of NICE current practice and a review of its use and value in decision-making.

Science.gov (United States)

Andronis, L; Barton, P; Bryan, S

2009-06-01

To determine how we define good practice in sensitivity analysis in general and probabilistic sensitivity analysis (PSA) in particular, and to what extent it has been adhered to in the independent economic evaluations undertaken for the National Institute for Health and Clinical Excellence (NICE) over recent years; to establish what policy impact sensitivity analysis has in the context of NICE, and policy-makers' views on sensitivity analysis and uncertainty, and what use is made of sensitivity analysis in policy decision-making. Three major electronic databases, MEDLINE, EMBASE and the NHS Economic Evaluation Database, were searched from inception to February 2008. The meaning of 'good practice' in the broad area of sensitivity analysis was explored through a review of the literature. An audit was undertaken of the 15 most recent NICE multiple technology appraisal judgements and their related reports to assess how sensitivity analysis has been undertaken by independent academic teams for NICE. A review of the policy and guidance documents issued by NICE aimed to assess the policy impact of the sensitivity analysis and the PSA in particular. Qualitative interview data from NICE Technology Appraisal Committee members, collected as part of an earlier study, were also analysed to assess the value attached to the sensitivity analysis components of the economic analyses conducted for NICE. All forms of sensitivity analysis, notably both deterministic and probabilistic approaches, have their supporters and their detractors. Practice in relation to univariate sensitivity analysis is highly variable, with considerable lack of clarity in relation to the methods used and the basis of the ranges employed. In relation to PSA, there is a high level of variability in the form of distribution used for similar parameters, and the justification for such choices is rarely given. Virtually all analyses failed to consider correlations within the PSA, and this is an area of concern

The Effect of Affect on Economic and Strategic Decision Making.

OpenAIRE

Benjamin E. Hermalin and Alice M. Isen.

1999-01-01

The standard economic model of decision making assumes a decision maker makes her choices to maximize her utility or happiness. Her current emotional state is not explicitly considered. Yet there is a large psychological literature that shows that current emotional state, in particular positive affect, has a significant effect on decision making. This paper offers a way to incorporate this insight from psychology into economic modeling. Moreover, this paper shows that this simple insight can ...

Background effects of emergencies on indicators of economic analysis of enterprise economic activity

Directory of Open Access Journals (Sweden)

K.Yu. Polyak

2017-03-01

Full Text Available The paper deals with the study of scientific works on the issue of formation and development of organizational and methodological regulations of accounting and analytical support of the economic activity of an enterprise in emergencies, which led to the conclusion about the complex character of the study of theory, methodology and economic analysis of enterprises in various sectors of national economy. The author studies the approaches to the nature and methods of economic analysis that resulted in the presentation of instructional techniques to the economic structure. In assessing the consequences of emergencies, it is necessary to determine their impact on the indices of economic analysis; so, there was the need to define areas resulting index changes as a result of emergency situations by identifying its components which may affect emergencies. After analyzing the data, it was found that the consequences of emergency situations affecting the indices of business analysis and can lead to changes in management decisions of internal and external users.

Irrational Career Decision-Making: Connecting Behavioural Economics and Career Development

Science.gov (United States)

Redekopp, Dave E.

2017-01-01

Very frequently, students and clients do not do what they say they will do. Decisions and plans made in counselling sessions are often not enacted. The career development field may be better able to address the chasm between rational decisions and actual behaviour by applying the findings of behavioural economics. Behavioural economics research is…

The neural basis of economic decision-making in the ultimatum game

NARCIS (Netherlands)

Sanfey, A.G.; Rilling, J.K.; Aronson, J.A.; Nystrom, L.E.; Cohen, J.D.

2003-01-01

The nascent field of neuroeconomics seeks to ground economic decision-making in the biological substrate of the brain. We used functional magnetic resonance imaging of Ultimatum Game players to investigate neural substrates of cognitive and emotional processes involved in economic decision-making.

Advanced Fuel Cycle Economic Sensitivity Analysis

Energy Technology Data Exchange (ETDEWEB)

David Shropshire; Kent Williams; J.D. Smith; Brent Boore

2006-12-01

A fuel cycle economic analysis was performed on four fuel cycles to provide a baseline for initial cost comparison using the Gen IV Economic Modeling Work Group G4 ECON spreadsheet model, Decision Programming Language software, the 2006 Advanced Fuel Cycle Cost Basis report, industry cost data, international papers, the nuclear power related cost study from MIT, Harvard, and the University of Chicago. The analysis developed and compared the fuel cycle cost component of the total cost of energy for a wide range of fuel cycles including: once through, thermal with fast recycle, continuous fast recycle, and thermal recycle.

Health Economics as Rhetoric: The Limited Impact of Health Economics on Funding Decisions in Four European Countries.

Science.gov (United States)

Franken, Margreet; Heintz, Emelie; Gerber-Grote, Andreas; Raftery, James

2016-12-01

A response to the challenge of high-cost treatments in health care has been economic evaluation. Cost-effectiveness analysis presented as cost per quality-adjusted life-years gained has been controversial, raising heated support and opposition. To assess the impact of economic evaluation in decisions on what to fund in four European countries and discuss the implications of our findings. We used a protocol to review the key features of the application of economic evaluation in reimbursement decision making in England, Germany, the Netherlands, and Sweden, reporting country-specific highlights. Although the institutions and processes vary by country, health economic evaluation has had limited impact on restricting access of controversial high-cost drugs. Even in those countries that have gone the furthest, ways have been found to avoid refusing to fund high-cost drugs for particular diseases including cancer, multiple sclerosis, and orphan diseases. Economic evaluation may, however, have helped some countries to negotiate price reductions for some drugs. It has also extended to the discussion of clinical effectiveness to include cost. The differences in approaches but similarities in outcomes suggest that health economic evaluation be viewed largely as rhetoric (in D.N. McCloskey's terms in The Rhetoric of Economics, 1985). This is not to imply that economics had no impact: rather that it usually contributed to the discourse in ways that differed by country. The reasons for this no doubt vary by perspective, from political science to ethics. Economic evaluation may have less to do with rationing or denial of medical treatments than to do with expanding the discourse used to discuss such issues. Copyright © 2016 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

Health economics and outcomes methods in risk-based decision-making for blood safety.

Science.gov (United States)

Custer, Brian; Janssen, Mart P

2015-08-01

Analytical methods appropriate for health economic assessments of transfusion safety interventions have not previously been described in ways that facilitate their use. Within the context of risk-based decision-making (RBDM), health economics can be important for optimizing decisions among competing interventions. The objective of this review is to address key considerations and limitations of current methods as they apply to blood safety. Because a voluntary blood supply is an example of a public good, analyses should be conducted from the societal perspective when possible. Two primary study designs are recommended for most blood safety intervention assessments: budget impact analysis (BIA), which measures the cost to implement an intervention both to the blood operator but also in a broader context, and cost-utility analysis (CUA), which measures the ratio between costs and health gain achieved, in terms of reduced morbidity and mortality, by use of an intervention. These analyses often have important limitations because data that reflect specific aspects, for example, blood recipient population characteristics or complication rates, are not available. Sensitivity analyses play an important role. The impact of various uncertain factors can be studied conjointly in probabilistic sensitivity analyses. The use of BIA and CUA together provides a comprehensive assessment of the costs and benefits from implementing (or not) specific interventions. RBDM is multifaceted and impacts a broad spectrum of stakeholders. Gathering and analyzing health economic evidence as part of the RBDM process enhances the quality, completeness, and transparency of decision-making. © 2015 AABB.

Web-Based Group Decision Support System: an Economic Application

Directory of Open Access Journals (Sweden)

Ion ISTUDOR

2010-01-01

Full Text Available Decision Support Systems (DSS form a specific class of computerized information systems that support business and managerial decision-making activities. Making the right decision in business primarily depends on the quality of data. It also depends on the ability to analyze the data with a view to identifying trends that can suggest solutions and strategies. A “cooperative” decision support system means the data are collected, analyzed and then provided to a human agent who can help the system to revise or refine the data. It means that both a human component and computer component work together to come up with the best solution. This paper describes the usage of a software product (Vanguard System to a specific economic application (evaluating the financial risk assuming that the rate of the economic profitability can be under the value of the interest rate.

Household consumption, female employment and fertility decisions; A microeconometric analysis

NARCIS (Netherlands)

Kalwij, A.S.

1999-01-01

This thesis is mainly concerned with a simultaneous analysis of the economic determinants of female employment and fertility decisions on a household level in the Netherlands. In particular, this thesis is interested in the role of the employment decisions of women in the observed behavior that

Applying rigorous decision analysis methodology to optimization of a tertiary recovery project

International Nuclear Information System (INIS)

Wackowski, R.K.; Stevens, C.E.; Masoner, L.O.; Attanucci, V.; Larson, J.L.; Aslesen, K.S.

1992-01-01

This paper reports that the intent of this study was to rigorously look at all of the possible expansion, investment, operational, and CO 2 purchase/recompression scenarios (over 2500) to yield a strategy that would maximize net present value of the CO 2 project at the Rangely Weber Sand Unit. Traditional methods of project management, which involve analyzing large numbers of single case economic evaluations, was found to be too cumbersome and inaccurate for an analysis of this scope. The decision analysis methodology utilized a statistical approach which resulted in a range of economic outcomes. Advantages of the decision analysis methodology included: a more organized approach to classification of decisions and uncertainties; a clear sensitivity method to identify the key uncertainties; an application of probabilistic analysis through the decision tree; and a comprehensive display of the range of possible outcomes for communication to decision makers. This range made it possible to consider the upside and downside potential of the options and to weight these against the Unit's strategies. Savings in time and manpower required to complete the study were also realized

Evaluating the quality and use of economic data in decisions about essential medicines.

Science.gov (United States)

Moucheraud, Corrina; Wirtz, Veronika J; Reich, Michael R

2015-10-01

To evaluate the quality of economic data provided in applications to the World Health Organization (WHO) Model List of Essential Medicines and to evaluate the role of these data in decision-making by the expert committee that considers the applications. We analysed applications submitted to the WHO Expert Committee on the Selection and Use of Essential Medicines between 2002 and 2013. The completeness of data on the price and cost-effectiveness of medicines was extracted from application documents and coded using a four-point scale. We recorded whether or not the expert committee discussed economic information and the outcomes of each application. Associations between the completeness of economic data and application outcomes were assessed using χ 2 tests. The expert committee received 134 applications. Only eight applications (6%) included complete price data and economic evaluation data. Many applicants omitted or misinterpreted the economic evaluation section of the application form. Despite the lack of economic data, all applications were reviewed by the committee. There was no significant association between the completeness of economic information and application outcomes. The expert committee tried to address information gaps in applications by further review and analysis of data related to the application. The World Health Organization should revise the instructions to applicants on economic data requirements; develop new mechanisms to assist applicants in completing the application process; and define methods for the use of economic data in decision-making.

An economic and neuroscientific comparison of strategic decision making

NARCIS (Netherlands)

Michl, T.; Taing, S.; Day, M.; Stanton, A.; Welpe, I.M.

2010-01-01

Economic decision- making is traditionally based on the assumptions of the predominant existence of Homo economicus (Latin: economic human being). The framework of this theory is known as the Rational Choice Theory (RC Theory). It includes assumptions such as utility maximization, opportunism,

Metabolic state alters economic decision making under risk in humans.

Directory of Open Access Journals (Sweden)

Mkael Symmonds

2010-06-01

Full Text Available Animals' attitudes to risk are profoundly influenced by metabolic state (hunger and baseline energy stores. Specifically, animals often express a preference for risky (more variable food sources when below a metabolic reference point (hungry, and safe (less variable food sources when sated. Circulating hormones report the status of energy reserves and acute nutrient intake to widespread targets in the central nervous system that regulate feeding behaviour, including brain regions strongly implicated in risk and reward based decision-making in humans. Despite this, physiological influences per se have not been considered previously to influence economic decisions in humans. We hypothesised that baseline metabolic reserves and alterations in metabolic state would systematically modulate decision-making and financial risk-taking in humans.We used a controlled feeding manipulation and assayed decision-making preferences across different metabolic states following a meal. To elicit risk-preference, we presented a sequence of 200 paired lotteries, subjects' task being to select their preferred option from each pair. We also measured prandial suppression of circulating acyl-ghrelin (a centrally-acting orexigenic hormone signalling acute nutrient intake, and circulating leptin levels (providing an assay of energy reserves. We show both immediate and delayed effects on risky decision-making following a meal, and that these changes correlate with an individual's baseline leptin and changes in acyl-ghrelin levels respectively.We show that human risk preferences are exquisitely sensitive to current metabolic state, in a direction consistent with ecological models of feeding behaviour but not predicted by normative economic theory. These substantive effects of state changes on economic decisions perhaps reflect shared evolutionarily conserved neurobiological mechanisms. We suggest that this sensitivity in human risk-preference to current metabolic state has

Understanding consumer decisions using behavioral economics.

Science.gov (United States)

Zandstra, Elizabeth H; Miyapuram, Krishna P; Tobler, Philippe N

2013-01-01

Consumers make many decisions in everyday life involving finances, food, and health. It is known from behavioral economics research that people are often driven by short-term gratification, that is, people tend to choose the immediate, albeit smaller reward. But choosing the delayed reward, that is, delaying the gratification, can actually be beneficial. How can we motivate consumers to resist the "now" and invest in their future, leading to sustainable or healthy habits? We review recent developments from behavioral and neuroimaging studies that are relevant for understanding consumer decisions. Further, we present results from our field research that examined whether we can increase the perceived value of a (delayed) environmental benefit using tailored communication, that is, change the way it is framed. More specifically, we investigated whether we can boost the value of an abstract, long-term "green" claim of a product by expressing it as a concrete, short-term benefit. This is a new application area for behavioral economics. Copyright © 2013 Elsevier B.V. All rights reserved.

The role of decision analytic modeling in the health economic assessment of spinal intervention.

Science.gov (United States)

Edwards, Natalie C; Skelly, Andrea C; Ziewacz, John E; Cahill, Kevin; McGirt, Matthew J

2014-10-15

Narrative review. To review the common tenets, strengths, and weaknesses of decision modeling for health economic assessment and to review the use of decision modeling in the spine literature to date. For the majority of spinal interventions, well-designed prospective, randomized, pragmatic cost-effectiveness studies that address the specific decision-in-need are lacking. Decision analytic modeling allows for the estimation of cost-effectiveness based on data available to date. Given the rising demands for proven value in spine care, the use of decision analytic modeling is rapidly increasing by clinicians and policy makers. This narrative review discusses the general components of decision analytic models, how decision analytic models are populated and the trade-offs entailed, makes recommendations for how users of spine intervention decision models might go about appraising the models, and presents an overview of published spine economic models. A proper, integrated, clinical, and economic critical appraisal is necessary in the evaluation of the strength of evidence provided by a modeling evaluation. As is the case with clinical research, all options for collecting health economic or value data are not without their limitations and flaws. There is substantial heterogeneity across the 20 spine intervention health economic modeling studies summarized with respect to study design, models used, reporting, and general quality. There is sparse evidence for populating spine intervention models. Results mostly showed that interventions were cost-effective based on $100,000/quality-adjusted life-year threshold. Spine care providers, as partners with their health economic colleagues, have unique clinical expertise and perspectives that are critical to interpret the strengths and weaknesses of health economic models. Health economic models must be critically appraised for both clinical validity and economic quality before altering health care policy, payment strategies, or

Decision analysis multicriteria analysis

International Nuclear Information System (INIS)

Lombard, J.

1986-09-01

The ALARA procedure covers a wide range of decisions from the simplest to the most complex one. For the simplest one the engineering judgement is generally enough and the use of a decision aiding technique is therefore not necessary. For some decisions the comparison of the available protection option may be performed from two or a few criteria (or attributes) (protection cost, collective dose,...) and the use of rather simple decision aiding techniques, like the Cost Effectiveness Analysis or the Cost Benefit Analysis, is quite enough. For the more complex decisions, involving numerous criteria or for decisions involving large uncertainties or qualitative judgement the use of these techniques, even the extended cost benefit analysis, is not recommended and appropriate techniques like multi-attribute decision aiding techniques are more relevant. There is a lot of such particular techniques and it is not possible to present all of them. Therefore only two broad categories of multi-attribute decision aiding techniques will be presented here: decision analysis and the outranking analysis

Integrated agro-hydrological modelling and economic analysis of BMPs to support decision making and policy design

Science.gov (United States)

Maroy, E.; Rousseau, A. N.; Hallema, D. W.

2012-12-01

With recent efforts and increasing control over point source pollution of freshwater, agricultural non-point pollution sources have become responsible for most of sediment and nutrient loads in North American water systems. Environmental and agricultural agencies have recognised the need for reducing eutrophication and have developed various policies to compel or encourage producers to best management practices (BMPs). Addressing diffuse pollution is challenging considering the complex and cumulative nature of transport processes, high variability in space and time, and prohibitive costs of distributed water quality monitoring. Many policy options exist to push producers to adopt environmentally desirable behaviour while keeping their activity viable, and ensure equitable costs to consumers and tax payers. On the one hand, economic instruments (subsidies, taxes, water quality markets) are designed to maximize cost-effectiveness, so that farmers optimize their production for maximum profit while implementing BMPs. On the other hand, emission standards or regulation of inputs are often easier and less costly to implement. To study economic and environmental impacts of such policies, a distributed modelling approach is needed to deal with the complexity of the system and the large environmental and socio-economic data requirements. Our objective is to integrate agro-hydrological modelling and economic analysis to support decision and policy making processes of BMP implementation. The integrated modelling system GIBSI was developed in an earlier study within the Canadian WEBs project (Watershed Evaluation of BMPs) to evaluate the influence of BMPs on water quality. The case study involved 30 and 15 year records of discharge and water quality measurements respectively, in the Beaurivage River watershed (Quebec, Canada). GIBSI provided a risk-based overview of the impact of BMPs (including vegetated riparian buffer strips, precision slurry application, conversion to

Multi-criteria decision analysis for use in transport decision making

DEFF Research Database (Denmark)

the recent years that besides the social costs and benefits associated with transport other impacts that are more difficult to monetise should also have influence on the decision making process. This is in many developed countries realised in the transport planning, which takes into account a wide range......, however, commonly agreed that the final decision making concerning transport infrastructure projects in many cases will depend on other aspects besides the monetary ones assessed in a socio-economic analysis. Nevertheless, an assessment framework such as the Danish one (DMT, 2003) does not provide any...... specific guidelines on how to include the strategic impacts; it merely suggests describing the impacts verbally and keeping them in mind during the decision process. A coherent, well-structured, flexible, straight forward evaluation method, taking into account all the requirements of a transport...

Decision making analysis of walnut seedling production on a small ...

African Journals Online (AJOL)

The decision has to be made between those three alternatives aiming at achievement of optimal/best economic result for the family farm. Summarizing results obtained from the decision tree, simulation and sensitivity analysis, the optimal solution for the family farm should be to continue production of walnut seedlings with ...

Emotions and Emotion Regulation in Economic Decision Making

OpenAIRE

Astor, Philipp J.

2013-01-01

By employing the methodology of experimental economics, the thesis examines the influence of emotions on decision making in electronic auction markets. Subjects' emotional processes are measured by psychophysiological indicators, helping to decipher the coherence of information, emotion (regulation) and decision making. Four chapters build the main body of the thesis and all are constructed similarly: introduction, design, method, results, limitations, theoretical and managerial implications.

Effects of age-related differences in empathy on social economic decision-making.

Science.gov (United States)

Beadle, Janelle N; Paradiso, Sergio; Kovach, Christopher; Polgreen, Linnea; Denburg, Natalie L; Tranel, Daniel

2012-05-01

The ways in which aging affects social economic decision-making is a central issue in the psychology of aging. To examine age-related differences in social economic decision-making as a function of empathy, 80 healthy volunteers participated in the Repeated Fixed Opponent Ultimatum Game (UG-R). Previous economic decision-making research has shown that in younger adults empathy is associated with prosocial behavior. The effects of empathy on older adult social economic decision-making are not well understood. On each of 20 consecutive trials in the UG-R, one player ("Proposer") splits $10 with another player ("Responder") who chooses either to accept (whereby both receive the proposed division) or reject (whereby neither receives anything). Trait cognitive and emotional empathy were measured using the Interpersonal Reactivity Index. UG-R data were examined as a function of age and cognitive empathy. For "unfair" offers (i.e. offers less than $5), older Responders with high cognitive empathy showed less prosocial behavior and obtained greater payoffs than younger Responders with high cognitive empathy. High levels of cognitive empathy may differentially affect economic decision-making behavior in younger and older adults. For older adults, high cognitive empathy may play a role in obtaining high financial payoffs while for younger adults it may instead be involved in facilitating social relationships.

Using fuzzy mathematics for decision making in economics

Directory of Open Access Journals (Sweden)

Pavkov Ivan

2012-01-01

Full Text Available Traditionally, economic models are based on classical mathematics and Aristotelian two-valued logic. Nevertheless, fuzzy mathematics, as a tool for modeling some types of uncertainties and incomplete phenomena, is a more appropriate framework for modeling in economics. New approach has resulted in approximate reasoning and fuzzy control systems, which proved to be an efficient tool for decision making in fuzzy environment.

Socio-economic analysis in the transport sector

DEFF Research Database (Denmark)

an important element in the political decision process. The analysis provides information about how the society’s resources – from an economic viewpoint – are used in the best possible way, and how costs and benefits are distributed between e.g. the state, the users and the environment. The society does......This compendium is intended to be a tool for students in conducting socio-economic appraisals in the transport sector following the recommendations made by the Danish Manual for Socio-economic Appraisal (DMT, 2003). The appraisal process is in this compendium outlined as a step-by-step process...

Exploring the Options: Teaching Economic Decision-Making with Poetry

Science.gov (United States)

Johnson, Theresa L.

2012-01-01

High-stakes standardized tests in reading and limited instructional time are two powerful disincentives for teaching economics in the elementary classroom. In this article, integrating instruction in poetry and economic decision-making is presented as one way to maximize the use of scarce instructional time. Following a brief introduction to the…

The Use of Economic Evidence to Inform Drug Pricing Decisions in Jordan.

Science.gov (United States)

Hammad, Eman A

2016-01-01

Drug pricing is an example of a priority setting in a developing country with official requirements for the use of cost-effectiveness (CE) evidence. To describe the role of economic evidence in drug pricing decisions in Jordan. A prospective review of all applications submitted between November 2013 and May 2015 to the Jordan Food and Drug Association's drug pricing committee was carried out. All applications that involved requests for CE evidence were reviewed. Details on the type of study, the extent, and whether the evidence submitted was part of the formal deliberations were extracted and summarized. The committee reviewed a total of 1608 drug pricing applications over the period of the study. CE evidence was requested in only 11 applications. The submitted evidence was of limited use to the committee due to concerns about quality, relevance of studies, and lack of pharmacoeconomic expertise. There were also no clear rules describing how CE would inform pricing decisions. Limited local data and health economic experience were the main barriers to the use of economic evidence in drug pricing decisions in Jordan. In addition, there are no official rules describing the elements and process by which the CE evidence would inform drug pricing decisions. This study summarized accumulated observations for the current use of economic evaluations and evidence-based decision making in Jordan. Recommendations have been proposed to applicants and key decision makers to enhance the role of economic evidence in influencing health policies and evidence-based decision making across priority settings. Copyright © 2016 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

Effects of Age-related Differences in Empathy on Social Economic Decision-Making

Science.gov (United States)

Beadle, Janelle N.; Paradiso, Sergio; Kovach, Christopher; Polgreen, Linnea; Denburg, Natalie; Tranel, Daniel

2012-01-01

Background The ways in which aging affects social economic decision-making is a central issue in the psychology of aging. To examine age-related differences in social economic decision-making as a function of empathy, 80 healthy volunteers participated in the Repeated Fixed Opponent Ultimatum Game (UG-R). Previous economic decision making research has shown that in younger adults empathy is associated with prosocial behavior. The effects of empathy on older adult social economic decision-making are not well understood. Methods On each of 20 consecutive trials in the UG-R, one player (“Proposer”) splits ten dollars with another player (“Responder”) who chooses either to accept (whereby both receive the proposed division) or reject (whereby neither receives anything). Trait cognitive and emotional empathy were measured using the Interpersonal Reactivity Index. Results UG-R data were examined as a function of age and cognitive empathy. For unfair offers (i.e., offers less than $5), older Responders with high cognitive empathy showed less prosocial behavior and obtained greater payoffs than younger Responders with high cognitive empathy. Conclusions High levels of cognitive empathy may differentially affect economic decision making behavior in younger and older adults. For older adults, high cognitive empathy may be involved in obtaining high financial payoffs while for younger adults it may instead facilitate social relationships. PMID:22237008

Decision tree analysis to evaluate dry cow strategies under UK conditions

OpenAIRE

Berry, E.A.; Hogeveen, H.; Hillerton, J.E.

2005-01-01

Economic decisions on animal health strategies address the cost-benefit aspect along with animal welfare and public health concerns. Decision tree analysis at an individual cow level highlighted that there is little economic difference between the use of either dry cow antibiotic or an internal teat sealant in preventing a new intramammary infection in a cow free of infection in all quarters of the mammary gland at drying off. However, a potential net loss of over pound20 per cow might occur ...

Behavioral economics and regulatory analysis.

Science.gov (United States)

Robinson, Lisa A; Hammitt, James K

2011-09-01

Behavioral economics has captured the interest of scholars and the general public by demonstrating ways in which individuals make decisions that appear irrational. While increasing attention is being focused on the implications of this research for the design of risk-reducing policies, less attention has been paid to how it affects the economic valuation of policy consequences. This article considers the latter issue, reviewing the behavioral economics literature and discussing its implications for the conduct of benefit-cost analysis, particularly in the context of environmental, health, and safety regulations. We explore three concerns: using estimates of willingness to pay or willingness to accept compensation for valuation, considering the psychological aspects of risk when valuing mortality-risk reductions, and discounting future consequences. In each case, we take the perspective that analysts should avoid making judgments about whether values are "rational" or "irrational." Instead, they should make every effort to rely on well-designed studies, using ranges, sensitivity analysis, or probabilistic modeling to reflect uncertainty. More generally, behavioral research has led some to argue for a more paternalistic approach to policy analysis. We argue instead for continued focus on describing the preferences of those affected, while working to ensure that these preferences are based on knowledge and careful reflection. © 2011 Society for Risk Analysis.

Health economics and outcomes methods in risk-based decision-making for blood safety

NARCIS (Netherlands)

Custer, Brian; Janssen, Mart P.

2015-01-01

Analytical methods appropriate for health economic assessments of transfusion safety interventions have not previously been described in ways that facilitate their use. Within the context of risk-based decision-making (RBDM), health economics can be important for optimizing decisions among competing

THE ROLE OF BEHAVIORAL ECONOMICS IN EXPLAINING CONSUMPTION DECISION

Directory of Open Access Journals (Sweden)

Mihaela Andreea STROE

2015-07-01

Full Text Available The new economic approach starts from the idea that the individual does not need food, but feels the need to feed, or do not require newspapers, but feels the need of information. In this way, those who changes are not human preferences, but the way we satisfy them. At this stage of the paper, we explain the inconsistency in consumer preferences and the exceptions to the standard theory by making light upon what is called in behavioral economics: the effects of property, loss aversion and framing effects. In which concerns the standard economic model, it seems that there are discrepancies between objective measures of sources of comfort / discomfort and measures reported subjective sensations. Many defenders of classical model would argue that the measures are not reported subjective feelings of economic phenomena and therefore are not of interest to economists. However, when such feelings and sensations affect or may affect future decisions, things become relevant for the economy. Limited Rationality implies both that the agent is imperfectly informed decision-making in a complex and dynamic environment, and a limited ability processing.

Risk analysis for CHP decision making within the conditions of an open electricity market

International Nuclear Information System (INIS)

Al-Mansour, Fouad; Kozuh, Mitja

2007-01-01

Decision making under uncertainty is a difficult task in most areas. Investment decisions for combined heat and power production (CHP) are certainly one of the areas where it is difficult to find an optimal solution since the payback period is several years and parameters change due to different perturbing factors of economic and mostly political nature. CHP is one of the most effective measures for saving primary energy and reduction of greenhouse gas emissions. The implementation of EU directives on the promotion of cogeneration based on useful heat demand in the internal energy market will accelerate CHP installation. The expected number of small CHP installations will be very high in the near future. A quick, reliable and simple tool for economic evaluation of small CHP systems is required. Since evaluation is normally made by sophisticated economic computer models which are rather expensive, a simple point estimate economic model was developed which was later upgraded by risk methodology to give more informative results for better decision making. This paper presents a reliable computer model entitled 'Computer program for economic evaluation analysis of CHP' as a tool for analysis and economic evaluation of small CHP systems with the aim of helping the decision maker. The paper describes two methods for calculation of the sensitivity of the economic results to changes of input parameters and the uncertainty of the results: the classic/static method and the risk method. The computer program uses risk methodology by applying RISK software on an existing conventional economic model. The use of risk methodology for economic evaluation can improve decisions by incorporating all possible information (knowledge), which cannot be done in the conventional economic model due to its limitations. The methodology was tested on the case of a CHP used in a smaller hospital

Decision-theoretic approaches to non-knowledge in economics

OpenAIRE

Svetlova, Ekaterina; van Elst, Henk

2014-01-01

We review two strands of conceptual approaches to the formal representation of a decision maker's non-knowledge at the initial stage of a static one-person, one-shot decision problem in economic theory. One focuses on representations of non-knowledge in terms of probability measures over sets of mutually exclusive and exhaustive consequence-relevant states of Nature, the other deals with unawareness of potentially important events by means of sets of states that are less complete than the ful...

Health Economic Data in Reimbursement of New Medical Technologies: Importance of the Socio-Economic Burden as a Decision-Making Criterion.

Science.gov (United States)

Iskrov, Georgi; Dermendzhiev, Svetlan; Miteva-Katrandzhieva, Tsonka; Stefanov, Rumen

2016-01-01

Assessment and appraisal of new medical technologies require a balance between the interests of different stakeholders. Final decision should take into account the societal value of new therapies. This perspective paper discusses the socio-economic burden of disease as a specific reimbursement decision-making criterion and calls for the inclusion of it as a counterbalance to the cost-effectiveness and budget impact criteria. Socio-economic burden is a decision-making criterion, accounting for diseases, for which the assessed medical technology is indicated. This indicator is usually researched through cost-of-illness studies that systematically quantify the socio-economic burden of diseases on the individual and on the society. This is a very important consideration as it illustrates direct budgetary consequences of diseases in the health system and indirect costs associated with patient or carer productivity losses. By measuring and comparing the socio-economic burden of different diseases to society, health authorities and payers could benefit in optimizing priority setting and resource allocation. New medical technologies, especially innovative therapies, present an excellent case study for the inclusion of socio-economic burden in reimbursement decision-making. Assessment and appraisal have been greatly concentrated so far on cost-effectiveness and budget impact, marginalizing all other considerations. In this context, data on disease burden and inclusion of explicit criterion of socio-economic burden in reimbursement decision-making may be highly beneficial. Realizing the magnitude of the lost socio-economic contribution resulting from diseases in question could be a reasonable way for policy makers to accept a higher valuation of innovative therapies.

Effects of approach and withdrawal motivation on interactive economic decisions

NARCIS (Netherlands)

Harle, Katia; Sanfey, A.G.

2010-01-01

Although recent economic models of human decision making have recognised the role of emotion as an important biasing factor, the impact of incidental emotion on decisions has remained poorly explored. To address this question, we jointly explored the role of emotional valence (i.e., positive vs.

The BCD of response time analysis in experimental economics.

Science.gov (United States)

Spiliopoulos, Leonidas; Ortmann, Andreas

2018-01-01

For decisions in the wild, time is of the essence. Available decision time is often cut short through natural or artificial constraints, or is impinged upon by the opportunity cost of time. Experimental economists have only recently begun to conduct experiments with time constraints and to analyze response time (RT) data, in contrast to experimental psychologists. RT analysis has proven valuable for the identification of individual and strategic decision processes including identification of social preferences in the latter case, model comparison/selection, and the investigation of heuristics that combine speed and performance by exploiting environmental regularities. Here we focus on the benefits, challenges, and desiderata of RT analysis in strategic decision making. We argue that unlocking the potential of RT analysis requires the adoption of process-based models instead of outcome-based models, and discuss how RT in the wild can be captured by time-constrained experiments in the lab. We conclude that RT analysis holds considerable potential for experimental economics, deserves greater attention as a methodological tool, and promises important insights on strategic decision making in naturally occurring environments.

Applying Bayesian decision theory to assess reprocessing economic and social cost-benefits

International Nuclear Information System (INIS)

Heising, C.D.

1978-01-01

Bayesian decision theory, combined with conventional systems analysis techniques into the discipline called decision analysis, has been applied in this work to assess economic and social cost-benefits associated with reprocessing nuclear fuel. Particular attention in this paper is given to the models which have been developed to place numerical estimates in dollar terms on the three categories of social risks that have been identified with reprocessing. These categories include: (1) health, environment, and safety, (2) diversion of fissile material, including sabotage, terrorist acts, and subnational diversion, and (3) nuclear proliferation, defined to be a diversion at the national level to obtain weapons capability. The emphasis is placed on the third category, as proliferation risk has not been treated elsewhere in a quantitative fashion; most arguments have in the main been qualitative conjectures put forth by political scientists

Economic Decision-Making for Coal Power Flexibility Retrofitting and Compensation in China

Directory of Open Access Journals (Sweden)

Chunning Na

2018-01-01

Full Text Available In China, in order to integrate more renewable energy into the power grid, coal power flexibility retrofitting is imperative. This paper elaborates a generic method for estimating the flexibility potential from the rapid ramp rate and peak shaving operation using nonlinear programming, and defines three flexibility elastic coefficients to quantify the retrofitted targets. The optimized range of the retrofitted targets determined by the flexibility elastic coefficients have a reference significance on coal power flexibility retrofitting. Then, in order to enable economic decisions for coal power flexibility retrofitting, we address a profit maximizing issue regarding optimization decisions for coal power flexibility retrofitting under an assumption of perfect competition, further analyzing the characteristic roots of marginal cost equal to marginal revenue. The rationality of current compensation standards for peak shaving in China can also be judged in the analysis. The case study results show that economic decision-making depends on the compensation standard and the peak shaving depth and time. At a certain peak shaving depth and time, with rational compensation standard power plants are willing to carry out coal power flexibility retrofitting. The current compensation standard in Northeast China is high enough to carry out coal power flexibility retrofitting. These research conclusions have theoretical significance for China’s peak shaving compensation standards formulation.

Decision making from economic and signal detection perspectives: development of an integrated framework

Science.gov (United States)

Lynn, Spencer K.; Wormwood, Jolie B.; Barrett, Lisa F.; Quigley, Karen S.

2015-01-01

Behavior is comprised of decisions made from moment to moment (i.e., to respond one way or another). Often, the decision maker cannot be certain of the value to be accrued from the decision (i.e., the outcome value). Decisions made under outcome value uncertainty form the basis of the economic framework of decision making. Behavior is also based on perception—perception of the external physical world and of the internal bodily milieu, which both provide cues that guide decision making. These perceptual signals are also often uncertain: another person's scowling facial expression may indicate threat or intense concentration, alternatives that require different responses from the perceiver. Decisions made under perceptual uncertainty form the basis of the signals framework of decision making. Traditional behavioral economic approaches to decision making focus on the uncertainty that comes from variability in possible outcome values, and typically ignore the influence of perceptual uncertainty. Conversely, traditional signal detection approaches to decision making focus on the uncertainty that arises from variability in perceptual signals and typically ignore the influence of outcome value uncertainty. Here, we compare and contrast the economic and signals frameworks that guide research in decision making, with the aim of promoting their integration. We show that an integrated framework can expand our ability to understand a wider variety of decision-making behaviors, in particular the complexly determined real-world decisions we all make every day. PMID:26217275

Can Neuroscience Assist Us in Constructing Better Patterns of Economic Decision-Making?

Directory of Open Access Journals (Sweden)

George Lăzăroiu

2017-10-01

Full Text Available We draw on outstanding research (Sanfey et al., 2006; McCabe, 2008; Bernheim, 2009; Camerer, 2013; Radu and McClure, 2013; Declerck and Boone, 2016 to substantiate that neuroeconomics covers the investigation of the biological microfoundations of economic cognition and economic conduct, attempts to prove that a superior grasp of how choices are made brings about superior expectations regarding which options are selected, preserves the strictness of economic analysis in defining value-based decision, and associates imaging techniques with economic pattern to explain how individuals decide on a strategy taking into account various possible choices. Neuroeconomics is adequately prepared to regulate the notion of how choices are determined by mental states. The position that will be elaborated in this article is that neuroeconomic patterns are enabled and enhanced in descriptive capacity by psychological outcomes and substantiated in biological processes. Advancement in neuroeconomics takes place when outcomes from distinct procedures are coherent with an ordinary mechanistic clarification of what generates choice, construed by a computational pattern. We will develop this point further by proving that economics improves the concerted effort of neuroeconomics by using its observations in the various results that may stem from the planned and market interplays of diverse participants, and via a series of accurate, explicit, mathematical patterns to construe such interplays and results. Neuroeconomics experiments employ a mixture of brain imaging/stimulation tests advanced in the cognitive neurosciences and microeconomic systems/game theory tests advanced in the economic sciences. Our analyses indicate that neuroeconomics aims to employ the supplementary input gained from brain investigations, associated with the decision maker’s selection, with the purpose of better grasping the cogitation process and to utilize the outcomes to enhance economic

Health economic data in reimbursement of new medical technologies: importance of the socio-economic burden as a decision-making criterion

Directory of Open Access Journals (Sweden)

Georgi Iskrov

2016-08-01

Full Text Available Background: Assessment and appraisal of new medical technologies require a balance between the interests of different stakeholders. Final decision should take into account the societal value of new therapies.Objective: This perspective paper discusses the socio-economic burden of disease as a specific reimbursement decision-making criterion and calls for the inclusion of it as a counterbalance to the cost-effectiveness and budget impact criteria.Results/Conclusions: Socio-economic burden is a decision-making criterion, accounting for diseases, for which the assessed medical technology is indicated. This indicator is usually researched through cost-of-illness studies that systematically quantify the socio-economic burden of diseases on the individual and on the society. This is a very important consideration as it illustrates direct budgetary consequences of diseases in the health system and indirect costs associated with patient or carer productivity losses. By measuring and comparing the socio-economic burden of different diseases to society, health authorities and payers could benefit in optimizing priority setting and resource allocation.New medical technologies, especially innovative therapies, present an excellent case study for the inclusion of socio-economic burden in reimbursement decision-making. Assessment and appraisal have been greatly concentrated so far on cost-effectiveness and budget impact, marginalizing all other considerations. In this context, data on disease burden and inclusion of explicit criterion of socio-economic burden in reimbursement decision-making may be highly beneficial. Realizing the magnitude of the lost socio-economic contribution resulting from diseases in question could be a reasonable way for policy makers to accept a higher valuation of innovative therapies.

Cost-of-illness analysis. What room in health economics?

Science.gov (United States)

Tarricone, Rosanna

2006-06-01

Cost-of-illness (COI) was the first economic evaluation technique used in the health field. The principal aim was to measure the economic burden of illness to society. Its usefulness as a decision-making tool has however been questioned since its inception. The main criticism came from welfare economists who rejected COIs because they were not grounded in welfare economics theory. Other attacks related to the use of the human capital approach (HCA) to evaluate morbidity and mortality costs since it was said that the HCA had nothing to do with the value people attach to their lives. Finally, objections were made that COI could not be of any help to decision makers and that other forms of economic evaluation (e.g. cost-effectiveness, cost-benefit analysis) would be much more useful to those taking decisions and ranking priorities. Conversely, it is here suggested that COI can be a good economic tool to inform decision makers if it is considered from another perspective. COI is a descriptive study that can provide information to support the political process as well as the management functions at different levels of the healthcare organisations. To do that, the design of the study must be innovative, capable of measuring the true cost to society; to estimate the main cost components and their incidence over total costs; to envisage the different subjects who bear the costs; to identify the actual clinical management of illness; and to explain cost variability. In order to reach these goals, COI need to be designed as observational bottom-up studies.

Dynamic adjustments of cognitive control during economic decision making.

Science.gov (United States)

Soutschek, Alexander; Schubert, Torsten

2014-10-01

Decision making in the Ultimatum game requires the resolution of conflicts between economic self-interest and fairness intuitions. Since cognitive control processes play an important role in conflict resolution, the present study examined how control processes that are triggered by conflicts between fairness and self-interest in unfair offers affect subsequent decisions in the Ultimatum game. Our results revealed that more unfair offers were accepted following previously unfair, compared to previously fair offers. Interestingly, the magnitude of this conflict adaptation effect correlated with the individual subjects' focus on economic self-interest. We concluded that conflicts between fairness and self-interest trigger cognitive control processes, which reinforce the focus on the current task goal. Copyright © 2014 Elsevier B.V. All rights reserved.

The Neural Basis of Economic Decision-Making in the Ultimatum Game

Science.gov (United States)

Sanfey, Alan G.; Rilling, James K.; Aronson, Jessica A.; Nystrom, Leigh E.; Cohen, Jonathan D.

2003-06-01

The nascent field of neuroeconomics seeks to ground economic decision- making in the biological substrate of the brain. We used functional magnetic resonance imaging of Ultimatum Game players to investigate neural substrates of cognitive and emotional processes involved in economic decision-making. In this game, two players split a sum of money; one player proposes a division and the other can accept or reject this. We scanned players as they responded to fair and unfair proposals. Unfair offers elicited activity in brain areas related to both emotion (anterior insula) and cognition (dorsolateral prefrontal cortex). Further, significantly heightened activity in anterior insula for rejected unfair offers suggests an important role for emotions in decision-making.

Benevolent Ideology and Women's Economic Decision-Making: When Sexism Is Hurting Men's Wallet.

Directory of Open Access Journals (Sweden)

Aude Silvestre

Full Text Available Can ideology, as a widespread "expectation creator," impact economic decisions? In two studies we investigated the influence of the Benevolent Sexism (BS ideology (which dictates that men should provide for passive and nurtured women on women's economic decision-making. In Study 1, using a Dictator Game in which women decided how to share amounts of money with men, results of a Generalized Linear Mixed Model analysis show that higher endorsement of BS and contextual expectations of benevolence were associated with more very unequal offers. Similarly, in an Ultimatum Game in which women received monetary offers from men, Study 2's Generalized Linear Mixed Model's results revealed that BS led women to reject more very unequal offers. If women's endorsement of BS ideology and expectations of benevolence prove contrary to reality, they may strike back at men. These findings show that BS ideology creates expectations that shape male-female relationships in a way that could be prejudicial to men.

Benevolent Ideology and Women's Economic Decision-Making: When Sexism Is Hurting Men's Wallet.

Science.gov (United States)

Silvestre, Aude; Sarlet, Marie; Huart, Johanne; Dardenne, Benoit

2016-01-01

Can ideology, as a widespread "expectation creator," impact economic decisions? In two studies we investigated the influence of the Benevolent Sexism (BS) ideology (which dictates that men should provide for passive and nurtured women) on women's economic decision-making. In Study 1, using a Dictator Game in which women decided how to share amounts of money with men, results of a Generalized Linear Mixed Model analysis show that higher endorsement of BS and contextual expectations of benevolence were associated with more very unequal offers. Similarly, in an Ultimatum Game in which women received monetary offers from men, Study 2's Generalized Linear Mixed Model's results revealed that BS led women to reject more very unequal offers. If women's endorsement of BS ideology and expectations of benevolence prove contrary to reality, they may strike back at men. These findings show that BS ideology creates expectations that shape male-female relationships in a way that could be prejudicial to men.

Increasing the efficiency and effectiveness of environmental decisions: Benefit-cost analysis and effluent fees: A critical review

International Nuclear Information System (INIS)

Lave, L.; Gruenspecht, H.

1991-01-01

The objective of this critical review is to evaluate and summarize the literature on economic tools used to improve environmental decision making. Environmental decisions are complicated by pervasive uncertainty, and the lack of consensus on goals and on tradeoffs, such as air versus water pollution and versus loss of coal mining jobs. Five decision frameworks are used by regulatory agencies to simplify decision making. Congress' choice of a decision framework designates the amount of data and analysis that will be required and the range and depth of social values that must be considered. Economic incentives have worked well for phasing out lead in gasoline, for increasing recycling and for reducing the volume of municipal solid waste. Congress has mandated incentives for acid rain and CFCs, and several countries have implemented carbon taxes to abate greenhouse gas emissions. Economic tools have become more central to the analysis and implementation of environmental policies; their role should continue to increase. We conclude that economic tools are extremely valuable, although their application is difficult

A cross-cultural study of noblesse oblige in economic decision-making.

Science.gov (United States)

Fiddick, Laurence; Cummins, Denise Dellarosa; Janicki, Maria; Lee, Sean; Erlich, Nicole

2013-09-01

A cornerstone of economic theory is that rational agents are self-interested, yet a decade of research in experimental economics has shown that economic decisions are frequently driven by concerns for fairness, equity, and reciprocity. One aspect of other-regarding behavior that has garnered attention is noblesse oblige, a social norm that obligates those of higher status to be generous in their dealings with those of lower status. The results of a cross-cultural study are reported in which marked noblesse oblige was observed on a reciprocal-contract decision-making task. Participants from seven countries that vary along hierarchical and individualist/collectivist social dimensions were more tolerant of non-reciprocation when they adopted a high-ranking perspective compared with a low-ranking perspective.

Development of a decision model for the techno-economic assessment of municipal solid waste utilization pathways.

Science.gov (United States)

Khan, Md Mohib-Ul-Haque; Jain, Siddharth; Vaezi, Mahdi; Kumar, Amit

2016-02-01

Economic competitiveness is one of the key factors in making decisions towards the development of waste conversion facilities and devising a sustainable waste management strategy. The goal of this study is to develop a framework, as well as to develop and demonstrate a comprehensive techno-economic model to help county and municipal decision makers in establishing waste conversion facilities. The user-friendly data-intensive model, called the FUNdamental ENgineering PrinciplEs-based ModeL for Estimation of Cost of Energy and Fuels from MSW (FUNNEL-Cost-MSW), compares nine different waste management scenarios, including landfilling and composting, in terms of economic parameters such as gate fees and return on investment. In addition, a geographic information system (GIS) model was developed to determine suitable locations for waste conversion facilities and landfill sites based on integration of environmental, social, and economic factors. Finally, a case study on Parkland County and its surrounding counties in the province of Alberta, Canada, was conducted and a sensitivity analysis was performed to assess the influence of the key technical and economic parameters on the calculated results. Copyright © 2015 Elsevier Ltd. All rights reserved.

Public health policy decisions on medical innovations: what role can early economic evaluation play?

Science.gov (United States)

Hartz, Susanne; John, Jürgen

2009-02-01

Our contribution aims to explore the different ways in which early economic data can inform public health policy decisions on new medical technologies. A literature research was conducted to detect methodological contributions covering the health policy perspective. Early economic data on new technologies can support public health policy decisions in several ways. Embedded in horizon scanning and HTA activities, it adds to monitoring and assessment of innovations. It can play a role in the control of technology diffusion by informing coverage and reimbursement decisions as well as the direct public promotion of healthcare technologies, leading to increased efficiency. Major problems include the uncertainty related to economic data at early stages as well as the timing of the evaluation of an innovation. Decision-makers can benefit from the information supplied by early economic data, but the actual use in practice is difficult to determine. Further empirical evidence should be gathered, while the use could be promoted by further standardization.

Deep Rationality: The Evolutionary Economics of Decision Making.

Science.gov (United States)

Kenrick, Douglas T; Griskevicius, Vladas; Sundie, Jill M; Li, Norman P; Li, Yexin Jessica; Neuberg, Steven L

2009-10-01

What is a "rational" decision? Economists traditionally viewed rationality as maximizing expected satisfaction. This view has been useful in modeling basic microeconomic concepts, but falls short in accounting for many everyday human decisions. It leaves unanswered why some things reliably make people more satisfied than others, and why people frequently act to make others happy at a cost to themselves. Drawing on an evolutionary perspective, we propose that people make decisions according to a set of principles that may not appear to make sense at the superficial level, but that demonstrate rationality at a deeper evolutionary level. By this, we mean that people use adaptive domain-specific decision-rules that, on average, would have resulted in fitness benefits. Using this framework, we re-examine several economic principles. We suggest that traditional psychological functions governing risk aversion, discounting of future benefits, and budget allocations to multiple goods, for example, vary in predictable ways as a function of the underlying motive of the decision-maker and individual differences linked to evolved life-history strategies. A deep rationality framework not only helps explain why people make the decisions they do, but also inspires multiple directions for future research.

LANL Institutional Decision Support By Process Modeling and Analysis Group (AET-2)

Energy Technology Data Exchange (ETDEWEB)

Booth, Steven Richard [Los Alamos National Laboratory

2016-04-04

AET-2 has expertise in process modeling, economics, business case analysis, risk assessment, Lean/Six Sigma tools, and decision analysis to provide timely decision support to LANS leading to continuous improvement. This capability is critical during the current tight budgetary environment as LANS pushes to identify potential areas of cost savings and efficiencies. An important arena is business systems and operations, where processes can impact most or all laboratory employees. Lab-wide efforts are needed to identify and eliminate inefficiencies to accomplish Director McMillan’s charge of “doing more with less.” LANS faces many critical and potentially expensive choices that require sound decision support to ensure success. AET-2 is available to provide this analysis support to expedite the decisions at hand.

The Risks of Strategic Decisions in the Sphere of Financial and Economic Security of Public-Private Partnership

Directory of Open Access Journals (Sweden)

Solodovnik Olesia O.

2017-06-01

Full Text Available The article is aimed at studying and substantiating the theoretical and methodological aspects of development, analysis and assessment of strategic decisions in the sphere of financial and economic security of public-private partnership (PPP in the context of the risks of their implementation. A study on the essence and characteristics of strategic decisions in the sphere of financial and economic security of PPP has led to the conclusion that each such decision should be considered and assessed in the context of the risks of its implementation, and the risk theory could be seen as the scientific basis for defining strategic alternatives and developing a criteria base for assessing them. The article proposes a list and systematization of the PPP risks that allow to: itemize the risks to the external and internal environment of PPP and to identify the prerequisites and sources of threats to the financial and economic interests of parties to the partnership; analyze and evaluate the strategic alternatives for risk distribution among partners in the context of implications for financial and economic security of PPP; determine the risks of achieving the objectives of the strategy for financial and economic security of PPP and to evaluate alternative strategies in terms of partners; account the potential occurrence and development of systemic risks and threats to the financial and economic security of PPP, as well as the use of complementary protective mechanisms; evaluate the results of a strategy to protect the financial and economic interests of parties to the PPP.

Better economics: supporting adaptation with stakeholder analysis

Energy Technology Data Exchange (ETDEWEB)

Chambwera, Muyeye; Zou, Ye; Boughlala, Mohamed

2011-11-15

Across the developing world, decision makers understand the need to adapt to climate change — particularly in agriculture, which supports a large proportion of low-income groups who are especially vulnerable to impacts such as increasing water scarcity or more erratic weather. But policymakers are often less clear about what adaptation action to take. Cost-benefit analyses can provide information on the financial feasibility and economic efficiency of a given policy. But such methods fail to capture the non-monetary benefits of adaptation, which can be even more important than the monetary ones. Ongoing work in Morocco shows how combining cost-benefit analysis with a more participatory stakeholder analysis can support effective decision making by identifying cross-sector benefits, highlighting areas of mutual interest among different stakeholders and more effectively assessing impacts on adaptive capacity.

Management Information, Decision Sciences, and Financial Economics : a connection

NARCIS (Netherlands)

C-L. Chang (Chia-Lin); M.J. McAleer (Michael); W.-K. Wong (Wing-Keung)

2018-01-01

markdownabstractThe paper provides a brief review of the connecting literature in management information, decision sciences, and financial economics, and discusses some research that is related to the three cognate disciplines. Academics could develop theoretical models and subsequent

NEW PARADIGM OF ANALYSIS OF STATISTICAL AND EXPERT DATA IN PROBLEMS OF ECONOMICS AND MANAGEMENT

OpenAIRE

Orlov A. I.

2014-01-01

The article is devoted to the methods of analysis of statistical and expert data in problems of economics and management that are discussed in the framework of scientific specialization "Mathematical methods of economy", including organizational-economic and economic-mathematical modeling, econometrics and statistics, as well as economic aspects of decision theory, systems analysis, cybernetics, operations research. The main provisions of the new paradigm of this scientific and practical fiel...

Aging and Wisdom: Age-related changes in economic and social decision making

Directory of Open Access Journals (Sweden)

Kenneth eLim

2015-06-01

Full Text Available World life expectancy is increasing and many populations will begin to age rapidly. The impeding prevalence of a greater number of older people living longer lives will have significant social and economic implications. It is important to understand how older people make economic and social decisions. Aging can be associated with a ‘phenomenon of decline’ and also greater wisdom. This paper seeks to examine the relationship between wisdom and aging. It reviews and connects the behavioral sciences and neuroscience literature on age differences in the following social and economic decision making domains that represent subcomponents of wisdom: 1 prosocial behavior in experimental economic games and competitive situations, 2 resolving social conflicts, 3 emotional homeostasis, 4 self-reflection, 5 dealing effectively with uncertainty in the domains of risk, ambiguity and intertemporal choice. Overall, we find a lack of research into how older people make economic and social decisions. There is, however, some evidence that older adults outperform young adults on certain subcomponents of wisdom, but the exact relationship between old age and each subcomponent remains unclear. A better understanding of these relationships holds the potential to alleviate a wide range of mental health problems, and has broad implications for social policies aimed at the elderly.

Analysis of the environmental and economic indicators of the industrial enterprise

Science.gov (United States)

Mikhailov, V. G.; Kiseleva, T. V.

2018-05-01

In the paper the features of the analysis of the environmental and economic indicators of the industrial enterprise are considered. The purpose of the study is to improve the system of environmental and economic analysis at the enterprise for more accurate forecasting of its main environmental and economic indicators. The study of the main approaches to the implementation of environmental and economic analysis based on the corresponding systems of indicators with identification of the most significant factors was carried out. The main result of the study is the choice of a system for analyzing the environmental and economic indicators, maximally oriented to a specific enterprise, taking into account its production specific features. The practical significance of the study consists in the selection of an adequate system of indicators at enterprises to improve the effectiveness from preparation of an environmentally safe management decision.

Economic assessment of flood forecasts for a risk-averse decision-maker

Science.gov (United States)

Matte, Simon; Boucher, Marie-Amélie; Boucher, Vincent; Fortier-Filion, Thomas-Charles

2017-04-01

A large effort has been made over the past 10 years to promote the operational use of probabilistic or ensemble streamflow forecasts. It has also been suggested in past studies that ensemble forecasts might possess a greater economic value than deterministic forecasts. However, the vast majority of recent hydro-economic literature is based on the cost-loss ratio framework, which might be appealing for its simplicity and intuitiveness. One important drawback of the cost-loss ratio is that it implicitly assumes a risk-neutral decision maker. By definition, a risk-neutral individual is indifferent to forecasts' sharpness: as long as forecasts agree with observations on average, the risk-neutral individual is satisfied. A risk-averse individual, however, is sensitive to the level of precision (sharpness) of forecasts. This person is willing to pay to increase his or her certainty about future events. In fact, this is how insurance companies operate: the probability of seeing one's house burn down is relatively low, so the expected cost related to such event is also low. However, people are willing to buy insurance to avoid the risk, however small, of loosing everything. Similarly, in a context where people's safety and property is at stake, the typical decision maker is more risk-averse than risk-neutral. Consequently, the cost-loss ratio is not the most appropriate tool to assess the economic value of flood forecasts. This presentation describes a more realistic framework for assessing the economic value of such forecasts for flood mitigation purposes. Borrowing from economics, the Constant Absolute Risk Aversion utility function (CARA) is the central tool of this new framework. Utility functions allow explicitly accounting for the level of risk aversion of the decision maker and fully exploiting the information related to ensemble forecasts' uncertainty. Three concurrent ensemble streamflow forecasting systems are compared in terms of quality (comparison with

The role of economic evaluation in the decision-making process of family physicians: design and methods of a qualitative embedded multiple-case study

Science.gov (United States)

Lessard, Chantale; Contandriopoulos, André-Pierre; Beaulieu, Marie-Dominique

2009-01-01

Background A considerable amount of resource allocation decisions take place daily at the point of the clinical encounter; especially in primary care, where 80 percent of health problems are managed. Ignoring economic evaluation evidence in individual clinical decision-making may have a broad impact on the efficiency of health services. To date, almost all studies on the use of economic evaluation in decision-making used a quantitative approach, and few investigated decision-making at the clinical level. An important question is whether economic evaluations affect clinical practice. The project is an intervention research study designed to understand the role of economic evaluation in the decision-making process of family physicians (FPs). The contributions of the project will be from the perspective of Pierre Bourdieu's sociological theory. Methods/design A qualitative research strategy is proposed. We will conduct an embedded multiple-case study design. Ten case studies will be performed. The FPs will be the unit of analysis. The sampling strategies will be directed towards theoretical generalization. The 10 selected cases will be intended to reflect a diversity of FPs. There will be two embedded units of analysis: FPs (micro-level of analysis) and field of family medicine (macro-level of analysis). The division of the determinants of practice/behaviour into two groups, corresponding to the macro-structural level and the micro-individual level, is the basis for Bourdieu's mode of analysis. The sources of data collection for the micro-level analysis will be 10 life history interviews with FPs, documents and observational evidence. The sources of data collection for the macro-level analysis will be documents and 9 open-ended, focused interviews with key informants from medical associations and academic institutions. The analytic induction approach to data analysis will be used. A list of codes will be generated based on both the original framework and new themes

The role of economic evaluation in the decision-making process of family physicians: design and methods of a qualitative embedded multiple-case study

Directory of Open Access Journals (Sweden)

Beaulieu Marie-Dominique

2009-02-01

Full Text Available Abstract Background A considerable amount of resource allocation decisions take place daily at the point of the clinical encounter; especially in primary care, where 80 percent of health problems are managed. Ignoring economic evaluation evidence in individual clinical decision-making may have a broad impact on the efficiency of health services. To date, almost all studies on the use of economic evaluation in decision-making used a quantitative approach, and few investigated decision-making at the clinical level. An important question is whether economic evaluations affect clinical practice. The project is an intervention research study designed to understand the role of economic evaluation in the decision-making process of family physicians (FPs. The contributions of the project will be from the perspective of Pierre Bourdieu's sociological theory. Methods/design A qualitative research strategy is proposed. We will conduct an embedded multiple-case study design. Ten case studies will be performed. The FPs will be the unit of analysis. The sampling strategies will be directed towards theoretical generalization. The 10 selected cases will be intended to reflect a diversity of FPs. There will be two embedded units of analysis: FPs (micro-level of analysis and field of family medicine (macro-level of analysis. The division of the determinants of practice/behaviour into two groups, corresponding to the macro-structural level and the micro-individual level, is the basis for Bourdieu's mode of analysis. The sources of data collection for the micro-level analysis will be 10 life history interviews with FPs, documents and observational evidence. The sources of data collection for the macro-level analysis will be documents and 9 open-ended, focused interviews with key informants from medical associations and academic institutions. The analytic induction approach to data analysis will be used. A list of codes will be generated based on both the original

Complementary cognitive capabilities, economic decision making, and aging.

Science.gov (United States)

Li, Ye; Baldassi, Martine; Johnson, Eric J; Weber, Elke U

2013-09-01

Fluid intelligence decreases with age, yet evidence about age declines in decision-making quality is mixed: Depending on the study, older adults make worse, equally good, or even better decisions than younger adults. We propose a potential explanation for this puzzle, namely that age differences in decision performance result from the interplay between two sets of cognitive capabilities that impact decision making, one in which older adults fare worse (i.e., fluid intelligence) and one in which they fare better (i.e., crystallized intelligence). Specifically, we hypothesized that older adults' higher levels of crystallized intelligence can provide an alternate pathway to good decisions when the fluid intelligence pathway declines. The performance of older adults relative to younger adults therefore depends on the relative importance of each type of intelligence for the decision at hand. We tested this complementary capabilities hypothesis in a broad sample of younger and older adults, collecting a battery of standard cognitive measures and measures of economically important decision-making "traits"--including temporal discounting, loss aversion, financial literacy, and debt literacy. We found that older participants performed as well as or better than younger participants on these four decision-making measures. Structural equation modeling verified our hypothesis: Older participants' greater crystallized intelligence offset their lower levels of fluid intelligence for temporal discounting, financial literacy, and debt literacy, but not for loss aversion. These results have important implications for public policy and for the design of effective decision environments for older adults.

Risk based economic optimization of investment decisions of regulated power distribution system operators; Risikobasierte wirtschaftliche Optimierung von Investitionsentscheidungen regulierter Stromnetzbetreiber

Energy Technology Data Exchange (ETDEWEB)

John, Oliver

2012-07-01

The author of the contribution under consideration reports on risk-based economic optimization of investment decisions of regulated power distribution system operators. The focus is the economically rational decision behavior of operators under certain regulatory requirements. Investments in power distribution systems form the items subject to decisions. Starting from a description of theoretical and practical regulatory approaches, their financial implications are quantified at first. On this basis, optimization strategies are derived with respect to the investment behavior. For this purpose, an optimization algorithm is developed and applied to exemplary companies. Finally, effects of uncertainties in regulatory systems are investigated. In this context, Monte Carlo simulations are used in conjunction with real options analysis.

Decision analysis of shoreline protection under climate change uncertainty

Science.gov (United States)

Chao, Philip T.; Hobbs, Benjamin F.

1997-04-01

If global warming occurs, it could significantly affect water resource distribution and availability. Yet it is unclear whether the prospect of such change is relevant to water resources management decisions being made today. We model a shoreline protection decision problem with a stochastic dynamic program (SDP) to determine whether consideration of the possibility of climate change would alter the decision. Three questions are addressed with the SDP: (l) How important is climate change compared to other uncertainties?, (2) What is the economic loss if climate change uncertainty is ignored?, and (3) How does belief in climate change affect the timing of the decision? In the case study, sensitivity analysis shows that uncertainty in real discount rates has a stronger effect upon the decision than belief in climate change. Nevertheless, a strong belief in climate change makes the shoreline protection project less attractive and often alters the decision to build it.

Project analysis and integration economic analyses summary

Science.gov (United States)

Macomber, H. L.

1986-01-01

An economic-analysis summary was presented for the manufacture of crystalline-silicon modules involving silicon ingot/sheet, growth, slicing, cell manufacture, and module assembly. Economic analyses provided: useful quantitative aspects for complex decision-making to the Flat-plate Solar Array (FSA) Project; yardsticks for design and performance to industry; and demonstration of how to evaluate and understand the worth of research and development both to JPL and other government agencies and programs. It was concluded that future research and development funds for photovoltaics must be provided by the Federal Government because the solar industry today does not reap enough profits from its present-day sales of photovoltaic equipment.

The Felbertauern landslide of 2013: Traffic disruption, regional economic consequences and policy decisions

Science.gov (United States)

Pfurtscheller, Clemens; Genovese, Elisabetta

2016-04-01

The Felbertauern landslide of May 2013 caused the total destruction of approximately 100 meters of road including an avalanche gallery, generating several direct and indirect impacts on the regional-economy. The Felbertauern road, an important traffic arteria for the whole NUTS-3 region East-Tyrol (Austria), was totally blocked for several weeks. Short after the event, regional decision makers were hardly in need for an estimation of the regional-economic impacts of the road blockage to opt for alternatives to reopen the road. So, two weeks after the event, an analysis of the possible effects was carried out using only scattered information and statistical data. The analysis is based on a three-month interruption scenario. Retrospectively the road blockage was only two months. Due to the fact that short after the event no up-to-date data on regional-economics at necessary scales was available, impacts on tourism by analysing overnight stays, additional transportation costs and time losses for the local companies were calculated. Using these numbers, a cost-benefit-analysis was carried out for a projected bypass, a mid-term 1.5 kilometer long route as an alternative to the destroyed road. Finally, the impacts on the local companies were severe, due to additional transportation costs of approx. Euro 1.4 million and Euro 76 000 additional time costs using an alternative approach. The impacts on regional tourism were calculated with Euro 7.7 to 10.7 million - that means 0.6 to 0.8% of the total economic output of the region. The study shows the strong impact of indirect and business interruption costs on regional economies and describes the major problems faced during the study - in particular the low availability of input data. The results of consistent cost assessment are critical for decision makers who are responsible for the development of policies to prevent the impacts on societies.

About Problems of Decision Making in Social and Economic Systems

OpenAIRE

Voloshyn, Oleksiy

2006-01-01

The reasons of a restricted applicability of the models of decision making in social and economic systems. 3 basic principles of growth of their adequacy are proposed: "localization" of solutions, direct account of influencing of the individual on process of decision making ("subjectivity of objectivity") and reduction of influencing of the individual psychosomatic characteristics of the subject (" objectivity of subjectivity ") are offered. The principles are illustrated on mathe...

ADVISHE: A new tool to report validation of health-economic decision models

NARCIS (Netherlands)

Vemer, P.; Corro Ramos, I.; Van Voorn, G.; Al, M.J.; Feenstra, T.L.

2014-01-01

Background: Modelers and reimbursement decision makers could both profit from a more systematic reporting of the efforts to validate health-economic (HE) models. Objectives: Development of a tool to systematically report validation efforts of HE decision models and their outcomes. Methods: A gross

Complementary Cognitive Capabilities, Economic Decision-Making, and Aging

Science.gov (United States)

Li, Ye; Baldassi, Martine; Johnson, Eric J.; Weber, Elke U.

2014-01-01

Fluid intelligence decreases with age, yet evidence about age declines in decision-making quality is mixed: Depending on the study, older adults make worse, equally good, or even better decisions than younger adults. We propose a potential explanation for this puzzle, namely that age differences in decision performance result from the interplay between two sets of cognitive capabilities that impact decision making, one in which older adults fare worse (i.e., fluid intelligence) and one in which they fare better (i.e., crystallized intelligence). Specifically, we hypothesized that older adults’ higher levels of crystallized intelligence can provide an alternate pathway to good decisions when the fluid intelligence pathway declines. The performance of older adults relative to younger adults therefore depends on the relative importance of each type of intelligence for the decision at hand. We tested this complementary capabilities hypothesis in a broad sample of younger and older adults, collecting a battery of standard cognitive measures and measures of economically important decision-making “traits”—including temporal discounting, loss aversion, financial literacy, and debt literacy. We found that older participants performed as well as or better than younger participants on these four decision-making measures. Structural equation modeling verified our hypothesis: Older participants’ greater crystallized intelligence offset their lower levels of fluid intelligence for temporal discounting, financial literacy, and debt literacy, but not for loss aversion. These results have important implications for public policy and for the design of effective decision environments for older adults. PMID:24040999

Nuclear incident response in industrial areas: assessing the economic impact of the decision to evacuate

International Nuclear Information System (INIS)

Pauwels, N.; Walle, B. van de; Hardeman, F.; Sohier, A.; Soudan, K.

1996-01-01

The economic impact of imposing countermeasures in case of a nuclear emergency is a very important aspect in both the Probabilistic Risk Assessment code COSYMA and the Real-time On-line DecisiOn Support system RODOS. Therefore, these codes make use of the economic model ECONOM. In this paper, we will show that this economic model is not very well suited, nor designed, to predict the economic impact of evacuating a highly industrialised area in case of a nuclear emergency. Furthermore, we will indicate how recent economic investment theories can be used to deal with this decision problem in a more elaborate way. (author)

Economic analyses to support decisions about HPV vaccination in low- and middle-income countries: a consensus report and guide for analysts.

Science.gov (United States)

Jit, Mark; Levin, Carol; Brisson, Marc; Levin, Ann; Resch, Stephen; Berkhof, Johannes; Kim, Jane; Hutubessy, Raymond

2013-01-30

Low- and middle-income countries need to consider economic issues such as cost-effectiveness, affordability and sustainability before introducing a program for human papillomavirus (HPV) vaccination. However, many such countries lack the technical capacity and data to conduct their own analyses. Analysts informing policy decisions should address the following questions: 1) Is an economic analysis needed? 2) Should analyses address costs, epidemiological outcomes, or both? 3) If costs are considered, what sort of analysis is needed? 4) If outcomes are considered, what sort of model should be used? 5) How complex should the analysis be? 6) How should uncertainty be captured? 7) How should model results be communicated? Selecting the appropriate analysis is essential to ensure that all the important features of the decision problem are correctly represented, but that the analyses are not more complex than necessary. This report describes the consensus of an expert group convened by the World Health Organization, prioritizing key issues to be addressed when considering economic analyses to support HPV vaccine introduction in these countries.

Economic decision-making compared with an equivalent motor task.

Science.gov (United States)

Wu, Shih-Wei; Delgado, Mauricio R; Maloney, Laurence T

2009-04-14

There is considerable evidence that human economic decision-making deviates from the predictions of expected utility theory (EUT) and that human performance conforms to EUT in many perceptual and motor decision tasks. It is possible that these results reflect a real difference in decision-making in the 2 domains but it is also possible that the observed discrepancy simply reflects typical differences in experimental design. We developed a motor task that is mathematically equivalent to choosing between lotteries and used it to compare how the same subject chose between classical economic lotteries and the same lotteries presented in equivalent motor form. In experiment 1, we found that subjects are more risk seeking in deciding between motor lotteries. In experiment 2, we used cumulative prospect theory to model choice and separately estimated the probability weighting functions and the value functions for each subject carrying out each task. We found no patterned differences in how subjects represented outcome value in the motor and the classical tasks. However, the probability weighting functions for motor and classical tasks were markedly and significantly different. Those for the classical task showed a typical tendency to overweight small probabilities and underweight large probabilities, and those for the motor task showed the opposite pattern of probability distortion. This outcome also accounts for the increased risk-seeking observed in the motor tasks of experiment 1. We conclude that the same subject distorts probability, but not value, differently in making identical decisions in motor and classical form.

Enhanced electricity system analysis for decision making - A reference book

International Nuclear Information System (INIS)

2000-01-01

The objective of electricity system analysis in support of decision making is to provide comparative assessment results upon which relevant policy choices between alternative technology options and supply strategies can be based. This reference book offers analysts, planners and decision makers documented information on enhanced approaches to electricity system analysis, that can assist in achieving this objective. The book describes the main elements of comprehensive electricity system analysis and outlines an advanced integrated analysis and decision making framework for the electric power sector. Emphasis is placed on mechanisms for building consensus between interested and affected parties, and on aspects of planning that go beyond the traditional economic optimisation approach. The scope and contents of the book cover the topics to be addressed in decision making for the power sector and the process of integrating economic, social, health and environmental aspects in the comparative assessment of alternative options and strategies. The book describes and discusses overall frameworks, processes and state of the art methods and techniques available to analysts and planners for carrying out comparative assessment studies, in order to provide sound information to decision makers. This reference book is published as part of a series of technical reports and documents prepared in the framework of the inter-agency joint project (DECADES) on databases and methodologies for comparative assessment of different energy sources for electricity generation. The overall objective of the DECADES project is to enhance capabilities for incorporating economic, social, health and environmental issues in the comparative assessment of electricity generation options and strategies in the process of decision making for the power sector. The project, established in 1992, is carried out jointly by the European Commission (EC), the Economic and Social Commission for Asia and the Pacific

Economic decisions for others: an exception to loss aversion law.

Directory of Open Access Journals (Sweden)

Flavia Mengarelli

Full Text Available In everyday life, people often make decisions on behalf of others. The current study investigates whether risk preferences of decision-makers differ when the reference point is no longer their own money but somebody else money. Thirty four healthy participants performed three different monetary risky choices tasks by making decisions for oneself and for another unknown person. Results showed that loss aversion bias was significantly reduced when participants were choosing on behalf of another person compared to when choosing for themselves. The influence of emotions like regret on decision-making may explain these results. We discuss the importance of the sense of responsibility embodied in the emotion of regret in modulating economic decisions for self but not for others. Moreover, our findings are consistent with the Risk-as-feelings hypothesis, suggesting that self-other asymmetrical behavior is due to the extent the decision-maker is affected by the real and emotional consequences of his/her decision.

Economic decisions for others: an exception to loss aversion law.

Science.gov (United States)

Mengarelli, Flavia; Moretti, Laura; Faralla, Valeria; Vindras, Philippe; Sirigu, Angela

2014-01-01

In everyday life, people often make decisions on behalf of others. The current study investigates whether risk preferences of decision-makers differ when the reference point is no longer their own money but somebody else money. Thirty four healthy participants performed three different monetary risky choices tasks by making decisions for oneself and for another unknown person. Results showed that loss aversion bias was significantly reduced when participants were choosing on behalf of another person compared to when choosing for themselves. The influence of emotions like regret on decision-making may explain these results. We discuss the importance of the sense of responsibility embodied in the emotion of regret in modulating economic decisions for self but not for others. Moreover, our findings are consistent with the Risk-as-feelings hypothesis, suggesting that self-other asymmetrical behavior is due to the extent the decision-maker is affected by the real and emotional consequences of his/her decision.

Composite decision support by combining cost-benefit and multi-criteria decision

DEFF Research Database (Denmark)

Barfod, Michael Bruhn; Salling, Kim Bang; Leleur, Steen

2011-01-01

This paper concerns composite decision support based on combining cost-benefit analysis (CBA) with multi-criteria decision analysis (MCDA) for the assessment of economic as well as strategic impacts within transport projects. Specifically a composite model for assessment (COSIMA) is presented...

Embodied economics: how bodily information shapes the social coordination dynamics of decision-making.

Science.gov (United States)

Oullier, Olivier; Basso, Frédéric

2010-01-27

To date, experiments in economics are restricted to situations in which individuals are not influenced by the physical presence of other people. In such contexts, interactions remain at an abstract level, agents guessing what another person is thinking or is about to decide based on money exchange. Physical presence and bodily signals are therefore left out of the picture. However, in real life, social interactions (involving economic decisions or not) are not solely determined by a person's inference about someone else's state-of-mind. In this essay, we argue for embodied economics: an approach to neuroeconomics that takes into account how information provided by the entire body and its coordination dynamics influences the way we make economic decisions. Considering the role of embodiment in economics--movements, posture, sensitivity to mimicry and every kind of information the body conveys--makes sense. This is what we claim in this essay which, to some extent, constitutes a plea to consider bodily interactions between agents in social (neuro)economics.

Understanding the stakeholders' intention to use economic decision-support tools: A cross-sectional study with the tobacco return on investment tool.

Science.gov (United States)

Cheung, Kei Long; Evers, Silvia M A A; Hiligsmann, Mickaël; Vokó, Zoltán; Pokhrel, Subhash; Jones, Teresa; Muñoz, Celia; Wolfenstetter, Silke B; Józwiak-Hagymásy, Judit; de Vries, Hein

2016-01-01

Despite an increased number of economic evaluations of tobacco control interventions, the uptake by stakeholders continues to be limited. Understanding the underlying mechanism in adopting such economic decision-support tools by stakeholders is therefore important. By applying the I-Change Model, this study aims to identify which factors determine potential uptake of an economic decision-support tool, i.e., the Return on Investment tool. Stakeholders (decision-makers, purchasers of services/pharma products, professionals/service providers, evidence generators and advocates of health promotion) were interviewed in five countries, using an I-Change based questionnaire. MANOVA's were conducted to assess differences between intenders and non-intenders regarding beliefs. A multiple regression analysis was conducted to identify the main explanatory variables of intention to use an economic decision-support tool. Ninety-three stakeholders participated. Significant differences in beliefs were found between non-intenders and intenders: risk perception, attitude, social support, and self-efficacy towards using the tool. Regression showed that demographics, pre-motivational, and motivational factors explained 69% of the variation in intention. This study is the first to provide a theoretical framework to understand differences in beliefs between stakeholders who do or do not intend to use economic decision-support tools, and empirically corroborating the framework. This contributes to our understanding of the facilitators and barriers to the uptake of these studies. Copyright © 2015 The Authors. Published by Elsevier Ireland Ltd.. All rights reserved.

Why we should use animals to study economic decision making - a perspective.

Science.gov (United States)

Kalenscher, Tobias; van Wingerden, Marijn

2011-01-01

Despite the rich tradition in psychology and biology, animals as research subjects have never gained a similar acceptance in microeconomics research. With this article, we counter this trend of negligence and try to convey the message that animal models are an indispensible complement to the literature on human economic decision making. This perspective review departs from a description of the similarities in economic and evolutionary theories of human and animal decision making, with particular emphasis on the optimality aspect that both classes of theories have in common. In a second part, we outline that actual, empirically observed decisions often do not conform to the normative ideals of economic and ecological models, and that many of the behavioral violations found in humans can also be found in animals. In a third part, we make a case that the sense or nonsense of the behavioral violations of optimality principles in humans can best be understood from an evolutionary perspective, thus requiring animal research. Finally, we conclude with a critical discussion of the parallels and inherent differences in human and animal research.

Risk analysis as a decision tool

International Nuclear Information System (INIS)

Yadigaroglu, G.; Chakraborty, S.

1985-01-01

From 1983 - 1985 a lecture series entitled ''Risk-benefit analysis'' was held at the Swiss Federal Institute of Technology (ETH), Zurich, in cooperation with the Central Department for the Safety of Nuclear Installations of the Swiss Federal Agency of Energy Economy. In that setting the value of risk-oriented evaluation models as a decision tool in safety questions was discussed on a broad basis. Experts of international reputation from the Federal Republic of Germany, France, Canada, the United States and Switzerland have contributed to report in this joint volume on the uses of such models. Following an introductory synopsis on risk analysis and risk assessment the book deals with practical examples in the fields of medicine, nuclear power, chemistry, transport and civil engineering. Particular attention is paid to the dialogue between analysts and decision makers taking into account the economic-technical aspects and social values. The recent chemical disaster in the Indian city of Bhopal again signals the necessity of such analyses. All the lectures were recorded individually. (orig./HP) [de

Managing resources in NHS dentistry: using health economics to inform commissioning decisions

Directory of Open Access Journals (Sweden)

Exley Catherine E

2011-05-01

Full Text Available Abstract Background The aim of this study is to develop, apply and evaluate an economics-based framework to assist commissioners in their management of finite resources for local dental services. In April 2006, Primary Care Trusts in England were charged with managing finite dental budgets for the first time, yet several independent reports have since criticised the variability in commissioning skills within these organisations. The study will explore the views of stakeholders (dentists, patients and commissioners regarding priority setting and the criteria used for decision-making and resource allocation. Two inter-related case studies will explore the dental commissioning and resource allocation processes through the application of a pragmatic economics-based framework known as Programme Budgeting and Marginal Analysis. Methods/Design The study will adopt an action research approach. Qualitative methods including semi-structured interviews, focus groups, field notes and document analysis will record the views of participants and their involvement in the research process. The first case study will be based within a Primary Care Trust where mixed methods will record the views of dentists, patients and dental commissioners on issues, priorities and processes associated with managing local dental services. A Programme Budgeting and Marginal Analysis framework will be applied to determine the potential value of economic principles to the decision-making process. A further case study will be conducted in a secondary care dental teaching hospital using the same approach. Qualitative data will be analysed using thematic analysis and managed using a framework approach. Discussion The recent announcement by government regarding the proposed abolition of Primary Care Trusts may pose challenges for the research team regarding their engagement with the research study. However, whichever commissioning organisations are responsible for resource allocation

Benevolent Ideology and Women’s Economic Decision-Making: When Sexism Is Hurting Men’s Wallet

Science.gov (United States)

Silvestre, Aude; Sarlet, Marie; Huart, Johanne; Dardenne, Benoit

2016-01-01

Can ideology, as a widespread “expectation creator,” impact economic decisions? In two studies we investigated the influence of the Benevolent Sexism (BS) ideology (which dictates that men should provide for passive and nurtured women) on women’s economic decision-making. In Study 1, using a Dictator Game in which women decided how to share amounts of money with men, results of a Generalized Linear Mixed Model analysis show that higher endorsement of BS and contextual expectations of benevolence were associated with more very unequal offers. Similarly, in an Ultimatum Game in which women received monetary offers from men, Study 2’s Generalized Linear Mixed Model’s results revealed that BS led women to reject more very unequal offers. If women’s endorsement of BS ideology and expectations of benevolence prove contrary to reality, they may strike back at men. These findings show that BS ideology creates expectations that shape male-female relationships in a way that could be prejudicial to men. PMID:26870955

ACCOUNTING INFORMATION BETWEEN ECONOMIC DECISION AND FISCAL MANAGEMENT IN THE ENTERPRISE LEVEL

Directory of Open Access Journals (Sweden)

HOLT GHEORGHE

2016-08-01

Full Text Available Anchored in reflecting reality, as secular science and practice, accounting has demonstrated continuously opening towards progress and social involvement. The information provided by operators underlie the economic and political decision of a wide range of users. The variety of funding determines the specific behavior of the company. In an economic environment with largely financing through bank loans, companies and their creditors directs its decision in particular on collateral, receivables and payables at a time. In an environment with its own financing, the interests of users of accounting information is moving mainly on growth equity, results and cash holdings.

Econometric Analysis on Developing Decision to Promote an Investment Object of Small Business

Directory of Open Access Journals (Sweden)

Cristina Gabriela ZAMFIR

2014-12-01

Full Text Available Econometric applications should be used for decision making on economic issues of the day. One of the most important is access to finance sources, a vital field to the country's economic activity. Accessing funding source involves feasibility studies for decision making on opening funding. Therefore, I decided to approach applied econometrics in the feasibility studies: I avoided advanced software applications, limiting to universally accepted methodology of the World Bank and the functions for calculating Excel spreadsheet-success of a feasibility study is correctness and depth of analysis and processing raw data, not in getting and keeping a reputable software.

Embodied economics: how bodily information shapes the social coordination dynamics of decision-making

Science.gov (United States)

Oullier, Olivier; Basso, Frédéric

2010-01-01

To date, experiments in economics are restricted to situations in which individuals are not influenced by the physical presence of other people. In such contexts, interactions remain at an abstract level, agents guessing what another person is thinking or is about to decide based on money exchange. Physical presence and bodily signals are therefore left out of the picture. However, in real life, social interactions (involving economic decisions or not) are not solely determined by a person's inference about someone else's state-of-mind. In this essay, we argue for embodied economics: an approach to neuroeconomics that takes into account how information provided by the entire body and its coordination dynamics influences the way we make economic decisions. Considering the role of embodiment in economics—movements, posture, sensitivity to mimicry and every kind of information the body conveys—makes sense. This is what we claim in this essay which, to some extent, constitutes a plea to consider bodily interactions between agents in social (neuro)economics. PMID:20026467

Decision Sciences, Economics, Finance, Business, Computing, and Big Data: Connections

NARCIS (Netherlands)

C-L. Chang (Chia-Lin); M.J. McAleer (Michael); W.-K. Wong (Wing-Keung)

2018-01-01

textabstractThis paper provides a review of some connecting literature in Decision Sciences, Economics, Finance, Business, Computing, and Big Data. We then discuss some research that is related to the six cognate disciplines. Academics could develop theoretical models and subsequent

Purposeful engineering economics

CERN Document Server

Chadderton, Ronald A

2015-01-01

This textbook/course supplement stands as a unique and highly original complement to the traditional engineering economics curriculum. Its primarily narrative approach conveys the essence of an “Austrian" economic perspective on cash flow analysis and decision making in engineering, without extensive tables and graphs, and requires very little mathematics. The book’s objective is to add a new perspective to the usual study of cash flow analysis and solely econometric engineering decision making. The author draws on the methodology of the Austrian Economists—a school of economic thought that bases its study of economic phenomena on the interpretation and analysis of the purposeful actions of individuals. The book includes an array of illustrative case studies examined in detail by the author and emphasizes the importance of market processes and price signals to coordinate engineering plans. Purposeful Engineering Economics is an ideal resource for students, teaching faculty, and practicing professional ...

Economic modeling for life extension decision making

International Nuclear Information System (INIS)

Farber, M.A.; Harrison, D.L.; Carlson, D.D.

1986-01-01

This paper presents a methodology for the economic and financial analysis of nuclear plant life extension under uncertainty and demonstrates its use in a case analysis. While the economic and financial evaluation of life extension does not require new analytical tools, such studies should be based on the following three premises. First, the methodology should examine effects at the level of the company or utility system, because the most important economic implications of life extension relate to the altered generation system expansion plan. Second, it should focus on the implications of uncertainty in order to understand the factors that most affect life extension benefits and identify risk management efforts. Third, the methodology should address multiple objectives, at a minimum, both economic and financial objectives

Neurocognitive mechanisms underlying value-based decision-making: from core values to economic value.

Science.gov (United States)

Brosch, Tobias; Sander, David

2013-01-01

VALUE PLAYS A CENTRAL ROLE IN PRACTICALLY EVERY ASPECT OF HUMAN LIFE THAT REQUIRES A DECISION: whether we choose between different consumer goods, whether we decide which person we marry or which political candidate gets our vote, we choose the option that has more value to us. Over the last decade, neuroeconomic research has mapped the neural substrates of economic value, revealing that activation in brain regions such as ventromedial prefrontal cortex (VMPFC), ventral striatum or posterior cingulate cortex reflects how much an individual values an option and which of several options he/she will choose. However, while great progress has been made exploring the mechanisms underlying concrete decisions, neuroeconomic research has been less concerned with the questions of why people value what they value, and why different people value different things. Social psychologists and sociologists have long been interested in core values, motivational constructs that are intrinsically linked to the self-schema and are used to guide actions and decisions across different situations and different time points. Core value may thus be an important determinant of individual differences in economic value computation and decision-making. Based on a review of recent neuroimaging studies investigating the neural representation of core values and their interactions with neural systems representing economic value, we outline a common framework that integrates the core value concept and neuroeconomic research on value-based decision-making.

Neurocognitive mechanisms underlying value-based decision-making: from core values to economic value

Science.gov (United States)

Brosch, Tobias; Sander, David

2013-01-01

Value plays a central role in practically every aspect of human life that requires a decision: whether we choose between different consumer goods, whether we decide which person we marry or which political candidate gets our vote, we choose the option that has more value to us. Over the last decade, neuroeconomic research has mapped the neural substrates of economic value, revealing that activation in brain regions such as ventromedial prefrontal cortex (VMPFC), ventral striatum or posterior cingulate cortex reflects how much an individual values an option and which of several options he/she will choose. However, while great progress has been made exploring the mechanisms underlying concrete decisions, neuroeconomic research has been less concerned with the questions of why people value what they value, and why different people value different things. Social psychologists and sociologists have long been interested in core values, motivational constructs that are intrinsically linked to the self-schema and are used to guide actions and decisions across different situations and different time points. Core value may thus be an important determinant of individual differences in economic value computation and decision-making. Based on a review of recent neuroimaging studies investigating the neural representation of core values and their interactions with neural systems representing economic value, we outline a common framework that integrates the core value concept and neuroeconomic research on value-based decision-making. PMID:23898252

Contributions of the Medial Prefrontal Cortex to Social Influence in Economic Decision-Making.

Science.gov (United States)

Apps, M A J; Ramnani, N

2017-09-01

Economic decisions are guided by highly subjective reward valuations (SVs). Often these SVs are over-ridden when individuals conform to social norms. Yet, the neural mechanisms that underpin the distinct processing of such normative reward valuations (NVs) are poorly understood. The dorsomedial and ventromedial portions of the prefrontal cortex (dmPFC/vmPFC) are putatively key regions for processing social and economic information respectively. However, the contribution of these regions to economic decisions guided by social norms is unclear. Using functional magnetic resonance imaging and computational modeling we examine the neural mechanisms underlying the processing of SVs and NVs. Subjects (n = 15) indicated either their own economic preferences or made similar choices based on a social norm-learnt during a training session. We found that that the vmPFC and dmPFC make dissociable contributions to the processing of SV and NV. Regions of the dmPFC processed "only" the value of rewards when making normative choices. In contrast, we identify a novel mechanism in the vmPFC for the coding of value. This region signaled both subjective and normative valuations, but activity was scaled positively for SV and negatively for NV. These results highlight some of the key mechanisms that underpin conformity and social influence in economic decision-making. © The Author 2017. Published by Oxford University Press.

Decision Analysis Tools for Volcano Observatories

Science.gov (United States)

Hincks, T. H.; Aspinall, W.; Woo, G.

2005-12-01

Staff at volcano observatories are predominantly engaged in scientific activities related to volcano monitoring and instrumentation, data acquisition and analysis. Accordingly, the academic education and professional training of observatory staff tend to focus on these scientific functions. From time to time, however, staff may be called upon to provide decision support to government officials responsible for civil protection. Recognizing that Earth scientists may have limited technical familiarity with formal decision analysis methods, specialist software tools that assist decision support in a crisis should be welcome. A review is given of two software tools that have been under development recently. The first is for probabilistic risk assessment of human and economic loss from volcanic eruptions, and is of practical use in short and medium-term risk-informed planning of exclusion zones, post-disaster response, etc. A multiple branch event-tree architecture for the software, together with a formalism for ascribing probabilities to branches, have been developed within the context of the European Community EXPLORIS project. The second software tool utilizes the principles of the Bayesian Belief Network (BBN) for evidence-based assessment of volcanic state and probabilistic threat evaluation. This is of practical application in short-term volcano hazard forecasting and real-time crisis management, including the difficult challenge of deciding when an eruption is over. An open-source BBN library is the software foundation for this tool, which is capable of combining synoptically different strands of observational data from diverse monitoring sources. A conceptual vision is presented of the practical deployment of these decision analysis tools in a future volcano observatory environment. Summary retrospective analyses are given of previous volcanic crises to illustrate the hazard and risk insights gained from use of these tools.

Hanford Site cleanup and transition: Risk data needs for decision making (Hanford risk data gap analysis decision guide)

International Nuclear Information System (INIS)

Gajewski, S.; Glantz, C.; Harper, B.; Bilyard, G.; Miller, P.

1995-10-01

Given the broad array of environmental problems, technical alternatives, and outcomes desired by different stakeholders at Hanford, DOE will have to make difficult resource allocations over the next few decades. Although some of these allocations will be driven purely by legal requirements, almost all of the major objectives of the cleanup and economic transition missions involve choices among alternative pathways. This study examined the following questions: what risk information is needed to make good decisions at Hanford; how do those data needs compare to the set(s) of risk data that will be generated by regulatory compliance activities and various non-compliance studies that are also concerned with risk? This analysis examined the Hanford Site missions, the Hanford Strategic Plan, known stakeholder values, and the most important decisions that have to be made at Hanford to determine a minimum domain of risk information required to make good decisions that will withstand legal, political, and technical scrutiny. The primary risk categories include (1) public health, (2) occupational health and safety, (3) ecological integrity, (4) cultural-religious welfare, and (5) socio-economic welfare

Cost estimate and economic issues associated with the MOX option (prior to DOE's record of decision)

International Nuclear Information System (INIS)

Reid, R.L.; Miller, J.W.

1997-04-01

Before the January 1997 Record of Decision (ROD), the U.S. Department of Energy Office of Fissile Materials Disposition (DOE-MD) evaluated three technologies for the disposition of ∼50 MT of surplus plutonium from defense-related programs-reactors, immobilization, and deep boreholes. As part of the process supporting the ROD, and comprehensive assessment of technical viability, cost, and schedule was conducted by DOE-MD and its national laboratory contractors. Oak Ridge National Laboratory managed and coordinated the life-cycle cost (LCC) assessment effort for this program. This report discusses the economic analysis methodology and the results for the reactor options considered prior to ROD. A secondary intent of the report is to discuss major technical and economic issues that impact cost and schedule. To evaluate the economics of the reactor option and other technologies on an equitable basis, a set of cost-estimating guidelines and a common cost-estimating format were utilized by all three technology teams. This report includes the major economic analysis assumptions and the comparative constant-dollar and discounted-dollar LCCs for all nine reactor scenarios

An economic theory of patient decision-making.

Science.gov (United States)

Stewart, Douglas O; DeMarco, Joseph P

2005-01-01

Patient autonomy, as exercised in the informed consent process, is a central concern in bioethics. The typical bioethicist's analysis of autonomy centers on decisional capacity--finding the line between autonomy and its absence. This approach leaves unexplored the structure of reasoning behind patient treatment decisions. To counter that approach, we present a microeconomic theory of patient decision-making regarding the acceptable level of medical treatment from the patient's perspective. We show that a rational patient's desired treatment level typically departs from the level yielding an absence of symptoms, the level we call ideal. This microeconomic theory demonstrates why patients have good reason not to pursue treatment to the point of absence of physical symptoms. We defend our view against possible objections that it is unrealistic and that it fails to adequately consider harm a patient may suffer by curtailing treatment. Our analysis is fruitful in various ways. It shows why decisions often considered unreasonable might be fully reasonable. It offers a theoretical account of how physician misinformation may adversely affect a patient's decision. It shows how billing costs influence patient decision-making. It indicates that health care professionals' beliefs about the 'unreasonable' attitudes of patients might often be wrong. It provides a better understanding of patient rationality that should help to ensure fuller information as well as increased respect for patient decision-making.

Decision tree analysis to evaluate dry cow strategies under UK conditions.

Science.gov (United States)

Berry, Elizabeth A; Hogeveen, Henk; Hillerton, J Eric

2004-11-01

Economic decisions on animal health strategies address the cost-benefit aspect along with animal welfare and public health concerns. Decision tree analysis at an individual cow level highlighted that there is little economic difference between the use of either dry cow antibiotic or an internal teat sealant in preventing a new intramammary infection in a cow free of infection in all quarters of the mammary gland at drying off. However, a potential net loss of over ł20 per cow might occur if the uninfected cow was left untreated. The only economically viable option, for a cow with one or more quarters infected at drying off, is antibiotic treatment, although a loss might still be incurred depending on the pathogen concerned and the cure rates achievable. There was a net loss for cows with quarters infected with Corynebacterium spp. at drying off, for both the teat sealant and untreated groups (ł22 and ł48, respectively) with only antibiotic-treated cows showing a gain.

Economic analysis and management of climatic risks

Energy Technology Data Exchange (ETDEWEB)

Hourcade, J.C. (Centre International de Recherche sur l' Environnement et le Developpement, 92 - Montrouge (France))

1994-01-01

This paper aims at framing the collective decision problem in the face of climate change. It shows why it would be irrelevant to handle it in the form of a classical decision under uncertainty framework where a cost-benefit analysis is carried out including probability distribution on damages and risk aversion coefficients. A sequential approach to policy making is then proposed as an alternative in order to account for the inertia of socio-economic dynamics and the value of information. A simple model illustrates the gap between these two approaches; it shows the importance of combining the investments on climatic research, innovation policies and so-called 'no regret' short term decisions. It shows the fact that, even if they can be considered as quantitatively moderate, these potentials have a critical impact on long term viability of development; they embed a very high information value, lengthening the learning time vis-a-vis potentially major but controversial risks. (author). 21 refs., 3 figs.

Individual differences in decision making: Drive and reward responsiveness affect strategic bargaining in economic games

Directory of Open Access Journals (Sweden)

Sanfey Alan G

2006-10-01

Full Text Available Abstract Background In the growing body of literature on economic decision making, the main focus has typically been on explaining aggregate behavior, with little interest in individual differences despite considerable between-subject variability in decision responses. In this study, we were interested in asking to what degree individual differences in fundamental psychological processes can mediate economic decision-making behavior. Methods Specifically, we studied a personality dimension that may influence economic decision-making, the Behavioral Activation System, (BAS which is composed of three components: Reward Responsiveness, Drive, and Fun Seeking. In order to assess economic decision making, we utilized two commonly-used tasks, the Ultimatum Game and Dictator Game. Individual differences in BAS were measured by completion of the BIS/BAS Scales, and correlations between the BAS scales and monetary offers made in the two tasks were computed. Results We found that higher scores on BAS Drive and on BAS Reward Responsiveness were associated with a pattern of higher offers on the Ultimatum Game, lower offers on the Dictator Game, and a correspondingly larger discrepancy between Ultimatum Game and Dictator Game offers. Conclusion These findings are consistent with an interpretation that high scores on Drive and Reward Responsiveness are associated with a strategy that first seeks to maximize the likelihood of reward, and then to maximize the amount of reward. More generally, these results suggest that there are additional factors other than empathy, fairness and selfishness that contribute to strategic decision-making.

Individual differences in decision making: Drive and Reward Responsiveness affect strategic bargaining in economic games.

Science.gov (United States)

Scheres, Anouk; Sanfey, Alan G

2006-10-18

In the growing body of literature on economic decision making, the main focus has typically been on explaining aggregate behavior, with little interest in individual differences despite considerable between-subject variability in decision responses. In this study, we were interested in asking to what degree individual differences in fundamental psychological processes can mediate economic decision-making behavior. Specifically, we studied a personality dimension that may influence economic decision-making, the Behavioral Activation System, (BAS) which is composed of three components: Reward Responsiveness, Drive, and Fun Seeking. In order to assess economic decision making, we utilized two commonly-used tasks, the Ultimatum Game and Dictator Game. Individual differences in BAS were measured by completion of the BIS/BAS Scales, and correlations between the BAS scales and monetary offers made in the two tasks were computed. We found that higher scores on BAS Drive and on BAS Reward Responsiveness were associated with a pattern of higher offers on the Ultimatum Game, lower offers on the Dictator Game, and a correspondingly larger discrepancy between Ultimatum Game and Dictator Game offers. These findings are consistent with an interpretation that high scores on Drive and Reward Responsiveness are associated with a strategy that first seeks to maximize the likelihood of reward, and then to maximize the amount of reward. More generally, these results suggest that there are additional factors other than empathy, fairness and selfishness that contribute to strategic decision-making.

Building bridges between perceptual and economic decision-making: neural and computational mechanisms

Directory of Open Access Journals (Sweden)

Christopher eSummerfield

2012-05-01

Full Text Available Investigation into the neural and computational bases of decision-making has proceeded in two parallel but distinct streams. Perceptual decision making (PDM is concerned with how observers detect, discriminate and categorise noisy sensory information. Economic decision making (EDM explores how options are selected on the basis of their reinforcement history. Traditionally, the subfields of PDM and EDM have employed different paradigms, proposed different mechanistic models, explored different brain regions, disagreed about whether decisions approach optimality. Nevertheless, we argue that there is a common framework for understanding decisions made in both domains, under which an agent has to combine sensory information (what is the stimulus with value information (what is it worth. We review computational models of the decision process typically used in PDM, based around the idea that decisions involve a serial integration of evidence, and assess their applicability to decisions between good and gambles. Subsequently, we consider the contribution of three key brain regions – the parietal cortex, the basal ganglia, and the orbitofrontal cortex – to perceptual and economic decision-making, with a focus on the mechanisms by which sensory and reward information are integrated during choice. We find that although the parietal cortex is often implicated in the integration of sensory evidence, there is evidence for its role in encoding the expected value of a decision. Similarly, although much research has emphasised the role of the striatum and orbitofrontal cortex in value-guided choices, they may play an important role in categorisation of perceptual information. In conclusion, we consider how findings from the two fields might be brought together, in order to move towards a general framework for understanding decision-making in humans and other primates.

Models of Economic Analysis

OpenAIRE

Adrian Ioana; Tiberiu Socaciu

2013-01-01

The article presents specific aspects of management and models for economic analysis. Thus, we present the main types of economic analysis: statistical analysis, dynamic analysis, static analysis, mathematical analysis, psychological analysis. Also we present the main object of the analysis: the technological activity analysis of a company, the analysis of the production costs, the economic activity analysis of a company, the analysis of equipment, the analysis of labor productivity, the anal...

Trustworthiness and Negative Affect Predict Economic Decision-Making

OpenAIRE

Nguyen, Christopher M.; Koenigs, Michael; Yamada, Torricia H.; Teo, Shu Hao; Cavanaugh, Joseph E.; Tranel, Daniel; Denburg, Natalie L.

2011-01-01

The Ultimatum Game (UG) is a widely used and well-studied laboratory model of economic decision-making. Here, we studied 129 healthy adults and compared demographic (i.e., age, gender, education), cognitive (i.e., intelligence, attention/working memory, speed, language, visuospatial, memory, executive functions), and personality (i.e., “Big Five”, positive affect, negative affect) variables between those with a “rational” versus an “irrational” response pattern on the UG. Our data indicated t...

Economic analysis of adaptive strategies for flood risk management under climate change

NARCIS (Netherlands)

Pol, van der T.D.; Ierland, van E.C.; Gabbert, S.G.M.

2017-01-01

Climate change requires reconsideration of flood risk management strategies. Cost-benefit analysis (CBA), an economic decision-support tool, has been widely applied to assess these strategies. This paper aims to describe and discuss probabilistic extensions of CBA to identify welfare-maximising

Theoretical and methodological construction of ecological economic and analysis of operations industrial enterprises

Directory of Open Access Journals (Sweden)

D.O. Gritsishen

2015-09-01

Full Text Available To form an effective analytical maintenance of economic and environmental security of industrial enterprises were justified assumptions of ecological and economic analysis. In particular, the goal (the formation of the effect of business enterprises, based on established causal link that allows you to get a comprehensive assessment to management decisions to change the parameters of governance in general and individual management subsystems aimed at ensuring the environmental and economic safety of industrial enterprise and task object (causal relationships that characterize the state of the relationship of economic activity to the environment and determine the level of environmental and economic security of industrial enterprise and object (economic activity in partial relationship with the environment that determine the level of environmental and economic security of industrial enterprises. It is possible to expand understanding of economic analysis in general and its importance in ensuring effective interaction with the enterprise environment.

Neuroethics transformation of economic rationality: implications for decision making in business

Directory of Open Access Journals (Sweden)

José-Félix Lozano

2017-02-01

Full Text Available The economy and business field has traditionally been dominated by a conception of calculator, strategic and profit-maximizing individual rationality. This model of rationality has important theoretical limitations and practical consequences. In recent decades the results of neuroethics´ research seems open new ways for understanding the practical rationality. These new routes, representing a revaluation of emotional and intuitive dimension in cognitive ability and have great relevance for business and economic decision making. The aim of this paper is to analyse the implications of a rational dialogic-friendly (cor-cordis concept for economic and business decision-making. Our work proposes a version of the dialogic-friendly practical rationality that integrate advances in neuroethics with the discursive rationality perspective in order to overcome the strategic rationality and emotivist intuitionism.

Why we should use animals to study economic decision making – a perspective

Directory of Open Access Journals (Sweden)

Tobias eKalenscher

2011-06-01

Full Text Available Despite the rich tradition in psychology and biology, animals as research subjects have never gained a similar acceptance in microeconomics research. With this article, we counter this trend of negligence and try to convey the message that animal models are an indispensible complement to the literature on human economic decision making. This perspective review departs from a description of the similarities in economic and evolutionary theories of human and animal decision making, with particular emphasis on the optimality aspect that both classes of theories have in common. In a second part, we outline that actual, empirically observed decisions often do not conform to the normative ideals of economic and ecological models, and that many of the behavioral violations found in humans can also be found in animals. In a third part, we make a case that the sense or nonsense of the behavioral violations of optimality principles in humans can best be understood from an evolutionary perspective, thus requiring animal research. Finally, we conclude with a critical discussion of the parallels and inherent differences in human and animal research.

Why We Should Use Animals to Study Economic Decision Making – A Perspective

Science.gov (United States)

Kalenscher, Tobias; van Wingerden, Marijn

2011-01-01

Despite the rich tradition in psychology and biology, animals as research subjects have never gained a similar acceptance in microeconomics research. With this article, we counter this trend of negligence and try to convey the message that animal models are an indispensible complement to the literature on human economic decision making. This perspective review departs from a description of the similarities in economic and evolutionary theories of human and animal decision making, with particular emphasis on the optimality aspect that both classes of theories have in common. In a second part, we outline that actual, empirically observed decisions often do not conform to the normative ideals of economic and ecological models, and that many of the behavioral violations found in humans can also be found in animals. In a third part, we make a case that the sense or nonsense of the behavioral violations of optimality principles in humans can best be understood from an evolutionary perspective, thus requiring animal research. Finally, we conclude with a critical discussion of the parallels and inherent differences in human and animal research. PMID:21731558

Neurocognitive Mechanisms Underlying Value-Based Decision-Making: From Core Values to Economic Value

Directory of Open Access Journals (Sweden)

Tobias eBrosch

2013-07-01

Full Text Available Value plays a central role in practically every aspect of human life that requires a decision: whether we choose between different consumer goods, whether we decide which person we marry or which political candidate gets our vote, we choose the option that has more value to us. Over the last decade, neuroeconomic research has mapped the neural substrates of economic value, revealing that activation in brain regions such as ventromedial prefrontal cortex (VMPFC, ventral striatum or posterior cingulate cortex reflects how much an individual values an option and which of several options he/she will choose. However, while great progress has been made exploring the mechanisms underlying concrete decisions, neuroeconomic research has been less concerned with the questions of why people value what they value, and why different people value different things. Social psychologists and sociologists have long been interested in core values, motivational constructs that are intrinsically linked to the self-schema and are used to guide actions and decisions across different situations and different time points. Core value may thus be an important determinant of individual differences in economic value computation and decision-making. Based on a review of recent neuroimaging studies investigating the neural representation of core values and their interactions with neural systems representing economic value, we outline a common framework that integrates the core value concept and neuroeconomic research on value-based decision-making.

Economic Recession, Job Vulnerability, and Tourism Decision Making: A Qualitative Comparative Analysis

OpenAIRE

Papatheodorou, A.; Pappas, Nikolaos

2016-01-01

Occupational uncertainty has a considerable effect upon consumer decisions during a recession, especially with respect to discretionary products and services such as tourism. Using Qualitative Comparative Analysis (QCA), the study examines the complex relations among job vulnerability, disposable income for tourism, marketing activities, and price and quality issues for Greek holiday makers returning from their vacations. The article also compares QCA with the two dominant linear methods of a...

Economic analysis of nuclear power plant for decision making in Thailand

International Nuclear Information System (INIS)

Siri-Udomrat, Thawee

2002-01-01

According to National Economic and Social Development's forecast, electricity demand in Thailand from now up to the year 2011 will rise more than 147 %. So, the Eighth-Ninth National Economic and Social Development Plans (NESDP) (1997-2006) has launched the main energy resources, imported oil, coal, imported coal, natural gas and hydro. From the Tenth NESDP up (2007-) may launch the energy option more, such as liquid natural gas and nuclear. Although Thailand has reserved lignite and natural gas enough for more than two centuries, we have found that the energy resources are inadequate and expected to be imported for over 60%. So nuclear energy is necessary and suitable for alternative source of energy. The main factors used for power generating cost calculation of nuclear power plant are capital investment cost, nuclear fuel cycle cost, operation and maintenance cost, and infrastructure cost. Consequently, the parameter which indicating the performance of power plant and power generation cost are load factor, net power rating, and economic life. Another variable group are interest rate, escalation rate, and discount rate. The overhead and operation cost are always changed due to the economic or other variants of interest rate, and out of schedule operation or the changing of fuel cost. In order to compare each type of power plant, we had to use present worth value analytical technique to calculate the the levelized energy cost (mills/kWh) by giving present worth value of average power generation cost equal to present worth value of total cost of the project and operation of power plant. The economic parameter will affect exchange rate and discount rate calculation. To assess the economic analysis of cost and cost benefit of Electricity Generating Authority of Thailand (EGAT) project, real interest rate for discount rate (social discount rate) will be calculated. By the year 1992-1998, the social discount rate of Thailand is estimated at about 7.59%. For studying

Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach

Directory of Open Access Journals (Sweden)

Deddy P. Koesrindartoto

2012-01-01

Full Text Available Interbank lending is one mechanism that can make shock, which is accepted by one bank spread to other banks (contagion. There are several researchers that focused their research on analyzing the effect of interbank lending to systemic risk. However, there is a few research that analyzed the effect of banks’ decision maker’s behavior, especially on the bank interbank lending to the systemic risk. In this research, the author creates an agent-based  simulation of the banking system to analyze the effect of banks’ decision maker’s behavior to systemic risk in economic downturn condition. The preliminary result from this research is for an economic downturn in a long time period, the banking system with a low net worth to the asset's ratio threshold will produce more default bank than the banking system with a high net worth to the asset's ratio threshold. However, for an economic downturn in small time period, banking system which all bank in their system has the higher net worth to assets ratio threshold will have the default bank first than the banking system which has the lower net worth to the asset's ratio threshold. Keywords: agent-based simulation, banker behavior, interbank lending, economic downturn

Using discriminant analysis for credit decision

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Gheorghiţa DINCĂ

2015-12-01

Full Text Available This paper follows to highlight the link between the results obtained applying discriminant analysis and lending decision. For this purpose, we have carried out the research on a sample of 24 Romanian private companies, pertaining to 12 different economic sectors, from I and II categories of Bucharest Stock Exchange, for the period 2010-2012. Our study works with two popular bankruptcy risk’s prediction models, the Altman model and the Anghel model. We have double-checked and confirmed the results of our research by comparing the results from applying the two fore-mentioned models as well as by checking existing debt commitments of each analyzed company to credit institutions during the 2010-2012 period. The aim of this paper was the classification of studied companies into potential bankrupt and non-bankrupt, to assist credit institutions in their decision to grant credit, understanding the approval or rejection algorithm of loan applications and even help potential investors in these ompanies.

Decision-Making Under Risk: Integrating Perspectives From Biology, Economics, and Psychology.

Science.gov (United States)

Mishra, Sandeep

2014-08-01

Decision-making under risk has been variably characterized and examined in many different disciplines. However, interdisciplinary integration has not been forthcoming. Classic theories of decision-making have not been amply revised in light of greater empirical data on actual patterns of decision-making behavior. Furthermore, the meta-theoretical framework of evolution by natural selection has been largely ignored in theories of decision-making under risk in the human behavioral sciences. In this review, I critically examine four of the most influential theories of decision-making from economics, psychology, and biology: expected utility theory, prospect theory, risk-sensitivity theory, and heuristic approaches. I focus especially on risk-sensitivity theory, which offers a framework for understanding decision-making under risk that explicitly involves evolutionary considerations. I also review robust empirical evidence for individual differences and environmental/situational factors that predict actual risky decision-making that any general theory must account for. Finally, I offer steps toward integrating various theoretical perspectives and empirical findings on risky decision-making. © 2014 by the Society for Personality and Social Psychology, Inc.

Political and Economic Decisions and Competition – What is the Efficient Antimonopoly Policy?

Directory of Open Access Journals (Sweden)

Irakli Lekvinadze

2014-03-01

Full Text Available This article discusses the influence of economic decisions which affect the antitrust and competition support policies. Many countries provide governmental initiatives for improving antirust legislation. There is an effort to develop efficient legislation, to define market boundaries, to identify dominating companies, and to prevent cartel development. A review of the literature has shown that refined legislation does not work. Qualified and non-politicized economic decisions are required to provide fair and equitable competition in the marketplace. The discussions of various researchers are profiled on the economic issues. This article analyzes The Republic of Georgia’s 20 year unique market experiences in Eastern Europe. Recommendations have been proposed to increase the effectiveness of an anti-monopoly policy. Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

Evidence for the credibility of health economic models for health policy decision-making

DEFF Research Database (Denmark)

Søgaard, Rikke; Lindholt, Jes S.

2012-01-01

OBJECTIVE: To investigate whether the credibility of health economic models of screening for abdominal aortic aneurysms for health policy decision-making has improved since 2005 when a systematic review by Campbell et al. concluded that reporting standards were poor and there was divergence between...... benefited from general advances in health economic modelling and some improvements in reporting were noted. However, the low level of agreement between studies in model structures and assumptions, and difficulty in justifying these (convergent validity), remain a threat to the credibility of health economic...... models. Decision-makers should not accept the results of a modelling study if the methods are not fully transparent and justified. Modellers should, whenever relevant, supplement a primary report of results with a technical report detailing and discussing the methodological choices made....

A Review of Consequences of Poverty on Economic Decision-Making: A Hypothesized Model of a Cognitive Mechanism.

Science.gov (United States)

Adamkovič, Matúš; Martončik, Marcel

2017-01-01

This review focuses on the issue of poverty affecting economic decision-making. By critically evaluating existing studies, the authors propose a structural model detailing the cognitive mechanism involved in how poverty negatively impacts economic decision-making, and explores evidence supporting the basis for the formation of this model. The suggested mechanism consists of a relationship between poverty and four other factors: (1) cognitive load (e.g., experiencing negative affect and stress); (2) executive functions (e.g., attention, working memory, and self-control); (3) intuition/deliberation in decision-making; and (4) economic decision-making (e.g., time-discounting and risk preference), with a final addition of financial literacy as a covariate. This paper focuses on shortfalls in published research, and delves further into the proposed model.

Decision support for utility environmental risk management

International Nuclear Information System (INIS)

Balson, W.E.; Wilson, D.S.

1991-01-01

This paper reviews a number of decision support methods developed and applied by Decision Focus Incorporated to help utility personnel manage current environmental problems. This work has been performed for the Environmental Risk Analysis Program of EPRI's Environment Division, and also for a number of electric utilities across the country. These are two distinct types of decision support software tools that have been created: economic risk management and environmental risk analysis. These types differ primarily in the identification of who will make a decision. Economic risk management tools are directed primarily at decisions made by electric utilities. Environmental risk analysis tools are directed primarily at decisions made by legislative or regulatory agencies, about which a utility may wish to comment

Strengthening national decision-making on immunization by building capacity for economic evaluation: Implementing ProVac in Europe.

Science.gov (United States)

Blau, Julia; Hoestlandt, Céline; D Clark, Andrew; Baxter, Louise; Felix Garcia, Ana Gabriela; Mounaud, Bérénice; Mosina, Liudmila

2015-05-07

-vaccine economic analysis, review of local evidence, recommending key data inputs, and support in presenting results to national decision makers. National cost-effectiveness studies were conducted in four countries: Albania (rotavirus vaccine [RV]), Azerbaijan (pneumococcal conjugate vaccine [PCV]), Croatia (PCV), and Georgia (PCV). All four countries improved their estimates of the burden of disease preventable by the new vaccines. National advisory bodies and ministries of health obtained economic evidence that helped Albania and Croatia to make decisions on introducing the new vaccines. Azerbaijan and Georgia used economic evidence to confirm previously made preliminary decisions to introduce PCV and make corresponding financial commitments. The study helped Albania to obtain access to affordable prices for rotavirus vaccines through participation in the UNICEF procurement mechanism for middle-income countries. Croatia was able to define the PCV price that would make its introduction cost-effective, and can use this figure as a basis for price negotiations. Despite some challenges due to competing national priorities, tight budgets for immunization, and lack of available national data, the ProVac IWG helped to build capacity of national health professionals, support decision-making for the introduction of new vaccines, and promote utilization of economic evidence for making decisions on immunization. This type of strong collaboration among international partners and countries should be scaled up, given that many other countries in the WHO European Region have expressed interest in receiving assistance from the ProVac IWG. Copyright © 2015. Published by Elsevier Ltd.

The impact of economic uncertainty on the energy decision making process: Nuclear energy in Israel

International Nuclear Information System (INIS)

Bargur, J.

1984-01-01

The study presented here is based on an analysis undertaken to evaluate the feasibility of establishing nuclear power plants in Israel. While the actual figures for the various sensitivity tests are somewhat disguised because of the sensitivity of the topic, the relative impact of moving from one assumption to another is presented and analysed. A matrix of qualitative results has been formulated for this analysis and, once these relationships have been established qualitatively, subjective weights have been applied to the various assumptions of the three most relevant parameters, the deviations from the most probable coal price, discount rate and level of investment. The analysis evaluates the impact of these weights on the decision as to whether the project prospects are most favourable, are of marginal value, or should be rejected. The significance of this analysis is its demonstration of the major role to be played by the economic planner within each country, and his responsibility to provide macro-economic guidelines for evaluating major infrastructural undertakings such as energy projects

FINANCIAL INFORMATION, EFFECTS OF FINANCIAL INFORMATION ON ECONOMIC DECISION

Directory of Open Access Journals (Sweden)

TAK ISA

2010-12-01

Full Text Available Financial information has, indisputably, an important effect in economics. To form an effective capital market, financial information must be reliable and accurate. Misleading financial information always has a negative impact on economic decision taken by users. It is known that financial information as the cornerstone of financial markets, can improve economic performance in several ways. Nowadays we are facing economic crisis due to irregularities of presentation of financial statements to users. Misunderstandings cause economic recession. Detection of fraudulent financial information, is an important issue facing the auditing profession. Currently, bankruptcy of companies around the world, leaves millions of people without jobs, this is caused by financial information which is manipulated by companies. The purpose of this paper is to analyze the effects of errors and manipulation committed in the financial information sector on the real economy. Also one of the purposes of this paper is to analyze error and fraud in financial statements how it effects the real economy and the reasons for committing fraud in financial statements. Also, several suggestions are included in this study about actions that can be taken to prevent errors and manipulation in financial information.

A difficult balancing act: policy actors' perspectives on using economic evaluation to inform health-care coverage decisions under the Universal Health Insurance Coverage scheme in Thailand.

Science.gov (United States)

Teerawattananon, Yot; Russell, Steve

2008-03-01

In Thailand, policymakers have come under increasing pressure to use economic evaluation to inform health-care resource allocation decisions, especially after the introduction of the Universal Health Insurance Coverage (UC) scheme. This article presents qualitative findings from research that assessed a range of policymakers' perspectives on the acceptability of using economic evaluation for the development of health-care benefit packages in Thailand. The policy analysis examined their opinions about existing decision-making processes for including health interventions in the UC benefit package, their understanding of health economic evaluation, and their attitudes, acceptance, and values relating to the use of the method. Semistructured interviews were conducted with 36 policy actors who play a major role or have some input into health resource allocation decisions within the Thai health-care system. These included 14 senior policymakers at the national level, 5 hospital directors, 10 health professionals, and 7 academics. Policy actors thought that economic evaluation information was relevant for decision-making because of the increasing need for rationing and more transparent criteria for making UC coverage decisions. Nevertheless, they raised several difficulties with using economic evaluation that would pose barriers to its introduction, including distrust in the method, conflicting philosophical positions and priorities compared to that of "health maximization," organizational allegiances, existing decision-making procedures that would be hard to change, and concerns about political pressure and acceptability.

Economic irrationality is optimal during noisy decision making.

Science.gov (United States)

Tsetsos, Konstantinos; Moran, Rani; Moreland, James; Chater, Nick; Usher, Marius; Summerfield, Christopher

2016-03-15

According to normative theories, reward-maximizing agents should have consistent preferences. Thus, when faced with alternatives A, B, and C, an individual preferring A to B and B to C should prefer A to C. However, it has been widely argued that humans can incur losses by violating this axiom of transitivity, despite strong evolutionary pressure for reward-maximizing choices. Here, adopting a biologically plausible computational framework, we show that intransitive (and thus economically irrational) choices paradoxically improve accuracy (and subsequent economic rewards) when decision formation is corrupted by internal neural noise. Over three experiments, we show that humans accumulate evidence over time using a "selective integration" policy that discards information about alternatives with momentarily lower value. This policy predicts violations of the axiom of transitivity when three equally valued alternatives differ circularly in their number of winning samples. We confirm this prediction in a fourth experiment reporting significant violations of weak stochastic transitivity in human observers. Crucially, we show that relying on selective integration protects choices against "late" noise that otherwise corrupts decision formation beyond the sensory stage. Indeed, we report that individuals with higher late noise relied more strongly on selective integration. These findings suggest that violations of rational choice theory reflect adaptive computations that have evolved in response to irreducible noise during neural information processing.

A Review of Consequences of Poverty on Economic Decision-Making: A Hypothesized Model of a Cognitive Mechanism

Directory of Open Access Journals (Sweden)

Matúš Adamkovič

2017-10-01

Full Text Available This review focuses on the issue of poverty affecting economic decision-making. By critically evaluating existing studies, the authors propose a structural model detailing the cognitive mechanism involved in how poverty negatively impacts economic decision-making, and explores evidence supporting the basis for the formation of this model. The suggested mechanism consists of a relationship between poverty and four other factors: (1 cognitive load (e.g., experiencing negative affect and stress; (2 executive functions (e.g., attention, working memory, and self-control; (3 intuition/deliberation in decision-making; and (4 economic decision-making (e.g., time-discounting and risk preference, with a final addition of financial literacy as a covariate. This paper focuses on shortfalls in published research, and delves further into the proposed model.

Economic analysis model for total energy and economic systems

International Nuclear Information System (INIS)

Shoji, Katsuhiko; Yasukawa, Shigeru; Sato, Osamu

1980-09-01

This report describes framing an economic analysis model developed as a tool of total energy systems. To prospect and analyze future energy systems, it is important to analyze the relation between energy system and economic structure. We prepared an economic analysis model which was suited for this purpose. Our model marks that we can analyze in more detail energy related matters than other economic ones, and can forecast long-term economic progress rather than short-term economic fluctuation. From view point of economics, our model is longterm multi-sectoral economic analysis model of open Leontief type. Our model gave us appropriate results for fitting test and forecasting estimation. (author)

Economic analysis of replacement regeneration and coppice regeneration in eucalyptus stands under risk conditions

Directory of Open Access Journals (Sweden)

Isabel Carolina de Lima Guedes

2011-09-01

Full Text Available Projects are by their very nature subject to conditions of uncertainty that obstruct the decision-making process. Uncertainties involving forestry projects are even greater, as they are combined with time of return on capital invested, being medium to long term. For successful forest planning, it is necessary to quantify uncertainties by converting them into risks. The decision on whether to adopt replacement regeneration or coppice regeneration in a forest stand is influenced by several factors, which include land availability for new forest crops, changes in project end use, oscillations in demand and technological advancement. This study analyzed the economic feasibility of replacement regeneration and coppice regeneration of eucalyptus stands, under deterministic and under risk conditions. Information was gathered about costs and revenues for charcoal production in order to structure the cash flow used in the economic analysis, adopting the Net Present Value method (VPL. Risk assessment was based on simulations running the Monte Carlo method. Results led to the following conclusions: replacement regeneration is economically viable, even if the future stand has the same productivity as the original stand; coppice regeneration is an economically viable option even if productivity is a mere 70% of the original stand (high-tree planted stand, the best risk-return ratio option is restocking the stand (replacement regeneration by one that is 20% more productive; the probabilistic analysis running the Monte Carlo method revealed that invariably there is economic viability for the various replacement and coppice regeneration options being studied, minimizing uncertainties and consequently increasing confidence in decision-making.

The Impact of Depression on Social Economic Decision Making [correction

NARCIS (Netherlands)

Harlé, K.M.; Allen, J.J.B.; Sanfey, A.G.

2010-01-01

Reports an error in "The impact of depression on social economic decision making" by Katia M. Harlé, John J. B. Allen and Alan G. Sanfey (Journal of Abnormal Psychology, 2010[May], Vol 119[2], 440-446). In the article, the last revision received date printed on the final page of the article was

Helping patients make better decisions: how to apply behavioral economics in clinical practice

Directory of Open Access Journals (Sweden)

Courtney MR

2014-10-01

Full Text Available Maureen Reni Courtney,1 Christy Spivey,2 Kathy M Daniel1 1College of Nursing, 2College of Business, University of Texas at Arlington, Arlington, TX, USA  Abstract: Clinicians are committed to effectively educating patients and helping them to make sound decisions concerning their own health care. However, how do clinicians determine what is effective education? How do they present information clearly and in a manner that patients understand and can use to make informed decisions? Behavioral economics (BE is a subfield of economics that can assist clinicians to better understand how individuals actually make decisions. BE research can help guide interactions with patients so that information is presented and discussed in a more deliberate and impactful way. We can be more effective providers of care when we understand the factors that influence how our patients make decisions, factors of which we may have been largely unaware. BE research that focuses on health care and medical decision making is becoming more widely known, and what has been reported suggests that BE interventions can be effective in the medical realm. The purpose of this article is to provide clinicians with an overview of BE decision science and derived practice strategies to promote more effective behavior change in patients.Keywords: nursing, message framing, defaults, incentives, social norms, commitment devices, health care

Verification of Decision-Analytic Models for Health Economic Evaluations: An Overview.

Science.gov (United States)

Dasbach, Erik J; Elbasha, Elamin H

2017-07-01

Decision-analytic models for cost-effectiveness analysis are developed in a variety of software packages where the accuracy of the computer code is seldom verified. Although modeling guidelines recommend using state-of-the-art quality assurance and control methods for software engineering to verify models, the fields of pharmacoeconomics and health technology assessment (HTA) have yet to establish and adopt guidance on how to verify health and economic models. The objective of this paper is to introduce to our field the variety of methods the software engineering field uses to verify that software performs as expected. We identify how many of these methods can be incorporated in the development process of decision-analytic models in order to reduce errors and increase transparency. Given the breadth of methods used in software engineering, we recommend a more in-depth initiative to be undertaken (e.g., by an ISPOR-SMDM Task Force) to define the best practices for model verification in our field and to accelerate adoption. Establishing a general guidance for verifying models will benefit the pharmacoeconomics and HTA communities by increasing accuracy of computer programming, transparency, accessibility, sharing, understandability, and trust of models.

A Costing Analysis for Decision Making Grid Model in Failure-Based Maintenance

Directory of Open Access Journals (Sweden)

Burhanuddin M. A.

2011-01-01

Full Text Available Background. In current economic downturn, industries have to set good control on production cost, to maintain their profit margin. Maintenance department as an imperative unit in industries should attain all maintenance data, process information instantaneously, and subsequently transform it into a useful decision. Then act on the alternative to reduce production cost. Decision Making Grid model is used to identify strategies for maintenance decision. However, the model has limitation as it consider two factors only, that is, downtime and frequency of failures. We consider third factor, cost, in this study for failure-based maintenance. The objective of this paper is to introduce the formulae to estimate maintenance cost. Methods. Fish bone analysis conducted with Ishikawa model and Decision Making Grid methods are used in this study to reveal some underlying risk factors that delay failure-based maintenance. The goal of the study is to estimate the risk factor that is, repair cost to fit in the Decision Making Grid model. Decision Making grid model consider two variables, frequency of failure and downtime in the analysis. This paper introduces third variable, repair cost for Decision Making Grid model. This approaches give better result to categorize the machines, reduce cost, and boost the earning for the manufacturing plant. Results. We collected data from one of the food processing factories in Malaysia. From our empirical result, Machine C, Machine D, Machine F, and Machine I must be in the Decision Making Grid model even though their frequency of failures and downtime are less than Machine B and Machine N, based on the costing analysis. The case study and experimental results show that the cost analysis in Decision Making Grid model gives more promising strategies in failure-based maintenance. Conclusions. The improvement of Decision Making Grid model for decision analysis with costing analysis is our contribution in this paper for

Economic Analysis of Improved Alkaline Water Electrolysis

International Nuclear Information System (INIS)

Kuckshinrichs, Wilhelm; Ketelaer, Thomas; Koj, Jan Christian

2017-01-01

Alkaline water electrolysis (AWE) is a mature hydrogen production technology and there exists a range of economic assessments for available technologies. For advanced AWEs, which may be based on novel polymer-based membrane concepts, it is of prime importance that development comes along with new configurations and technical and economic key process parameters for AWE that might be of interest for further economic assessments. This paper presents an advanced AWE technology referring to three different sites in Europe (Germany, Austria, and Spain). The focus is on financial metrics, the projection of key performance parameters of advanced AWEs, and further financial and tax parameters. For financial analysis from an investor’s (business) perspective, a comprehensive assessment of a technology not only comprises cost analysis but also further financial analysis quantifying attractiveness and supply/market flexibility. Therefore, based on cash flow (CF) analysis, a comprehensible set of metrics may comprise levelised cost of energy or, respectively, levelized cost of hydrogen (LCH) for cost assessment, net present value (NPV) for attractiveness analysis, and variable cost (VC) for analysis of market flexibility. The German AWE site turns out to perform best in all three financial metrics (LCH, NPV, and VC). Though there are slight differences in investment cost and operation and maintenance cost projections for the three sites, the major cost impact is due to the electricity cost. Although investment cost is slightly lower and labor cost is significantly lower in Spain, the difference can not outweigh the higher electricity cost compared to Germany. Given the assumption that the electrolysis operators are customers directly and actively participating in power markets, and based on the regulatory framework in the three countries, in this special case electricity cost in Germany is lowest. However, as electricity cost is profoundly influenced by political decisions as

Economic Analysis of Improved Alkaline Water Electrolysis

Energy Technology Data Exchange (ETDEWEB)

Kuckshinrichs, Wilhelm, E-mail: w.kuckshinrichs@fz-juelich.de; Ketelaer, Thomas; Koj, Jan Christian [Forschungszentrum Juelich, Institute for Energy and Climate Research – Systems Analysis and Technology Evaluation (IEK-STE), Juelich (Germany)

2017-02-20

Alkaline water electrolysis (AWE) is a mature hydrogen production technology and there exists a range of economic assessments for available technologies. For advanced AWEs, which may be based on novel polymer-based membrane concepts, it is of prime importance that development comes along with new configurations and technical and economic key process parameters for AWE that might be of interest for further economic assessments. This paper presents an advanced AWE technology referring to three different sites in Europe (Germany, Austria, and Spain). The focus is on financial metrics, the projection of key performance parameters of advanced AWEs, and further financial and tax parameters. For financial analysis from an investor’s (business) perspective, a comprehensive assessment of a technology not only comprises cost analysis but also further financial analysis quantifying attractiveness and supply/market flexibility. Therefore, based on cash flow (CF) analysis, a comprehensible set of metrics may comprise levelised cost of energy or, respectively, levelized cost of hydrogen (LCH) for cost assessment, net present value (NPV) for attractiveness analysis, and variable cost (VC) for analysis of market flexibility. The German AWE site turns out to perform best in all three financial metrics (LCH, NPV, and VC). Though there are slight differences in investment cost and operation and maintenance cost projections for the three sites, the major cost impact is due to the electricity cost. Although investment cost is slightly lower and labor cost is significantly lower in Spain, the difference can not outweigh the higher electricity cost compared to Germany. Given the assumption that the electrolysis operators are customers directly and actively participating in power markets, and based on the regulatory framework in the three countries, in this special case electricity cost in Germany is lowest. However, as electricity cost is profoundly influenced by political decisions as

Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds

OpenAIRE

Säve-Söderbergh, Jenny

2005-01-01

Recent economics literature has devoted attention towards motives beyond the typical selfish norm for economic decision-making. Yet, it still remains a puzzle who allows such considerations to govern their behavior. This paper contributes by empirically identifying some features which differentiate individuals who choose to bear the cost of ethically guided economic decision-making from others. Using unique Swedish data on individual pension portfolio choices, we find that education, the choi...

Methods for Health Economic Evaluation of Vaccines and Immunization Decision Frameworks: A Consensus Framework from a European Vaccine Economics Community.

Science.gov (United States)

Ultsch, Bernhard; Damm, Oliver; Beutels, Philippe; Bilcke, Joke; Brüggenjürgen, Bernd; Gerber-Grote, Andreas; Greiner, Wolfgang; Hanquet, Germaine; Hutubessy, Raymond; Jit, Mark; Knol, Mirjam; von Kries, Rüdiger; Kuhlmann, Alexander; Levy-Bruhl, Daniel; Perleth, Matthias; Postma, Maarten; Salo, Heini; Siebert, Uwe; Wasem, Jürgen; Wichmann, Ole

2016-03-01

Incremental cost-effectiveness and cost-utility analyses [health economic evaluations (HEEs)] of vaccines are routinely considered in decision making on immunization in various industrialized countries. While guidelines advocating more standardization of such HEEs (mainly for curative drugs) exist, several immunization-specific aspects (e.g. indirect effects or discounting approach) are still a subject of debate within the scientific community. The objective of this study was to develop a consensus framework for HEEs of vaccines to support the development of national guidelines in Europe. A systematic literature review was conducted to identify prevailing issues related to HEEs of vaccines. Furthermore, European experts in the field of health economics and immunization decision making were nominated and asked to select relevant aspects for discussion. Based on this, a workshop was held with these experts. Aspects on 'mathematical modelling', 'health economics' and 'decision making' were debated in group-work sessions (GWS) to formulate recommendations and/or--if applicable--to state 'pros' and 'contras'. A total of 13 different aspects were identified for modelling and HEE: model selection, time horizon of models, natural disease history, measures of vaccine-induced protection, duration of vaccine-induced protection, indirect effects apart from herd protection, target population, model calibration and validation, handling uncertainty, discounting, health-related quality of life, cost components, and perspectives. For decision making, there were four aspects regarding the purpose and the integration of HEEs of vaccines in decision making as well as the variation of parameters within uncertainty analyses and the reporting of results from HEEs. For each aspect, background information and an expert consensus were formulated. There was consensus that when HEEs are used to prioritize healthcare funding, this should be done in a consistent way across all interventions

A life cycle analysis approach to D and D decision-making

International Nuclear Information System (INIS)

Yuracko, K.L.; Gresalfi, M.; Yerace, P.; Krstich, M.; Gerrick, D.

1998-05-01

This paper describes a life cycle analysis (LCA) approach that makes decontamination and decommissioning (D and D) of US Department of Energy facilities more efficient and more responsive to the concerns of the society. With the considerable complexity of D and D projects and their attendant environmental and health consequences, projects can no longer be designed based on engineering and economic criteria alone. Using the LCA D and D approach, the evaluation of material disposition alternatives explicitly includes environmental impacts, health and safety impacts, socioeconomic impacts, and stakeholder attitudes -- in addition to engineering and economic criteria. Multi-attribute decision analysis is used to take into consideration the uncertainties and value judgments that are an important part of all material disposition decisions. Use of the LCA D and D approach should lead to more appropriate selections of material disposition pathways and a decision-making process that is both understandable and defensible. The methodology and procedures of the LCA D and D approach are outlined and illustrated by an application of the approach at the Department of Energy's West Valley Demonstration Project. Specifically, LCA was used to aid decisions on disposition of soil and concrete from the Tank Pad D and D Project. A decision tree and the Pollution Prevention/Waste Minimization Users Guide for Environmental Restoration Projects were used to identify possible alternatives for disposition of the soil and concrete. Eight alternatives encompassing source reduction, segregation, treatment, and disposal were defined for disposition of the soil; two alternatives were identified for disposition of the concrete. Preliminary results suggest that segregation and treatment are advantageous in the disposition of both the soil and the concrete. This and other recent applications illustrate the strength and ease of application of the LCA D and D approach

The Economic Burden of Urinary Tract Infection and Pressure Ulceration in Acute Traumatic Spinal Cord Injury Admissions: Evidence for Comparative Economics and Decision Analytics from a Matched Case-Control Study.

Science.gov (United States)

White, Barry A B; Dea, Nicolas; Street, John T; Cheng, Christiana L; Rivers, Carly S; Attabib, Najmedden; Kwon, Brian K; Fisher, Charles G; Dvorak, Marcel F

2017-10-15

Secondary complications of spinal cord injury (SCI) are a burden to affected individuals and the rest of society. There is limited evidence of the economic burden or cost of complications in SCI populations in Canada, however, which is necessary for comparative economic analyses and decision analytic modeling of possible solutions to these common health problems. Comparative economic analyses can inform resource allocation decisions, but the outputs are only as good as the inputs. In this article, new evidence of the excess or incremental costs of urinary tract infection (UTI) and pressure ulceration (PU) in acute traumatic SCI from an exploratory case series analysis of admissions to a Level I specialized Canadian spine facility (2008-2013) is presented. Participants in a national SCI registry were case-control matched (1:1) on the predicted probability of experiencing UTI or PU during initial acute SCI admission. The excess costs of UTI and PU are estimated as the mean of the differences in total direct acute SCI admission costs (length of stay, accommodation, nursing, pharmacy) from the perspective of the admitting facility between participants matched or paired on demographic and SCI characteristics. Even relatively minor UTI and PU, respectively, added an average of $7,790 (standard deviation [SD] $6,267) and $18,758 (SD $27,574) to the direct cost of acute SCI admission in 2013 Canadian dollars (CAD). This case series analysis established evidence of the excess costs of UTI and PU in acute SCI admissions, which will support decision-informing analyses in SCI.

A decision analysis framework for stakeholder involvement and learning in groundwater management

Science.gov (United States)

Karjalainen, T. P.; Rossi, P. M.; Ala-aho, P.; Eskelinen, R.; Reinikainen, K.; Kløve, B.; Pulido-Velazquez, M.; Yang, H.

2013-12-01

Multi-criteria decision analysis (MCDA) methods are increasingly used to facilitate both rigorous analysis and stakeholder involvement in natural and water resource planning. Decision-making in that context is often complex and multi-faceted with numerous trade-offs between social, environmental and economic impacts. However, practical applications of decision-support methods are often too technically oriented and hard to use, understand or interpret for all participants. The learning of participants in these processes is seldom examined, even though successful deliberation depends on learning. This paper analyzes the potential of an interactive MCDA framework, the decision analysis interview (DAI) approach, for facilitating stakeholder involvement and learning in groundwater management. It evaluates the results of the MCDA process in assessing land-use management alternatives in a Finnish esker aquifer area where conflicting land uses affect the groundwater body and dependent ecosystems. In the assessment process, emphasis was placed on the interactive role of the MCDA tool in facilitating stakeholder participation and learning. The results confirmed that the structured decision analysis framework can foster learning and collaboration in a process where disputes and diverse interests are represented. Computer-aided interviews helped the participants to see how their preferences affected the desirability and ranking of alternatives. During the process, the participants' knowledge and preferences evolved as they assessed their initial knowledge with the help of fresh scientific information. The decision analysis process led to the opening of a dialogue, showing the overall picture of the problem context and the critical issues for the further process.

Heart strings and purse strings: Carryover effects of emotions on economic decisions.

Science.gov (United States)

Lerner, Jennifer S; Small, Deborah A; Loewenstein, George

2004-05-01

We examined the impact of specific emotions on the endowment effect, the tendency for selling prices to exceed buying or "choice" prices for the same object. As predicted by appraisal-tendency theory, disgust induced by a prior, irrelevant situation carried over to normatively unrelated economic decisions, reducing selling and choice prices and eliminating the endowment effect. Sadness also carried over, reducing selling prices but increasing choice prices--producing a "reverse endowment effect" in which choice prices exceeded selling prices. The results demonstrate that incidental emotions can influence decisions even when real money is at stake, and that emotions of the same valence can have opposing effects on such decisions.

Duopoly Market Analysis within One-Shot Decision Framework with Asymmetric Possibilistic Information

Directory of Open Access Journals (Sweden)

Peijun Guo

2010-12-01

Full Text Available In this paper, a newly emerging duopoly market with a short life cycle is analyzed. The partially known information of market is characterized by the possibility distribution of the parameter in the demand function. Since the life cycle of the new product is short, how many products should be produced by two rival firms is a typical one-shot decision problem. Within the one-shot decision framework, the possibilistic Cournot equilibrium is obtained for the optimal production level of each firm in a duopoly market with asymmetrical possibilistic information. The analysis results show that the proposed approaches are reasonable for one-shot decision problems, which are extensively encountered in business and economics.

The role (or not) of economic evaluation at the micro level: can Bourdieu's theory provide a way forward for clinical decision-making?

Science.gov (United States)

Lessard, Chantale; Contandriopoulos, André-Pierre; Beaulieu, Marie-Dominique

2010-06-01

Despite increasing interest in health economic evaluation, investigations have shown limited use by micro (clinical) level decision-makers. A considerable amount of health decisions take place daily at the point of the clinical encounter; especially in primary care. Since every decision has an opportunity cost, ignoring economic information in family physicians' (FPs) decision-making may have a broad impact on health care efficiency. Knowledge translation of economic evaluation is often based on taken-for-granted assumptions about actors' interests and interactions, neglecting much of the complexity of social reality. Health economics literature frequently assumes a rational and linear decision-making process. Clinical decision-making is in fact a complex social, dynamic, multifaceted process, involving relationships and contextual embeddedness. FPs are embedded in complex social networks that have a significant impact on skills, attitudes, knowledge, practices, and on the information being used. Because of their socially constructed nature, understanding preferences, professional culture, practices, and knowledge translation requires serious attention to social reality. There has been little exploration by health economists of whether the problem may be more fundamental and reside in a misunderstanding of the process of decision-making. There is a need to enhance our understanding of the role of economic evaluation in decision-making from a disciplinary perspective different than health economics. This paper argues for a different conceptualization of the role of economic evaluation in FPs' decision-making, and proposes Bourdieu's sociological theory as a research framework. Bourdieu's theory of practice illustrates how the context-sensitive nature of practice must be understood as a socially constituted practical knowledge. The proposed approach could substantially contribute to a more complex understanding of the role of economic evaluation in FPs' decision

Use of classical criterions of a decision making for choice of measures on decrease of economic damage from nuclear and radiation accidents

International Nuclear Information System (INIS)

Rylov, M.I.; Kamynov, Sh.V.; Mozhaev, A.S.; Anisimov, N.A.; Nikitin, V.S.

2004-01-01

Application of classical criteria of decision making for choice of measures on the decrease of economic damage from possible nuclear and radiation accidents during spent fuel unloading from nuclear submarines and storage in the process of their utilization was demonstrated. Economic damage was chosen as optimization index, three versions of possible accidents and limited number of measures on the decrease of their effect were treated for illustration of the suggested approach. On the base of analysis of classical criteria the optimal strategy for decrease of economic damage was chosen [ru

Behavioral Economics and Marketing in Aid of Decision Making Among the Poor

OpenAIRE

Bertrand, Marianne; Shafir, Eldar; Mullainathan, Sendhil

2006-01-01

This article considers several aspects of the economic decision making of the poor from the perspective of behavioral economics, and it focuses on potential contributions from marketing. Among other things, the authors consider some relevant facets of the social and institutional environments in which the poor interact, and they review some behavioral patterns that are likely to arise in these contexts. A behaviorally more informed perspective can help make sense of what might otherwise be co...

Applying health economics for policy decision making: do devices differ from drugs?

Science.gov (United States)

Sorenson, Corinna; Tarricone, Rosanna; Siebert, Markus; Drummond, Michael

2011-05-01

Medical devices pose unique challenges for economic evaluation and associated decision-making processes that differ from pharmaceuticals. We highlight and discuss these challenges in the context of cardiac device therapy, based on a systematic review of relevant economic evaluations. Key challenges include practical difficulties in conducting randomized clinical trials, allowing for a 'learning curve' and user characteristics, accounting for the wider organizational impacts of introducing new devices, and allowing for variations in product characteristics and prices over time.

Decision making for economic development; A case study of peat and selective alternative energy developments on the island of Newfoundland

Energy Technology Data Exchange (ETDEWEB)

Rodgers, B. (Dept. of Mines and Energy, St. John' s, NF (Canada))

1994-02-01

This paper highlights the essential issues and concepts that must be understood and addressed in the performance of sound economic decision making in peat production. The desired result is the identification of a practical, yet thorough, approach to economic analysis. The paper's highlights are summarized by the following nine recommendations: clearly determine the objective; clearly determine the perspective; identify project owners; consider all relevant benefits and all relevant costs; focus on net benefits; consider the opportunity cost of alternative opportunities; take care to avoid double counting; understand and evaluate the relevant risks and recognize that economic success requires global competitiveness. 4 figs., 5 tabs.

Multi-criteria decision analysis with probabilistic risk assessment for the management of contaminated ground water

International Nuclear Information System (INIS)

Khadam, Ibrahim M.; Kaluarachchi, Jagath J.

2003-01-01

Traditionally, environmental decision analysis in subsurface contamination scenarios is performed using cost-benefit analysis. In this paper, we discuss some of the limitations associated with cost-benefit analysis, especially its definition of risk, its definition of cost of risk, and its poor ability to communicate risk-related information. This paper presents an integrated approach for management of contaminated ground water resources using health risk assessment and economic analysis through a multi-criteria decision analysis framework. The methodology introduces several important concepts and definitions in decision analysis related to subsurface contamination. These are the trade-off between population risk and individual risk, the trade-off between the residual risk and the cost of risk reduction, and cost-effectiveness as a justification for remediation. The proposed decision analysis framework integrates probabilistic health risk assessment into a comprehensive, yet simple, cost-based multi-criteria decision analysis framework. The methodology focuses on developing decision criteria that provide insight into the common questions of the decision-maker that involve a number of remedial alternatives. The paper then explores three potential approaches for alternative ranking, a structured explicit decision analysis, a heuristic approach of importance of the order of criteria, and a fuzzy logic approach based on fuzzy dominance and similarity analysis. Using formal alternative ranking procedures, the methodology seeks to present a structured decision analysis framework that can be applied consistently across many different and complex remediation settings. A simple numerical example is presented to demonstrate the proposed methodology. The results showed the importance of using an integrated approach for decision-making considering both costs and risks. Future work should focus on the application of the methodology to a variety of complex field conditions to

Economic and Financial Analysis Tools | Energy Analysis | NREL

Science.gov (United States)

Economic and Financial Analysis Tools Economic and Financial Analysis Tools Use these economic and . Job and Economic Development Impact (JEDI) Model Use these easy-to-use, spreadsheet-based tools to analyze the economic impacts of constructing and operating power generation and biofuel plants at the

An analysis of medical decision making

International Nuclear Information System (INIS)

Lusted, L.B.

1977-01-01

Medical decision-making studies continue to focus on two questions: How do physicians make decisions and how should physicians make decisions. Researchers pursuing the first question emphasize human cognitive processes and the programming of symbol systems to model the observed human behaviour. Those researchers concentrating on the second question assume that there is a standard of performance against which physicians' decisions can be judged, and to help the physician improve his performance an array of tools is proposed. These tools include decision trees, Bayesian analysis, decision matrices, receiver operating characteristic (ROC) analysis, and cost-benefit considerations including utility measures. Both questions must be answered in an ethical context where ethics and decision analysis are intertwined. (author)

Social-economical decision making in current and remitted major depression.

Science.gov (United States)

Pulcu, E; Thomas, E J; Trotter, P D; McFarquhar, M; Juhasz, G; Sahakian, B J; Deakin, J F W; Anderson, I M; Zahn, R; Elliott, R

2015-04-01

Prosocial emotions related to self-blame are important in guiding human altruistic decisions. These emotions are elevated in major depressive disorder (MDD), such that MDD has been associated with guilt-driven pathological hyper-altruism. However, the impact of such emotional impairments in MDD on different types of social decision-making is unknown. In order to address this issue, we investigated different kinds of altruistic behaviour (interpersonal cooperation and fund allocation, altruistic punishment and charitable donation) in 33 healthy subjects, 35 patients in full remission (unmedicated) and 24 currently depressed patients (11 on medication) using behavioural-economical paradigms. We show a significant main effect of clinical status on altruistic decisions (p = 0.04) and a significant interaction between clinical status and type of altruistic decisions (p = 0.03). More specifically, symptomatic patients defected significantly more in the Prisoner's Dilemma game (p guilt elicited by receiving unfair financial offers in the Ultimatum Game (p guilt-driven pathological hyper-altruism hypothesis in depression. There were also differences in both current and remitted patients in the relationship between altruistic behaviour and pathological self-blaming, suggesting an important role for these emotions in moral and social decision-making abnormalities in depression.

Economic Decision Making: Application of the Theory of Complex Systems

Science.gov (United States)

Kitt, Robert

In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore complex systems. It is discussed that the rapid change in global consumer behaviour is underway, that further increases the complexity in business and management. For policy making under complexity, following principles are offered: openness and international competition, tolerance and variety of ideas, self-reliability and low dependence on external help. The chapter contains four applications that build on the theoretical motivation of complexity in social systems. The first application demonstrates that small economies have good prospects to gain from the global processes underway, if they can demonstrate production flexibility, reliable business ethics and good risk management. The second application elaborates on and discusses the opportunities and challenges in decision making under complexity from macro and micro economic perspective. In this environment, the challenges for corporate management are being also permanently changed: the balance between short term noise and long term chaos whose attractor includes customers, shareholders and employees must be found. The emergence of chaos in economic relationships is demonstrated by a simple system of differential equations that relate the stakeholders described above. The chapter concludes with two financial applications: about debt and risk management. The non-equilibrium economic establishment leads to additional problems by using excessive borrowing; unexpected downturns in economy can more easily kill companies. Finally, the demand for quantitative improvements in risk management is postulated. Development of the financial markets has triggered non-linearity to spike in prices of various production articles such as agricultural and other commodities that has added market

Multi-Criteria Decision Making for a Spatial Decision Support System on the Analysis of Changing Risk

Science.gov (United States)

Olyazadeh, Roya; van Westen, Cees; Bakker, Wim H.; Aye, Zar Chi; Jaboyedoff, Michel; Derron, Marc-Henri

2014-05-01

Natural hazard risk management requires decision making in several stages. Decision making on alternatives for risk reduction planning starts with an intelligence phase for recognition of the decision problems and identifying the objectives. Development of the alternatives and assigning the variable by decision makers to each alternative are employed to the design phase. Final phase evaluates the optimal choice by comparing the alternatives, defining indicators, assigning a weight to each and ranking them. This process is referred to as Multi-Criteria Decision Making analysis (MCDM), Multi-Criteria Evaluation (MCE) or Multi-Criteria Analysis (MCA). In the framework of the ongoing 7th Framework Program "CHANGES" (2011-2014, Grant Agreement No. 263953) of the European Commission, a Spatial Decision Support System is under development, that has the aim to analyse changes in hydro-meteorological risk and provide support to selecting the best risk reduction alternative. This paper describes the module for Multi-Criteria Decision Making analysis (MCDM) that incorporates monetary and non-monetary criteria in the analysis of the optimal alternative. The MCDM module consists of several components. The first step is to define criteria (or Indicators) which are subdivided into disadvantages (criteria that indicate the difficulty for implementing the risk reduction strategy, also referred to as Costs) and advantages (criteria that indicate the favorability, also referred to as benefits). In the next step the stakeholders can use the developed web-based tool for prioritizing criteria and decision matrix. Public participation plays a role in decision making and this is also planned through the use of a mobile web-version where the general local public can indicate their agreement on the proposed alternatives. The application is being tested through a case study related to risk reduction of a mountainous valley in the Alps affected by flooding. Four alternatives are evaluated in

The privatization of electricity distribution in Turkey: A legal and economic analysis

International Nuclear Information System (INIS)

Ulusoy, Ali; Oguz, Fuat

2007-01-01

This paper analyzes the recent regulatory reform in the Turkish Electricity Distribution Market from a legal and economic perspective. We highlight tensions between the judiciary, politicians and bureaucracy and discuss their economic consequences. The paper engages in a discussion of economic consequences of legal procedures. We stress interactions between legal decisions and economic institutions. The historical positions of the Constitutional Court and Danistay (Council of State), on privatizations have been ambivalent and it is hard to qualify them as an incentive for privatization and reform, despite some recent liberal decisions. We address reasons behind their decisions and offer some suggestions toward improving the privatization process

Towards a Theoretical Construct for Modelling Smallholders’ Forestland-Use Decisions: What Can We Learn from Agriculture and Forest Economics?

Directory of Open Access Journals (Sweden)

Kahlil Baker

2017-09-01

Full Text Available Academic research on smallholders’ forestland-use decisions is regularly addressed in different streams of literature using different theoretical constructs that are independently incomplete. In this article, we propose a theoretical construct for modelling smallholders’ forestland-use decisions intended to serve in the guidance and operationalization of future models for quantitative analysis. Our construct is inspired by the sub-disciplines of forestry and agricultural economics with a crosscutting theme of how transaction costs drive separability between consumption and production decisions. Our results help explain why exogenous variables proposed in the existing literature are insufficient at explaining smallholders’ forestland-use decisions, and provide theoretical context for endogenizing characteristics of the household, farm and landscape. Smallholders’ forestland-use decisions are best understood in an agricultural context of competing uses for household assets and interdependent consumption and production decisions. Forest production strategies range from natural regeneration to intensive management of the forest resource to co-jointly produce market and non-market values. Due to transaction costs, decision prices are best represented by their shadow as opposed to market prices. Shadow prices are shaped by endogenous smallholder-specific preferences for leisure, non-market values, time, risk, and uncertainty. Our proposed construct is intended to provide a theoretical basis to assist modellers in the selection of variables for quantitative analysis.

Economic analysis of fuel treatments

Science.gov (United States)

D. Evan Mercer; Jeffrey P. Prestemon

2012-01-01

The economics of wildfire is complicated because wildfire behavior depends on the spatial and temporal scale at which management decisions made, and because of uncertainties surrounding the results of management actions. Like the wildfire processes they seek to manage, interventions through fire prevention programs, suppression, and fuels management are scale dependent...

A Review of Consequences of Poverty on Economic Decision-Making: A Hypothesized Model of a Cognitive Mechanism

OpenAIRE

Adamkovič, Matúš; Martončik, Marcel

2017-01-01

This review focuses on the issue of poverty affecting economic decision-making. By critically evaluating existing studies, the authors propose a structural model detailing the cognitive mechanism involved in how poverty negatively impacts economic decision-making, and explores evidence supporting the basis for the formation of this model. The suggested mechanism consists of a relationship between poverty and four other factors: (1) cognitive load (e.g., experiencing negative affect and stress...

The International Decision Support Initiative Reference Case for Economic Evaluation: An Aid to Thought.

Science.gov (United States)

Wilkinson, Thomas; Sculpher, Mark J; Claxton, Karl; Revill, Paul; Briggs, Andrew; Cairns, John A; Teerawattananon, Yot; Asfaw, Elias; Lopert, Ruth; Culyer, Anthony J; Walker, Damian G

2016-12-01

Policymakers in high-, low-, and middle-income countries alike face challenging choices about resource allocation in health. Economic evaluation can be useful in providing decision makers with the best evidence of the anticipated benefits of new investments, as well as their expected opportunity costs-the benefits forgone of the options not chosen. To guide the decisions of health systems effectively, it is important that the methods of economic evaluation are founded on clear principles, are applied systematically, and are appropriate to the decision problems they seek to inform. The Bill and Melinda Gates Foundation, a major funder of economic evaluations of health technologies in low- and middle-income countries (LMICs), commissioned a "reference case" through the International Decision Support Initiative (iDSI) to guide future evaluations, and improve both the consistency and usefulness to decision makers. The iDSI Reference Case draws on previous insights from the World Health Organization, the US Panel on Cost-Effectiveness in Health Care, and the UK National Institute for Health and Care Excellence. Comprising 11 key principles, each accompanied by methodological specifications and reporting standards, the iDSI Reference Case also serves as a means of identifying priorities for methods research, and can be used as a framework for capacity building and technical assistance in LMICs. The iDSI Reference Case is an aid to thought, not a substitute for it, and should not be followed slavishly without regard to context, culture, or history. This article presents the iDSI Reference Case and discusses the rationale, approach, components, and application in LMICs. Copyright © 2016 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

Economic Consequence Analysis of Disasters: The ECAT Software Tool

Energy Technology Data Exchange (ETDEWEB)

Rose, Adam; Prager, Fynn; Chen, Zhenhua; Chatterjee, Samrat; Wei, Dan; Heatwole, Nathaniel; Warren, Eric

2017-04-15

This study develops a methodology for rapidly obtaining approximate estimates of the economic consequences from numerous natural, man-made and technological threats. This software tool is intended for use by various decision makers and analysts to obtain estimates rapidly. It is programmed in Excel and Visual Basic for Applications (VBA) to facilitate its use. This tool is called E-CAT (Economic Consequence Analysis Tool) and accounts for the cumulative direct and indirect impacts (including resilience and behavioral factors that significantly affect base estimates) on the U.S. economy. E-CAT is intended to be a major step toward advancing the current state of economic consequence analysis (ECA) and also contributing to and developing interest in further research into complex but rapid turnaround approaches. The essence of the methodology involves running numerous simulations in a computable general equilibrium (CGE) model for each threat, yielding synthetic data for the estimation of a single regression equation based on the identification of key explanatory variables (threat characteristics and background conditions). This transforms the results of a complex model, which is beyond the reach of most users, into a "reduced form" model that is readily comprehensible. Functionality has been built into E-CAT so that its users can switch various consequence categories on and off in order to create customized profiles of economic consequences of numerous risk events. E-CAT incorporates uncertainty on both the input and output side in the course of the analysis.

Economic analysis of radioactive waste storage and disposal projects

International Nuclear Information System (INIS)

Kleinen, P.J.; Starnes, R.B.

1995-01-01

Radioactive waste storage and disposal efforts present challenging issues for cost and economic analyses. In particular, legal requirements for states and compact areas to develop radioactive waste disposal sites, combined with closure of some sites, have placed urgency on planning, locating, and constructing storage and disposal sites. Cost analyses of potential projects are important to the decision processes. Principal objectives for cost analyses for projects are to identify all activities, covering the entire project life cycle, and to develop costs for those activities using methods that allow direct comparisons between competing project alternatives. For radioactive waste projects, long project lives ranging from tens of years to 100 or more years must be considered. Alternative, and competing, technologies, designs, and operating plans must be evaluated. Thorough base cost estimates must be made for all project phases: planning, development, licensing/permitting, construction, operations, and maintenance, closure, and post-closure/institutional care. Economic analysis procedures need to accommodate the specific features of each project alternative and facilitate cost comparisons between differing alternatives. Economic analysis assumptions must be developed to address the unusually long project lives involved in radioactive waste projects

The economic burden of dry eye disease in the United States: a decision tree analysis.

Science.gov (United States)

Yu, Junhua; Asche, Carl V; Fairchild, Carol J

2011-04-01

The aim of this study was to estimate both the direct and indirect annual cost of managing dry eye disease (DED) in the United States from a societal and a payer's perspective. A decision analytic model was developed to estimate the annual cost for managing a cohort of patients with dry eye with differing severity of symptoms and treatment. The direct costs included ocular lubricants, cyclosporine, punctal plugs, physician visits, and nutritional supplements. The indirect costs were measured as the productivity loss because of absenteeism and presenteeism. The model was populated with data that were obtained from surveys that were completed by dry eye sufferers who were recruited from online databases. Sensitivity analyses were employed to evaluate the impact of changes in parameters on the estimation of costs. All costs were converted to 2008 US dollars. Survey data were collected from 2171 respondents with DED. Our analysis indicated that the average annual cost of managing a patient with dry eye at $783 (variation, $757-$809) from the payers' perspective. When adjusted to the prevalence of DED nationwide, the overall burden of DED for the US healthcare system would be $3.84 billion. From a societal perspective, the average cost of managing DED was estimated to be $11,302 per patient and $55.4 billion to the US society overall. DED poses a substantial economic burden on the payer and on the society. These findings may provide valuable information for health plans or employers regarding budget estimation.

Lone ranger decision making versus consensus decision making: Descriptive analysis

OpenAIRE

Maite Sara Mashego

2015-01-01

Consensus decision making, concerns group members make decisions together with the requirement of reaching a consensus that is all members abiding by the decision outcome. Lone ranging worked for sometime in a autocratic environment. Researchers are now pointing to consensus decision-making in organizations bringing dividend to many organizations. This article used a descriptive analysis to compare the goodness of consensus decision making and making lone ranging decision management. This art...

The Pashtun behavior economy an analysis of decision making in tribal society

OpenAIRE

Holton, Jeremy W.

2011-01-01

Approved for public release; distribution is unlimited. Little scholarship exists regarding the ways members of conflict societies think about the economic decisions they face, and what information they value as relevant to those decisions. The literature of the emerging field of behavior economics suggest that in uncertain environments, considerable weight may be given to identity and culture factors to make decisions that will affect personal safety, income prospects and self-fulfillment...

The different modes of hydro-economic analysis (Invited)

Science.gov (United States)

Harou, J. J.; Binions, O.; Erfani, T.

2013-12-01

In the face of growing water demands, climate change and spatial and temporal water access variability, accurately assessing the economic impacts of proposed water resource management changes is useful. The objective of this project funded by UK Water Industry Research was to present and demonstrate a framework for identifying and using the ';value of water' to enable water utilities and their regulators to make better decisions. A hydro-economic model can help evaluate water management options in terms of their hydrological and economic impact at different locations throughout a catchment over time. In this talk we discuss three modes in which hydro-economic models can be implemented: evaluative, behavioral and prescriptive. In evaluation mode economic water demand and benefit functions are used to post-process water resource management model results to assess the economic impacts (over space and time) of a policy under consideration. In behavioral hydro-economic models users are represented as agents and the economics is used to help predict their actions. In prescriptive mode optimization is used to find the most economically efficient management actions such as allocation patterns or source selection. These three types of hydro-economic analysis are demonstrated on a UK watershed (Great River Ouse) that includes 97 different water abstractors from amongst the public water supply, agriculture, industry and energy plant cooling sectors. The following issues under dry and normal historical conditions were investigated: Supply/demand investment planning, societal cost of environmental flows, water market prices, and scarcity-sensitive charges for water rights. The talk discusses which hydro-economic modeling mode is used to study each of these issues and why; example results are shown and discussed. The topic of how hydro-economic models can be built and deployed effectively is covered along with how existing water utility operational and planning tools can be

Chemical storage of wind energy by renewable methanol production: Feasibility analysis using a multi-criteria decision matrix

International Nuclear Information System (INIS)

Matzen, Michael; Alhajji, Mahdi; Demirel, Yaşar

2015-01-01

This study is for the technoeconomic analysis of an integral facility consisting of wind energy-based electrolytic hydrogen production, bioethanol-based carbon dioxide capture and compression, and direct methanol synthesis. ASPEN Plus was used to simulate the facility producing 97.01 mt (metric tons) methanol/day using 138.37 mt CO_2/day and 18.56 mt H_2/day. A discounted cash flow diagram for the integral facility is used for the economic analysis at various hydrogen production costs and methanol selling prices. The feasibility analysis is based on a multi-criteria decision matrix consisting of economic and sustainability indicators comparing renewable and non-renewable methanol productions. The overall energy efficiency for the renewable methanol is around 58%. Fixation of carbon reduces the CO_2 equivalent emission by around −1.05 CO_2e/kg methanol. The electrolytic hydrogen production cost is the largest contributor to the economics of the integral facility. The feasibility analysis based on multi-criteria shows that renewable methanol production may be feasible. - Highlights: • We simulate renewable methanol production from wind-based hydrogen and CO_2_. • Methanol production can fix 1.05 kg CO_2/kg methanol with an energy efficiency of 58%. • Economic and sustainability metrics are estimated for the integral facility. • We introduce a decision matrix with both economic and sustainability indicators. • Renewable methanol may be feasible versus conventional fossil fuel-based methanol.

Trustworthiness and Negative Affect Predict Economic Decision-Making.

Science.gov (United States)

Nguyen, Christopher M; Koenigs, Michael; Yamada, Torricia H; Teo, Shu Hao; Cavanaugh, Joseph E; Tranel, Daniel; Denburg, Natalie L

2011-09-01

The Ultimatum Game (UG) is a widely used and well-studied laboratory model of economic decision-making. Here, we studied 129 healthy adults and compared demographic (i.e., age, gender, education), cognitive (i.e., intelligence, attention/working memory, speed, language, visuospatial, memory, executive functions), and personality (i.e., "Big Five", positive affect, negative affect) variables between those with a "rational" versus an "irrational" response pattern on the UG. Our data indicated that participants with "rational" UG performance (accepting any offer, no matter the fairness) endorsed higher levels of trust, or the belief in the sincerity and good intentions of others, while participants with "irrational" UG performance (rejecting unfair offers) endorsed higher levels of negative affect, such as anger and contempt. These personality variables were the only ones that differentiated the two response patterns-demographic and cognitive factors did not differ between rational and irrational players. The results indicate that the examination of personality and affect is crucial to our understanding of the individual differences that underlie decision-making.

Methods for Health Economic Evaluation of Vaccines and Immunization Decision Frameworks : A Consensus Framework from a European Vaccine Economics Community

NARCIS (Netherlands)

Ultsch, Bernhard; Damm, Oliver; Beutels, Philippe; Bilcke, Joke; Brueggenjuergen, Bernd; Gerber-Grote, Andreas; Greiner, Wolfgang; Hanquet, Germaine; Hutubessy, Raymond; Jit, Mark; Knol, Mirjam; von Kries, Ruediger; Kuhlmann, Alexander; Levy-Bruhl, Daniel; Perleth, Matthias; Postma, Maarten; Salo, Heini; Siebert, Uwe; Wasem, Jurgen; Wichmann, Ole

Incremental cost-effectiveness and cost-utility analyses [health economic evaluations (HEEs)] of vaccines are routinely considered in decision making on immunization in various industrialized countries. While guidelines advocating more standardization of such HEEs (mainly for curative drugs) exist,

Issues in the economic evaluation of influenza vaccination by injection of healthy working adults in the US: a review and decision analysis of ten published studies.

Science.gov (United States)

Hogan, Thomas J

2012-05-01

The objective was to review recent economic evaluations of influenza vaccination by injection in the US, assess their evidence, and conclude on their collective findings. The literature was searched for economic evaluations of influenza vaccination injection in healthy working adults in the US published since 1995. Ten evaluations described in nine papers were identified. These were synopsized and their results evaluated, the basic structure of all evaluations was ascertained, and sensitivity of outcomes to changes in parameter values were explored using a decision model. Areas to improve economic evaluations were noted. Eight of nine evaluations with credible economic outcomes were favourable to vaccination, representing a statistically significant result compared with a proportion of 50% that would be expected if vaccination and no vaccination were economically equivalent. Evaluations shared a basic structure, but differed considerably with respect to cost components, assumptions, methods, and parameter estimates. Sensitivity analysis indicated that changes in parameter values within the feasible range, individually or simultaneously, could reverse economic outcomes. Given stated misgivings, the methods of estimating influenza reduction ascribed to vaccination must be researched to confirm that they produce accurate and reliable estimates. Research is also needed to improve estimates of the costs per case of influenza illness and the costs of vaccination. Based on their assumptions, the reviewed papers collectively appear to support the economic benefits of influenza vaccination of healthy adults. Yet the underlying assumptions, methods and parameter estimates themselves warrant further research to confirm they are accurate, reliable and appropriate to economic evaluation purposes.

Economic Analysis in the System of Financial Planning of Forestry Enterprises

Directory of Open Access Journals (Sweden)

Ievdokymov Viktor V.

2017-12-01

Full Text Available The aim of the article is to develop organizational and methodological provisions of economic analysis of forestry enterprises’ financial plans as a result of financial planning. The importance of financial planning as a basis for developing managerial decisions regarding the financial potential is substantiated. The characteristic of the development stages and the importance of financial potential in countries of the world is given. The stages of forecasting as the basis of enterprises’ financial plans are considered. The composition of the subsystems, methods and functions of financial planning highlighted in the scientific literature is investigated. The place of economic analysis in financial planning and in the system of financial planning of an enterprise’s economic activity is determined. There identified the directions of information disclosure in a financial plan: formation of financial results, budget settlements, cash flow, capital investments, ratio analysis, financial status, breakdown of individual items. The prospect for further research is to determine the order of applying the analytical procedures for each of these directions of economic analysis to justify the application of the analytical procedures for assessing financial potential on the basis of financial plans of forestry enterprises. This will allow to create information space for managing the financial potential of a forestry enterprise to achieve its tactical and strategic goals.

A method for analysis of nuclear power plant operators' decision making in simulated disturbance situations

International Nuclear Information System (INIS)

1995-01-01

An analysis method has been developed for analysis of nuclear power plant operators' decision making in simulated disturbance situations. The aim of the analysis is to investigate operators' orientation which is expected to manifest itself as collective strategies in utilization of resources of decision making. Resources analyzed here are different information sources and, in addition, collaborative resources like communication and participation. The cognitive approach on the basis of the method considers decision making as collective construction of common interpretation of available information. Utilization of information is evaluated with respect to operative context. This is made with help of conceptualization of the disturbance situation from the decision making point of view and by construction of operative reference for activity. The latter means conceptualization of the situation from the safety point of view and also consideration of other boundary constraints of decision making, i.e. economical and technical aspects. The analysis method is intended to be used in routine simulator training in nuclear power plants. By virtue of its contextual and dynamical approach it makes the developing nature of activity visible. Cumulation and distribution of knowledge of decision making as developing activity, controlled by orientation and boundary constraints of process control, is expected to improve operational culture of a plant organization. (author). 2 refs, 1 fig

Environmental Decision Analysis: Meeting the Challenges of Making Good Decisions at CALFED

Directory of Open Access Journals (Sweden)

Claire D Tomkins

2006-09-01

Full Text Available We present a methodology to support decision making at CALFED based on the principles of decision analysis, an analytical approach to decision making designed to handle complex decisions involving both uncertainty and multiple dimensions of value. The impetus for such an approach is a recognized need to enhance communication between scientists and management and between program elements within CALFED. In addition, the environmental decision analysis framework supports both the explicit representation of uncertainty in the decision problem and communication about risk, important elements of most environmental management decisions. The decision analysis cycle consists of four phases: 1 formulate, 2 evaluate, 3 appraise, and 4 decide. In phase one, we identify the objectives and also the alternatives, or possible actions. To facilitate inter-comparison between proposed actions, we recommend formulation of a set of common metrics for CALFED. In our pilot study, we introduced common metrics for salinity, winter-run Chinook salmon survival, and habitat health. The second phase focuses on quantifying possible impacts on the set of metrics, drawing on existing data, model runs, and expert opinions. For the evaluation phase, we employ tools such as decision trees to assess the system-wide impacts of a given action. In the final phase, tools such as expected cost-benefit analysis, value contribution diagrams, and 3-D tradeoff plots aid communication between various stakeholders, scientists, and managers. While decision analysis provides a spectrum of decision support tools, we emphasize that it does not dictate a solution but rather enhances communication about tradeoffs associated with different actions.

Advancing Alternative Analysis: Integration of Decision Science.

Science.gov (United States)

Malloy, Timothy F; Zaunbrecher, Virginia M; Batteate, Christina M; Blake, Ann; Carroll, William F; Corbett, Charles J; Hansen, Steffen Foss; Lempert, Robert J; Linkov, Igor; McFadden, Roger; Moran, Kelly D; Olivetti, Elsa; Ostrom, Nancy K; Romero, Michelle; Schoenung, Julie M; Seager, Thomas P; Sinsheimer, Peter; Thayer, Kristina A

2017-06-13

Decision analysis-a systematic approach to solving complex problems-offers tools and frameworks to support decision making that are increasingly being applied to environmental challenges. Alternatives analysis is a method used in regulation and product design to identify, compare, and evaluate the safety and viability of potential substitutes for hazardous chemicals. We assessed whether decision science may assist the alternatives analysis decision maker in comparing alternatives across a range of metrics. A workshop was convened that included representatives from government, academia, business, and civil society and included experts in toxicology, decision science, alternatives assessment, engineering, and law and policy. Participants were divided into two groups and were prompted with targeted questions. Throughout the workshop, the groups periodically came together in plenary sessions to reflect on other groups' findings. We concluded that the further incorporation of decision science into alternatives analysis would advance the ability of companies and regulators to select alternatives to harmful ingredients and would also advance the science of decision analysis. We advance four recommendations: a ) engaging the systematic development and evaluation of decision approaches and tools; b ) using case studies to advance the integration of decision analysis into alternatives analysis; c ) supporting transdisciplinary research; and d ) supporting education and outreach efforts. https://doi.org/10.1289/EHP483.

[Rational drug use: an economic approach to decision making].

Science.gov (United States)

Mota, Daniel Marques; da Silva, Marcelo Gurgel Carlos; Sudo, Elisa Cazue; Ortún, Vicente

2008-04-01

The present article approaches rational drug use (RDU) from the economical point of view. The implementation of RDU implies in costs and involves acquisition of knowledge and behavioral changes of several agents. The difficulties in implementing RDU may be due to shortage problems, information asymmetry, lack of information, uncertain clinical decisions, externalities, time-price, incentives for drug prescribers and dispensers, drug prescriber preferences and marginal utility. Health authorities, among other agencies, must therefore regularize, rationalize and control drug use to minimize inefficiency in pharmaceutical care and to prevent exposing the population to unnecessary health risks.

Cost-effectiveness analysis: what it really means for transfusion medicine decision making.

Science.gov (United States)

Custer, Brian; Hoch, Jeffrey S

2009-01-01

Some have suggested that "blood is different," and the role for cost-effectiveness is thus circumscribed. In this article, the authors start by reviewing key concepts in health economics and economic analysis methods. Examples are drawn from published blood safety studies. After explaining the underlying reasoning behind cost-effectiveness analysis, the authors point out how economic thinking is evident in some aspects of transfusion medicine. Some cost-effectiveness study results for blood safety are discussed to provide context, followed by consideration of prominent decisions that have been made in transfusion medicine field. In the last section, the authors conjecture as to why in some cases cost-effectiveness analysis appears to have greater impact than in others, noting the terrible price that is paid in mortality and morbidity when cost-effectiveness analysis is ignored. In this context, the implications of opportunity cost are discussed, and it is noted that opportunity cost should not be viewed as benefits forgone by concentrating on one aspect of blood safety and instead should be viewed as our societal willingness to misallocate resources to achieve less health for the same cost.

Take a stand on your decisions, or take a sit: posture does not affect risk preferences in an economic task.

Science.gov (United States)

O'Brien, Megan K; Ahmed, Alaa A

2014-01-01

Physiological and emotional states can affect our decision-making processes, even when these states are seemingly insignificant to the decision at hand. We examined whether posture and postural threat affect decisions in a non-related economic domain. Healthy young adults made a series of choices between economic lotteries in various conditions, including changes in body posture (sitting vs. standing) and changes in elevation (ground level vs. atop a 0.8-meter-high platform). We compared three metrics between conditions to assess changes in risk-sensitivity: frequency of risky choices, and parameter fits of both utility and probability weighting parameters using cumulative prospect theory. We also measured skin conductance level to evaluate physiological response to the postural threat. Our results demonstrate that body posture does not significantly affect decision making. Secondly, despite increased skin conductance level, economic risk-sensitivity was unaffected by increased threat. Our findings indicate that economic choices are fairly robust to the physiological and emotional changes that result from posture or postural threat.

An analysis of decision making strategies of Kocaeli region football referees

Directory of Open Access Journals (Sweden)

Selvi Sabit

2017-01-01

Full Text Available In this study, in a football competition, which is one of the most interesting sports encounters today, the state of the decision-making strategies of referees, who play an important role in terms of final scores, is investigated. In line with this aim, efforts have been made to determine the decision-making strategies of Kocaeli football referees. Whether the decision-making strategies determined have changed according to variables such as gender, age, marital status, educational status, economic income, work done outside of refereeing, professional experience and refereeing years. For this purpose, “Decision Strategies Scale and Personal Information Form” developed by Bacanlı and Kuzgun [1], have been applied to a total of 117 football referees, 11 female and 106 male active football referees in Kocaeli. The results obtained from the scale applications were evaluated in the SPSS 21.00 statistical package program. As a result of the analyzes made; Subscales of decision-making strategies of referees are not significant in terms of gender, marital status, education, work experience, work done outside refereering, refereeing years; while it is not meaningful in terms of unstable, logical and dependent decision making sub-scales when compared to the economic level, it has been seen that only internal tepic decision making increases significantly when economic level is lower.

Substance misuse prevention and economic analysis: challenges and opportunities regarding international utility.

Science.gov (United States)

Guyll, Max; Spoth, Richard; Cornish, Marilyn A

2012-01-01

Economic analyses of substance misuse prevention assess the intervention cost necessary to achieve a particular outcome, and thereby provide an additional dimension for evaluating prevention programming. This article reviews several types of economic analysis, considers how they can be applied to substance misuse prevention, and discusses challenges to enhancing their international relevance, particularly their usefulness for informing policy decisions. Important first steps taken to address these challenges are presented, including the disease burden concept and the development of generalized cost-effectiveness, advances that facilitate international policy discussions by providing a common framework for evaluating health care needs and program effects.

Plutonium-238 Decision Analysis

International Nuclear Information System (INIS)

Brown, Mike; Lechel, David J.; Leigh, C.D.

1999-01-01

Five transuranic (TRU) waste sites in the Department of Energy (DOE) complex, collectively, have more than 2,100 cubic meters of Plutonium-238 (Pu-238) TRU waste that exceed the wattage restrictions of the Transuranic Package Transporter-II (TRUPACT-11). The Waste Isolation Pilot Plant (WIPP) is being developed by the DOE as a repository for TRU waste. With the Waste Isolation Pilot Plant (WIPP) opening in 1999, these sites are faced with a need to develop waste management practices that will enable the transportation of Pu-238 TRU waste to WIPP for disposal. This paper describes a decision analysis that provided a logical framework for addressing the Pu-238 TRU waste issue. The insights that can be gained by performing a formalized decision analysis are multifold. First and foremost, the very process. of formulating a decision tree forces the decision maker into structured, logical thinking where alternatives can be evaluated one against the other using a uniform set of criteria. In the process of developing the decision tree for transportation of Pu-238 TRU waste, several alternatives were eliminated and the logical order for decision making was discovered. Moreover, the key areas of uncertainty for proposed alternatives were identified and quantified. The decision analysis showed that the DOE can employ a combination approach where they will (1) use headspace gas analyses to show that a fraction of the Pu-238 TRU waste drums are no longer generating hydrogen gas and can be shipped to WIPP ''as-is'', (2) use drums and bags with advanced filter systems to repackage Pu-238 TRU waste drums that are still generating hydrogen, and (3) add hydrogen getter materials to the inner containment vessel of the TRUPACT-11to relieve the build-up of hydrogen gas during transportation of the Pu-238 TRU waste drums

Applied decision analysis and risk evaluation

International Nuclear Information System (INIS)

Ferse, W.; Kruber, S.

1995-01-01

During 1994 the workgroup 'Applied Decision Analysis and Risk Evaluation; continued the work on the knowledge based decision support system XUMA-GEFA for the evaluation of the hazard potential of contaminated sites. Additionally a new research direction was started which aims at the support of a later stage of the treatment of contaminated sites: The clean-up decision. For the support of decisions arising at this stage, the methods of decision analysis will be used. Computational aids for evaluation and decision support were implemented and a case study at a waste disposal site in Saxony which turns out to be a danger for the surrounding groundwater ressource was initiated. (orig.)

Decision-making analysis for allergen immunotherapy versus nasal steroids in the treatment of nasal steroid-responsive allergic rhinitis.

Science.gov (United States)

Kennedy, Joshua L; Robinson, Derek; Christophel, Jared; Borish, Larry; Payne, Spencer

2014-01-01

The purpose of the study was to determine the age at which initiation of specific subcutaneous immunotherapy (SCIT) becomes more cost-effective than continued lifetime intranasal steroid (NS) therapy in the treatment of allergic rhinitis, with the use of a decision analysis model. A Markov decision analysis model was created for this study. Economic analyses were performed to identify "break-even" points in the treatment of allergic rhinitis with the use of SCIT and NS. Efficacy rates for therapy and cost data were collected from the published literature. Models in which there was only incomplete improvement while receiving SCIT were also evaluated for economic break-even points. The primary perspective of the study was societal. Multiple break-even point curves were obtained corresponding to various clinical scenarios. For patients with seasonal allergic rhinitis requiring NS (i.e., fluticasone) 6 months per year, the age at which initiation of SCIT provides long-term direct cost advantage is less than 41 years. For patients with perennial rhinitis symptoms requiring year-round NS, the cut-off age for SCIT cost-effectiveness increases to 60 years. Hypothetical subjects who require continued NS treatment (50% reduction of previous dosage) while receiving SCIT also display break-even points, whereby it is economically advantageous to consider allergy referral and SCIT, dependent on the cost of the NS prescribed. The age at which SCIT provides economic advantages over NS in the treatment of allergic rhinitis depends on multiple clinical factors. Decision analysis models can assist the physician in accounting for these factors and customize patient counseling with regard to treatment options.

Using whole disease modeling to inform resource allocation decisions: economic evaluation of a clinical guideline for colorectal cancer using a single model.

Science.gov (United States)

Tappenden, Paul; Chilcott, Jim; Brennan, Alan; Squires, Hazel; Glynne-Jones, Rob; Tappenden, Janine

2013-06-01

To assess the feasibility and value of simulating whole disease and treatment pathways within a single model to provide a common economic basis for informing resource allocation decisions. A patient-level simulation model was developed with the intention of being capable of evaluating multiple topics within National Institute for Health and Clinical Excellence's colorectal cancer clinical guideline. The model simulates disease and treatment pathways from preclinical disease through to detection, diagnosis, adjuvant/neoadjuvant treatments, follow-up, curative/palliative treatments for metastases, supportive care, and eventual death. The model parameters were informed by meta-analyses, randomized trials, observational studies, health utility studies, audit data, costing sources, and expert opinion. Unobservable natural history parameters were calibrated against external data using Bayesian Markov chain Monte Carlo methods. Economic analysis was undertaken using conventional cost-utility decision rules within each guideline topic and constrained maximization rules across multiple topics. Under usual processes for guideline development, piecewise economic modeling would have been used to evaluate between one and three topics. The Whole Disease Model was capable of evaluating 11 of 15 guideline topics, ranging from alternative diagnostic technologies through to treatments for metastatic disease. The constrained maximization analysis identified a configuration of colorectal services that is expected to maximize quality-adjusted life-year gains without exceeding current expenditure levels. This study indicates that Whole Disease Model development is feasible and can allow for the economic analysis of most interventions across a disease service within a consistent conceptual and mathematical infrastructure. This disease-level modeling approach may be of particular value in providing an economic basis to support other clinical guidelines. Copyright © 2013 International

Take a stand on your decisions, or take a sit: posture does not affect risk preferences in an economic task

OpenAIRE

O’Brien, Megan K.; Ahmed, Alaa A.

2014-01-01

Physiological and emotional states can affect our decision-making processes, even when these states are seemingly insignificant to the decision at hand. We examined whether posture and postural threat affect decisions in a non-related economic domain. Healthy young adults made a series of choices between economic lotteries in various conditions, including changes in body posture (sitting vs. standing) and changes in elevation (ground level vs. atop a 0.8-meter-high platform). We compared thre...

Integrated Approach To The Analysis Of The Quality Of Socio-Economic Regional Development Governance

Directory of Open Access Journals (Sweden)

Roman Michailovich Kachalov

2014-12-01

Full Text Available Prospects of the methods of the analysis and improvement of quality of governance the socio-economic systems application, based conceptual provisions of the system theory of economics, multilevel stratification of the economic space and the operational economical risk management theory are considered. For mesoeconomics, the types of system resources of the economy are defined. Also, it is analyses the influence on the quality of governance socio-economic region development the disparity of different types of system economical resources. Potential possibilities of the improvement of quality of governance due to thinner stratification of economical space and improvement the interaction parameters of the main actors of regional economic space are revealed. Leaning on the operational theory of risk management, ways of justification of administrative, strategic decisions by identification of the relevant economic risk factors and on the basis of received information development the program of anti-risk measures are offered. The methodical solutions promoting successful introduction of considered tools in practice of regional government are proposed.

Information Presentation in Decision and Risk Analysis: Answered, Partly Answered, and Unanswered Questions.

Science.gov (United States)

Keller, L Robin; Wang, Yitong

2017-06-01

For the last 30 years, researchers in risk analysis, decision analysis, and economics have consistently proven that decisionmakers employ different processes for evaluating and combining anticipated and actual losses, gains, delays, and surprises. Although rational models generally prescribe a consistent response, people's heuristic processes will sometimes lead them to be inconsistent in the way they respond to information presented in theoretically equivalent ways. We point out several promising future research directions by listing and detailing a series of answered, partly answered, and unanswered questions. © 2016 Society for Risk Analysis.

Moving beyond the cost-loss ratio: economic assessment of streamflow forecasts for a risk-averse decision maker

Science.gov (United States)

Matte, Simon; Boucher, Marie-Amélie; Boucher, Vincent; Fortier Filion, Thomas-Charles

2017-06-01

A large effort has been made over the past 10 years to promote the operational use of probabilistic or ensemble streamflow forecasts. Numerous studies have shown that ensemble forecasts are of higher quality than deterministic ones. Many studies also conclude that decisions based on ensemble rather than deterministic forecasts lead to better decisions in the context of flood mitigation. Hence, it is believed that ensemble forecasts possess a greater economic and social value for both decision makers and the general population. However, the vast majority of, if not all, existing hydro-economic studies rely on a cost-loss ratio framework that assumes a risk-neutral decision maker. To overcome this important flaw, this study borrows from economics and evaluates the economic value of early warning flood systems using the well-known Constant Absolute Risk Aversion (CARA) utility function, which explicitly accounts for the level of risk aversion of the decision maker. This new framework allows for the full exploitation of the information related to a forecasts' uncertainty, making it especially suited for the economic assessment of ensemble or probabilistic forecasts. Rather than comparing deterministic and ensemble forecasts, this study focuses on comparing different types of ensemble forecasts. There are multiple ways of assessing and representing forecast uncertainty. Consequently, there exist many different means of building an ensemble forecasting system for future streamflow. One such possibility is to dress deterministic forecasts using the statistics of past error forecasts. Such dressing methods are popular among operational agencies because of their simplicity and intuitiveness. Another approach is the use of ensemble meteorological forecasts for precipitation and temperature, which are then provided as inputs to one or many hydrological model(s). In this study, three concurrent ensemble streamflow forecasting systems are compared: simple statistically dressed

An Overview of Value, Perspective, and Decision Context-A Health Economics Approach: An ISPOR Special Task Force Report [2].

Science.gov (United States)

Garrison, Louis P; Pauly, Mark V; Willke, Richard J; Neumann, Peter J

2018-02-01

The second section of our Special Task Force builds on the discussion of value and perspective in the previous article of the report by 1) defining a health economics approach to the concept of value in health care systems; 2) discussing the relationship of value to perspective and decision context, that is, how recently proposed value frameworks vary by the types of decisions being made and by the stakeholders involved; 3) describing the patient perspective on value because the patient is a key stakeholder, but one also wearing the hat of a health insurance purchaser; and 4) discussing how value is relevant in the market-based US system of mixed private and public insurance, and differs from its use in single-payer systems. The five recent value frameworks that motivated this report vary in the types of decisions they intend to inform, ranging from coverage, access, and pricing decisions to those defining appropriate clinical pathways and to supporting provider-clinician shared decision making. Each of these value frameworks must be evaluated in its own decision context for its own objectives. Existing guidelines for cost-effectiveness analysis emphasize the importance of clearly specifying the perspective from which the analysis is undertaken. Relevant perspectives may include, among others, 1) the health plan enrollee, 2) the patient, 3) the health plan manager, 4) the provider, 5) the technology manufacturer, 6) the specialty society, 7) government regulators, or 8) society as a whole. A valid and informative cost-effectiveness analysis could be conducted from the perspective of any of these stakeholders, depending on the decision context. Copyright © 2018 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

Multicriteria decision analysis: Overview and implications for environmental decision making

Science.gov (United States)

Hermans, Caroline M.; Erickson, Jon D.; Erickson, Jon D.; Messner, Frank; Ring, Irene

2007-01-01

Environmental decision making involving multiple stakeholders can benefit from the use of a formal process to structure stakeholder interactions, leading to more successful outcomes than traditional discursive decision processes. There are many tools available to handle complex decision making. Here we illustrate the use of a multicriteria decision analysis (MCDA) outranking tool (PROMETHEE) to facilitate decision making at the watershed scale, involving multiple stakeholders, multiple criteria, and multiple objectives. We compare various MCDA methods and their theoretical underpinnings, examining methods that most realistically model complex decision problems in ways that are understandable and transparent to stakeholders.

Cost-effectiveness study of nitrate therapy using a decision analysis methodology.

Science.gov (United States)

Larrat, E P

1994-04-01

The cost-assessment technology of decision analysis was applied to isosorbide dinitrate (ISDN), the standard therapy for angina; isosorbide mononitrate (ISMO), approved mid-1992; and nitroglycerin patches to measure the effect of economics on clinical practice and administrative choices. The evaluation was conducted to illustrate the utility of this method for decision makers in various sectors of the health care system, including physicians, pharmacy benefit administrators, formulary committees, and manufacturers. Findings indicate that despite a higher unit cost for ISMO, total anticipated treatment costs with this new long-acting nitrate are lower than those associated with ISDN (28%) and nitroglycerin patch (16%) therapy in patients with stable angina, and ISMO requires less dosing titration and is associated with fewer tolerance effects.

Take a stand on your decisions, or take a sit: posture does not affect risk preferences in an economic task

Directory of Open Access Journals (Sweden)

Megan K. O’Brien

2014-07-01

Full Text Available Physiological and emotional states can affect our decision-making processes, even when these states are seemingly insignificant to the decision at hand. We examined whether posture and postural threat affect decisions in a non-related economic domain. Healthy young adults made a series of choices between economic lotteries in various conditions, including changes in body posture (sitting vs. standing and changes in elevation (ground level vs. atop a 0.8-meter-high platform. We compared three metrics between conditions to assess changes in risk-sensitivity: frequency of risky choices, and parameter fits of both utility and probability weighting parameters using cumulative prospect theory. We also measured skin conductance level to evaluate physiological response to the postural threat. Our results demonstrate that body posture does not significantly affect decision making. Secondly, despite increased skin conductance level, economic risk-sensitivity was unaffected by increased threat. Our findings indicate that economic choices are fairly robust to the physiological and emotional changes that result from posture or postural threat.

Advancing Alternative Analysis: Integration of Decision Science

DEFF Research Database (Denmark)

Malloy, Timothy F; Zaunbrecher, Virginia M; Batteate, Christina

2016-01-01

Decision analysis-a systematic approach to solving complex problems-offers tools and frameworks to support decision making that are increasingly being applied to environmental challenges. Alternatives analysis is a method used in regulation and product design to identify, compare, and evaluate......, and civil society and included experts in toxicology, decision science, alternatives assessment, engineering, and law and policy. Participants were divided into two groups and prompted with targeted questions. Throughout the workshop, the groups periodically came together in plenary sessions to reflect......) engaging the systematic development and evaluation of decision approaches and tools; (2) using case studies to advance the integration of decision analysis into alternatives analysis; (3) supporting transdisciplinary research; and (4) supporting education and outreach efforts....

Oil field decision analysis based on technical-economic indicators; Analise de decisao baseada em indicadores tecnico-economicos para um campo petrolifero

Energy Technology Data Exchange (ETDEWEB)

Ravagnani, Ana Teresa Gaspar; Munoz Mazo, Eduin; Schiozer, Denis [Universidade Estadual de Campinas (UNICAMP), SP (Brazil). Dept. de Engenharia de Petroleo. Lab. de Simulacao de Fluxo em Meios Porosos (UNISIM)

2008-07-01

This work presents a case study consisting of a synthetic offshore field in deep water and 28 deg API oil representing a gas solution model with water injection without gas cap. Several alternatives of strategies are proposed, regarding different configurations and number of wells, besides different limits of injection and production rates, as well as, completion layers. The objective is to show that different strategies can be obtained according to the indicator chosen by the decision maker. Even when the Net Present Value (NPV) is a very used indicator in the investment analysis, with the utilization of other technical-economical indicators, other investment alternatives different from those proposed when just VPL is utilized, can become feasible. Additionally, other aspects are analyzed, such as the possibility of changes in the production capacity with other oil prices levels. It is also proposed the production strategy optimization in this work, changing the time of production and the injection/production rate limits. (author)

Economic analysis

Energy Technology Data Exchange (ETDEWEB)

None

1980-06-01

The Energy Policy and Conservation Act (EPCA) mandated that minimum energy efficiency standards be established for classes of refrigerators and refrigerator-freezers, freezers, clothes dryers, water heaters, room air conditioners, home heating equipment, kitchen ranges and ovens, central air conditioners, and furnaces. EPCA requires that standards be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. Following the introductory chapter, Chapter Two describes the methodology used in the economic analysis and its relationship to legislative criteria for consumer product efficiency assessment; details how the CPES Value Model systematically compared and evaluated the economic impacts of regulation on the consumer, manufacturer and Nation. Chapter Three briefly displays the results of the analysis and lists the proposed performance standards by product class. Chapter Four describes the reasons for developing a baseline forecast, characterizes the baseline scenario from which regulatory impacts were calculated and summarizes the primary models, data sources and assumptions used in the baseline formulations. Chapter Five summarizes the methodology used to calculate regulatory impacts; describes the impacts of energy performance standards relative to the baseline discussed in Chapter Four. Also discussed are regional standards and other program alternatives to performance standards. Chapter Six describes the procedure for balancing consumer, manufacturer, and national impacts to select standard levels. Details of models and data bases used in the analysis are included in Appendices A through K.

Decision, Transaction, Law and Contract

DEFF Research Database (Denmark)

Koch, Carsten Allan

Copy from ”Preface to Post Doctoral Dissertation” ”Decision, transaction, law and contract” The period since 1970 has witnessed an explosion in contributions to what is now often referred to as the new institutional economics. One of the most influential (but also most atypical) of these approaches...... and Hierarchies” from 1975. Since then Williamson has, almost singlehandedly, erected an impressive research program which aims at explaining the institutional structures at the micro-level under which economic transactions take place. A number of different phenomena that were very hard to rationalize given...... further. Compared to earlier contributions, the mode of analysis employed differs in at least three ways. Firstly, the analysis is made in terms of the decision premises for entering a transactional relationship. This is in opposition to traditional transaction cost economics, where the transaction...

How uncertainty analysis of streamflow data can reduce costs and promote robust decisions in water management applications

Science.gov (United States)

McMillan, Hilary; Seibert, Jan; Petersen-Overleir, Asgeir; Lang, Michel; White, Paul; Snelder, Ton; Rutherford, Kit; Krueger, Tobias; Mason, Robert; Kiang, Julie

2017-07-01

Streamflow data are used for important environmental and economic decisions, such as specifying and regulating minimum flows, managing water supplies, and planning for flood hazards. Despite significant uncertainty in most flow data, the flow series for these applications are often communicated and used without uncertainty information. In this commentary, we argue that proper analysis of uncertainty in river flow data can reduce costs and promote robust conclusions in water management applications. We substantiate our argument by providing case studies from Norway and New Zealand where streamflow uncertainty analysis has uncovered economic costs in the hydropower industry, improved public acceptance of a controversial water management policy, and tested the accuracy of water quality trends. We discuss the need for practical uncertainty assessment tools that generate multiple flow series realizations rather than simple error bounds. Although examples of such tools are in development, considerable barriers for uncertainty analysis and communication still exist for practitioners, and future research must aim to provide easier access and usability of uncertainty estimates. We conclude that flow uncertainty analysis is critical for good water management decisions.

The potential for meta-analysis to support decision analysis in ecology.

Science.gov (United States)

Mengersen, Kerrie; MacNeil, M Aaron; Caley, M Julian

2015-06-01

Meta-analysis and decision analysis are underpinned by well-developed methods that are commonly applied to a variety of problems and disciplines. While these two fields have been closely linked in some disciplines such as medicine, comparatively little attention has been paid to the potential benefits of linking them in ecology, despite reasonable expectations that benefits would be derived from doing so. Meta-analysis combines information from multiple studies to provide more accurate parameter estimates and to reduce the uncertainty surrounding them. Decision analysis involves selecting among alternative choices using statistical information that helps to shed light on the uncertainties involved. By linking meta-analysis to decision analysis, improved decisions can be made, with quantification of the costs and benefits of alternate decisions supported by a greater density of information. Here, we briefly review concepts of both meta-analysis and decision analysis, illustrating the natural linkage between them and the benefits from explicitly linking one to the other. We discuss some examples in which this linkage has been exploited in the medical arena and how improvements in precision and reduction of structural uncertainty inherent in a meta-analysis can provide substantive improvements to decision analysis outcomes by reducing uncertainty in expected loss and maximising information from across studies. We then argue that these significant benefits could be translated to ecology, in particular to the problem of making optimal ecological decisions in the face of uncertainty. Copyright © 2013 John Wiley & Sons, Ltd.

OPTIMIZING USABILITY OF AN ECONOMIC DECISION SUPPORT TOOL: PROTOTYPE OF THE EQUIPT TOOL.

Science.gov (United States)

Cheung, Kei Long; Hiligsmann, Mickaël; Präger, Maximilian; Jones, Teresa; Józwiak-Hagymásy, Judit; Muñoz, Celia; Lester-George, Adam; Pokhrel, Subhash; López-Nicolás, Ángel; Trapero-Bertran, Marta; Evers, Silvia M A A; de Vries, Hein

2018-01-01

Economic decision-support tools can provide valuable information for tobacco control stakeholders, but their usability may impact the adoption of such tools. This study aims to illustrate a mixed-method usability evaluation of an economic decision-support tool for tobacco control, using the EQUIPT ROI tool prototype as a case study. A cross-sectional mixed methods design was used, including a heuristic evaluation, a thinking aloud approach, and a questionnaire testing and exploring the usability of the Return of Investment tool. A total of sixty-six users evaluated the tool (thinking aloud) and completed the questionnaire. For the heuristic evaluation, four experts evaluated the interface. In total twenty-one percent of the respondents perceived good usability. A total of 118 usability problems were identified, from which twenty-six problems were categorized as most severe, indicating high priority to fix them before implementation. Combining user-based and expert-based evaluation methods is recommended as these were shown to identify unique usability problems. The evaluation provides input to optimize usability of a decision-support tool, and may serve as a vantage point for other developers to conduct usability evaluations to refine similar tools before wide-scale implementation. Such studies could reduce implementation gaps by optimizing usability, enhancing in turn the research impact of such interventions.

ASPECTS OF FINANCIAL EQUILIBRIUM ANALYSIS AND ITS IMPLICATIONS IN MANAGEMENT DECISIONS

Directory of Open Access Journals (Sweden)

Daniela Cristina Solomon

2013-12-01

Full Text Available Considering the impact of risk factors in the economic environment, this study provides to all users of financial information a possible pattern for analyzing the financial equilibrium, designed to clarify the importance of dynamic analysis of indicators characterizing the financial equilibrium of an enterprise, expressed on absolute values, especially for managers in decision-making on future work, aimed at achieving pre-established strategic and tactical objectives. Practice has shown that the management cannot be based on intuition and routine but on a scientific analysis, on a thorough knowledge of the existing situation, as well as on the identification of vulnerabilities and opportunities for development. In order to promote a rational policy concerning business growth and achieving economic and financial satisfactory results, the company’s management grants a special importance to the financial diagnosis. The support of financial analysis is the balance sheet that allows developing financial diagnosis on the financial equilibrium conditions and creditworthiness, objectives that allow the evaluation of the independence of the firm and its market value.

Reprocessing decision: a study in policymaking under uncertainty

International Nuclear Information System (INIS)

Heising, C.D.

1978-01-01

The U.S. reprocessing decision is examined in this thesis. Decision analysis is applied to develop a rational framework for the assessment of policy alternatives. Benefits and costs for each alternative are evaluated and compared in dollar terms to determine the optimal decision. A fuel cycle simulation model is constructed to assess the economic value of reprocessing light water reactor (LWR) spent fuel and recycling plutonium. In addition, a dynamic fuel substitution model is used to estimate the economic effects of the reprocessing decision's influence on the introduction date of the liquid metal fast breeder reactor (LMFBR). Risks estimated in dollar terms for comparison with the economic values include those related to health, the environment and safety, nuclear theft and sabotage, and nuclear proliferation

Economics of reusable facilities

International Nuclear Information System (INIS)

Antia, D.D.J.

1992-01-01

In this paper some of the different economic development strategies that can be used for reusable facilities in the UK, Norway, Netherlands and in some production sharing contracts are outlined. These strategies focus on an integrated decision analysis approach which considers development phasing, reservoir management, tax planning and where appropriate facility purchase, leasing, or sale and leaseback decisions

Medical decision making tools: Bayesian analysis and ROC analysis

International Nuclear Information System (INIS)

Lee, Byung Do

2006-01-01

During the diagnostic process of the various oral and maxillofacial lesions, we should consider the following: 'When should we order diagnostic tests? What tests should be ordered? How should we interpret the results clinically? And how should we use this frequently imperfect information to make optimal medical decision?' For the clinicians to make proper judgement, several decision making tools are suggested. This article discusses the concept of the diagnostic accuracy (sensitivity and specificity values) with several decision making tools such as decision matrix, ROC analysis and Bayesian analysis. The article also explain the introductory concept of ORAD program

Future Tense and Economic Decisions: Controlling for Cultural Evolution.

Science.gov (United States)

Roberts, Seán G; Winters, James; Chen, Keith

2015-01-01

A previous study by Chen demonstrates a correlation between languages that grammatically mark future events and their speakers' propensity to save, even after controlling for numerous economic and demographic factors. The implication is that languages which grammatically distinguish the present and the future may bias their speakers to distinguish them psychologically, leading to less future-oriented decision making. However, Chen's original analysis assumed languages are independent. This neglects the fact that languages are related, causing correlations to appear stronger than is warranted (Galton's problem). In this paper, we test the robustness of Chen's correlations to corrections for the geographic and historical relatedness of languages. While the question seems simple, the answer is complex. In general, the statistical correlation between the two variables is weaker when controlling for relatedness. When applying the strictest tests for relatedness, and when data is not aggregated across individuals, the correlation is not significant. However, the correlation did remain reasonably robust under a number of tests. We argue that any claims of synchronic patterns between cultural variables should be tested for spurious correlations, with the kinds of approaches used in this paper. However, experiments or case-studies would be more fruitful avenues for future research on this specific topic, rather than further large-scale cross-cultural correlational studies.

An empirical analysis of the corporate call decision

International Nuclear Information System (INIS)

Carlson, M.D.

1998-01-01

An economic study of the the behaviour of financial managers of utility companies was presented. The study examined whether or not an option pricing based model of the call decision does a better job of explaining callable preferred share prices and call decisions compared to other models. In this study, the Rust (1987) empirical technique was extended to include the use of information from preferred share prices in addition to the call decisions. Reasonable estimates were obtained from data of shares of the Pacific Gas and Electric Company (PGE) for the transaction costs associated with a call. It was concluded that the managers of the PGE clearly take into account the value of the option to delay the call when making their call decisions

Exposing ecological and economic costs of the research-implementation gap and compromises in decision making.

Science.gov (United States)

Kareksela, Santtu; Moilanen, Atte; Ristaniemi, Olli; Välivaara, Reima; Kotiaho, Janne S

2018-02-01

The frequently discussed gap between conservation science and practice is manifest in the gap between spatial conservation prioritization plans and their implementation. We analyzed the research-implementation gap of one zoning case by comparing results of a spatial prioritization analysis aimed at avoiding ecological impact of peat mining in a regional zoning process with the final zoning plan. We examined the relatively complex planning process to determine the gaps among research, zoning, and decision making. We quantified the ecological costs of the differing trade-offs between ecological and socioeconomic factors included in the different zoning suggestions by comparing the landscape-level loss of ecological features (species occurrences, habitat area, etc.) between the different solutions for spatial allocation of peat mining. We also discussed with the scientists and planners the reasons for differing zoning suggestions. The implemented plan differed from the scientists suggestion in that its focus was individual ecological features rather than all the ecological features for which there were data; planners and decision makers considered effects of peat mining on areas not included in the prioritization analysis; zoning was not truly seen as a resource-allocation process and not emphasized in general minimizing ecological losses while satisfying economic needs (peat-mining potential); and decision makers based their prioritization of sites on site-level information showing high ecological value and on single legislative factors instead of finding a cost-effective landscape-level solution. We believe that if the zoning and decision-making processes are very complex, then the usefulness of science-based prioritization tools is likely to be reduced. Nevertheless, we found that high-end tools were useful in clearly exposing trade-offs between conservation and resource utilization. © 2017 Society for Conservation Biology.

Risk patterns and correlated brain activities. Multidimensional statistical analysis of FMRI data in economic decision making study.

Science.gov (United States)

van Bömmel, Alena; Song, Song; Majer, Piotr; Mohr, Peter N C; Heekeren, Hauke R; Härdle, Wolfgang K

2014-07-01

Decision making usually involves uncertainty and risk. Understanding which parts of the human brain are activated during decisions under risk and which neural processes underly (risky) investment decisions are important goals in neuroeconomics. Here, we analyze functional magnetic resonance imaging (fMRI) data on 17 subjects who were exposed to an investment decision task from Mohr, Biele, Krugel, Li, and Heekeren (in NeuroImage 49, 2556-2563, 2010b). We obtain a time series of three-dimensional images of the blood-oxygen-level dependent (BOLD) fMRI signals. We apply a panel version of the dynamic semiparametric factor model (DSFM) presented in Park, Mammen, Wolfgang, and Borak (in Journal of the American Statistical Association 104(485), 284-298, 2009) and identify task-related activations in space and dynamics in time. With the panel DSFM (PDSFM) we can capture the dynamic behavior of the specific brain regions common for all subjects and represent the high-dimensional time-series data in easily interpretable low-dimensional dynamic factors without large loss of variability. Further, we classify the risk attitudes of all subjects based on the estimated low-dimensional time series. Our classification analysis successfully confirms the estimated risk attitudes derived directly from subjects' decision behavior.

Including adverse drug events in economic evaluations of anti-tumour necrosis factor-α drugs for adult rheumatoid arthritis: a systematic review of economic decision analytic models.

Science.gov (United States)

Heather, Eleanor M; Payne, Katherine; Harrison, Mark; Symmons, Deborah P M

2014-02-01

Anti-tumour necrosis factor-α drugs (anti-TNFs) have revolutionised the treatment of rheumatoid arthritis (RA). More effective than standard non-biological disease-modifying anti-rheumatic drugs (nbDMARDs), anti-TNFs are also substantially more expensive. Consequently, a number of model-based economic evaluations have been conducted to establish the relative cost-effectiveness of anti-TNFs. However, anti-TNFs are associated with an increased risk of adverse drug events (ADEs) such as serious infections relative to nbDMARDs. Such ADEs will likely impact on both the costs and consequences of anti-TNFs, for example, through hospitalisations and forced withdrawal from treatment. The aim of this review was to identify and critically appraise if, and how, ADEs have been incorporated into model-based cost-effectiveness analyses of anti-TNFs for adult patients with RA. A systematic literature review was performed. Electronic databases (Ovid MEDLINE; Ovid EMBASE; Web of Science; NHS Economic Evaluations Database) were searched for literature published between January 1990 and October 2013 using electronic search strategies. The reference lists of retrieved studies were also hand searched. In addition, the National Institute for Health and Care Excellence technology appraisals were searched to identify economic models used to inform UK healthcare decision making. Only full economic evaluations that had used an economic model to evaluate biological DMARDs (bDMARDs) (including anti-TNFs) for adult patients with RA and had incorporated the direct costs and/or consequences of ADEs were critically appraised. To be included, studies also had to be available as a full text in English. Data extracted included general study characteristics and information concerning the methods used to incorporate ADEs and any associated assumptions made. The extracted data were synthesised using a tabular and narrative format. A total of 43 model-based economic evaluations of bDMARDs for adult RA

Thermo-economic analysis of combined power plants with changing economic parameters

International Nuclear Information System (INIS)

Bidini, G.; Desideri, U.; Facchini, B.

1991-01-01

A method of thermo-economic analysis for the choice of optimal thermodynamic parameters of steam bottoming cycles in combined cycle power plants is presented. By keeping the thermodynamic aspects separated from the economic aspects, this method allows designers to easily perform a sensitivity analysis of the change in the economic parameters

Results of analysis of archive MSG data in the context of MCS prediction system development for economic decisions assistance - case studies

Science.gov (United States)

Szafranek, K.; Jakubiak, B.; Lech, R.; Tomczuk, M.

2012-04-01

PROZA (Operational decision-making based on atmospheric conditions) is the project co-financed by the European Union through the European Regional Development Fund. One of its tasks is to develop the operational forecast system, which is supposed to support different economies branches like forestry or fruit farming by reducing the risk of economic decisions with taking into consideration weather conditions. In the frame of this studies system of sudden convective phenomena (storms or tornados) prediction is going to be built. The main authors' purpose is to predict MCSs (Mezoscale Convective Systems) basing on MSG (Meteosat Second Generation) real-time data. Until now several tests were performed. The Meteosat satellite images in selected spectral channels collected for Central Europe Region for May and August 2010 were used to detect and track cloud systems related to MCSs. In proposed tracking method first the cloud objects are defined using the temperature threshold and next the selected cells are tracked using principle of overlapping position on consecutive images. The main benefit to use a temperature thresholding to define cells is its simplicity. During the tracking process the algorithm links the cells of the image at time t to the one of the following image at time t+dt that correspond to the same cloud system (Morel-Senesi algorithm). An automated detection and elimination of some instabilities presented in tracking algorithm was developed. The poster presents analysis of exemplary MCSs in the context of near real-time prediction system development.

An Evaluation on Factors Influencing Decision making for Malaysia Disaster Management: The Confirmatory Factor Analysis Approach

Science.gov (United States)

Zubir, S. N. A.; Thiruchelvam, S.; Mustapha, K. N. M.; Che Muda, Z.; Ghazali, A.; Hakimie, H.

2017-12-01

For the past few years, natural disaster has been the subject of debate in disaster management especially in flood disaster. Each year, natural disaster results in significant loss of life, destruction of homes and public infrastructure, and economic hardship. Hence, an effective and efficient flood disaster management would assure non-futile efforts for life saving. The aim of this article is to examine the relationship between approach, decision maker, influence factor, result, and ethic to decision making for flood disaster management in Malaysia. The key elements of decision making in the disaster management were studied based on the literature. Questionnaire surveys were administered among lead agencies at East Coast of Malaysia in the state of Kelantan and Pahang. A total of 307 valid responses had been obtained for further analysis. Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were carried out to analyse the measurement model involved in the study. The CFA for second-order reflective and first-order reflective measurement model indicates that approach, decision maker, influence factor, result, and ethic have a significant and direct effect on decision making during disaster. The results from this study showed that decision- making during disaster is an important element for disaster management to necessitate a successful collaborative decision making. The measurement model is accepted to proceed with further analysis known as Structural Equation Modeling (SEM) and can be assessed for the future research.

Economics of climate policy and collective decision making

International Nuclear Information System (INIS)

Buergenmeier, B.; Ferrier, C.; Ingold, K.; Perret, S.; Baranzini, A.; Germond-Duret, C.; Kypreos, S.; Wokaun, A.; Rafaj, P.

2006-01-01

This paper explores the reasons why economic instruments of climate change are reluctantly applied and stresses the need for interdisciplinary research linking economic theory and empirical testing to deliberative political procedures. It is divided in three parts. The first one recalls the main issues in implementing Cost-Benefit Analysis such as information problems, uncertainties, discounting the future and irreversibilities. The second part shows how these issues can be treated in integrated assessment and techno-economic models and presents a case study, which shows that (1) The chosen scenario tends to stabilize atmospheric CO2 concentration at around 550 ppm in the long run; (2) Exclusion of possibility to trade CO2 emission permits under a cap regime would increase the cost of emission abatement for OECD countries; and (3) Combining different flexibility instruments might lead to significant gains in the overall cost of climate policy. The third part presents results of a survey conducted among the main economic and environmental associations in Switzerland. The survey reveals conflicting views on economic instruments. It shows how the social acceptability of these instruments can be improved in taking explicitly into account these opposing views of special interest groups. Therefore, policy scenarios should be selected in combining techno-economic models with empirical studies about their political and normative context

Uncertainty and sensitivity analysis of flood risk management decisions based on stationary and nonstationary model choices

Directory of Open Access Journals (Sweden)

Rehan Balqis M.

2016-01-01

Full Text Available Current practice in flood frequency analysis assumes that the stochastic properties of extreme floods follow that of stationary conditions. As human intervention and anthropogenic climate change influences in hydrometeorological variables are becoming evident in some places, there have been suggestions that nonstationary statistics would be better to represent the stochastic properties of the extreme floods. The probabilistic estimation of non-stationary models, however, is surrounded with uncertainty related to scarcity of observations and modelling complexities hence the difficulty to project the future condition. In the face of uncertain future and the subjectivity of model choices, this study attempts to demonstrate the practical implications of applying a nonstationary model and compares it with a stationary model in flood risk assessment. A fully integrated framework to simulate decision makers’ behaviour in flood frequency analysis is thereby developed. The framework is applied to hypothetical flood risk management decisions and the outcomes are compared with those of known underlying future conditions. Uncertainty of the economic performance of the risk-based decisions is assessed through Monte Carlo simulations. Sensitivity of the results is also tested by varying the possible magnitude of future changes. The application provides quantitative and qualitative comparative results that satisfy a preliminary analysis of whether the nonstationary model complexity should be applied to improve the economic performance of decisions. Results obtained from the case study shows that the relative differences of competing models for all considered possible future changes are small, suggesting that stationary assumptions are preferred to a shift to nonstationary statistics for practical application of flood risk management. Nevertheless, nonstationary assumption should also be considered during a planning stage in addition to stationary assumption

Methods of international health technology assessment agencies for economic evaluations--a comparative analysis.

Science.gov (United States)

Mathes, Tim; Jacobs, Esther; Morfeld, Jana-Carina; Pieper, Dawid

2013-09-30

The number of Health Technology Assessment (HTA) agencies increases. One component of HTAs are economic aspects. To incorporate economic aspects commonly economic evaluations are performed. A convergence of recommendations for methods of health economic evaluations between international HTA agencies would facilitate the adaption of results to different settings and avoid unnecessary expense. A first step in this direction is a detailed analysis of existing similarities and differences in recommendations to identify potential for harmonization. The objective is to provide an overview and comparison of the methodological recommendations of international HTA agencies for economic evaluations. The webpages of 127 international HTA agencies were searched for guidelines containing recommendations on methods for the preparation of economic evaluations. Additionally, the HTA agencies were requested information on methods for economic evaluations. Recommendations of the included guidelines were extracted in standardized tables according to 13 methodological aspects. All process steps were performed independently by two reviewers. Finally 25 publications of 14 HTA agencies were included in the analysis. Methods for economic evaluations vary widely. The greatest accordance could be found for the type of analysis and comparator. Cost-utility-analyses or cost-effectiveness-analyses are recommended. The comparator should continuously be usual care. Again the greatest differences were shown in the recommendations on the measurement/sources of effects, discounting and in the analysis of sensitivity. The main difference regarding effects is the focus either on efficacy or effectiveness. Recommended discounting rates range from 1.5%-5% for effects and 3%-5% for costs whereby it is mostly recommended to use the same rate for costs and effects. With respect to the analysis of sensitivity the main difference is that oftentimes the probabilistic or deterministic approach is recommended

Robust Economic Control Decision Method of Uncertain System on Urban Domestic Water Supply.

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Li, Kebai; Ma, Tianyi; Wei, Guo

2018-03-31

As China quickly urbanizes, urban domestic water generally presents the circumstances of both rising tendency and seasonal cycle fluctuation. A robust economic control decision method for dynamic uncertain systems is proposed in this paper. It is developed based on the internal model principle and pole allocation method, and it is applied to an urban domestic water supply system with rising tendency and seasonal cycle fluctuation. To achieve this goal, first a multiplicative model is used to describe the urban domestic water demand. Then, a capital stock and a labor stock are selected as the state vector, and the investment and labor are designed as the control vector. Next, the compensator subsystem is devised in light of the internal model principle. Finally, by using the state feedback control strategy and pole allocation method, the multivariable robust economic control decision method is implemented. The implementation with this model can accomplish the urban domestic water supply control goal, with the robustness for the variation of parameters. The methodology presented in this study may be applied to the water management system in other parts of the world, provided all data used in this study are available. The robust control decision method in this paper is also applicable to deal with tracking control problems as well as stabilization control problems of other general dynamic uncertain systems.

Quantitative fibronectin to help decision-making in women with symptoms of preterm labour (QUIDS) part 1: Individual participant data meta-analysis and health economic analysis

Science.gov (United States)

Wotherspoon, Lisa M; Boyd, Kathleen A; Morris, Rachel K; Jackson, Lesley; Chandiramani, Manju; David, Anna L; Khalil, Asma; Shennan, Andrew; Hodgetts Morton, Victoria; Lavender, Tina; Khan, Khalid; Harper-Clarke, Susan; Mol, Ben W; Riley, Richard D; Norrie, John; Norman, Jane E

2018-01-01

Introduction The aim of the QUIDS study is to develop a decision support tool for the management of women with symptoms and signs of preterm labour, based on a validated prognostic model using quantitative fetal fibronectin (qfFN) concentration, in combination with clinical risk factors. Methods and analysis The study will evaluate the Rapid fFN 10Q System (Hologic, Marlborough, Massachusetts) which quantifies fFN in a vaginal swab. In part 1 of the study, we will develop and internally validate a prognostic model using an individual participant data (IPD) meta-analysis of existing studies containing women with symptoms of preterm labour alongside fFN measurements and pregnancy outcome. An economic analysis will be undertaken to assess potential cost-effectiveness of the qfFN prognostic model. The primary endpoint will be the ability of the prognostic model to rule out spontaneous preterm birth within 7 days. Six eligible studies were identified by systematic review of the literature and five agreed to provide their IPD (n=5 studies, 1783 women and 139 events of preterm delivery within 7 days of testing). Ethics and dissemination The study is funded by the National Institute of Healthcare Research Health Technology Assessment (HTA 14/32/01). It has been approved by the West of Scotland Research Ethics Committee (16/WS/0068). PROSPERO registration number CRD42015027590. Version Protocol version 2, date 1 November 2016. PMID:29627817

On the Nirex MADA [Multi-Attribute Decision Analysis]. Proof of evidence

International Nuclear Information System (INIS)

Stirling, A.

1996-01-01

Proof of Evidence is given by an expert witness on behalf of Greenpeace Ltd as part of their submission to a Planning Inquiry in 1995 hearing the application of UK Nirex Ltd for permission to construct an underground Rock Characterisation Facility (RCF) at a site near Sellafield. The RCF is part of an investigation by Nirex into a suitable site for the disposal of radioactive waste. The evidence concerns the use by Nirex of a technique known as Multi-Attribute Decision Analysis (MADA) in support of their decision to concentrate their studies on the Sellafield site. Potentially, MADA offers a highly effective methodology for making difficult political decisions involving a mixture of technical, social and economic considerations. Its proper use, however, relies on: drawing an explicit distinction between relatively technical ''performance scores'' and wholly subjective ''importance weightings''; a clearly expressed and agreed scope for the analysis; the inclusion of a wide range of perspectives; systematic and comprehensive sensitivity testing of the implications of varying data, assumptions and value judgements; optimising the choice of option under each perspective; presenting explicit data, assumptions, transparent methodologies and accessible procedures for critical evaluation and public peer review. It is concluded that Nirex's MADA seems to be seriously deficient in relation to many of these principles. (9 references). (UK)

Multi-criteria multi-stakeholder decision analysis using a fuzzy-stochastic approach for hydrosystem management

Science.gov (United States)

Subagadis, Y. H.; Schütze, N.; Grundmann, J.

2014-09-01

The conventional methods used to solve multi-criteria multi-stakeholder problems are less strongly formulated, as they normally incorporate only homogeneous information at a time and suggest aggregating objectives of different decision-makers avoiding water-society interactions. In this contribution, Multi-Criteria Group Decision Analysis (MCGDA) using a fuzzy-stochastic approach has been proposed to rank a set of alternatives in water management decisions incorporating heterogeneous information under uncertainty. The decision making framework takes hydrologically, environmentally, and socio-economically motivated conflicting objectives into consideration. The criteria related to the performance of the physical system are optimized using multi-criteria simulation-based optimization, and fuzzy linguistic quantifiers have been used to evaluate subjective criteria and to assess stakeholders' degree of optimism. The proposed methodology is applied to find effective and robust intervention strategies for the management of a coastal hydrosystem affected by saltwater intrusion due to excessive groundwater extraction for irrigated agriculture and municipal use. Preliminary results show that the MCGDA based on a fuzzy-stochastic approach gives useful support for robust decision-making and is sensitive to the decision makers' degree of optimism.

The management of an endodontically abscessed tooth: patient health state utility, decision-tree and economic analysis

Directory of Open Access Journals (Sweden)

Shepperd Sasha

2007-12-01

Full Text Available Abstract Background A frequent encounter in clinical practice is the middle-aged adult patient complaining of a toothache caused by the spread of a carious infection into the tooth's endodontic complex. Decisions about the range of treatment options (conventional crown with a post and core technique (CC, a single tooth implant (STI, a conventional dental bridge (CDB, and a partial removable denture (RPD have to balance the prognosis, utility and cost. Little is know about the utility patients attach to the different treatment options for an endontically abscessed mandibular molar and maxillary incisor. We measured patients' dental-health-state utilities and ranking preferences of the treatment options for these dental problems. Methods Forty school teachers ranked their preferences for conventional crown with a post and core technique, a single tooth implant, a conventional dental bridge, and a partial removable denture using a standard gamble and willingness to pay. Data previously reported on treatment prognosis and direct "out-of-pocket" costs were used in a decision-tree and economic analysis Results The Standard Gamble utilities for the restoration of a mandibular 1st molar with either the conventional crown (CC, single-tooth-implant (STI, conventional dental bridge (CDB or removable-partial-denture (RPD were 74.47 [± 6.91], 78.60 [± 5.19], 76.22 [± 5.78], 64.80 [± 8.1] respectively (p The standard gamble utilities for the restoration of a maxillary central incisor with a CC, STI, CDB and RPD were 88.50 [± 6.12], 90.68 [± 3.41], 89.78 [± 3.81] and 91.10 [± 3.57] respectively (p > 0.05. Their respective willingness-to-pay ($CDN were: 1,782.05 [± 361.42], 1,871.79 [± 349.44], 1,605.13 [± 348.10] and 1,351.28 [± 368.62]. A statistical difference was found between the utility of treating a maxillary central incisor and mandibular 1st-molar (p The expected-utility-value for a 5-year prosthetic survival was highest for the CDB and the

Multi-criteria decision analysis in environmental sciences: ten years of applications and trends.

Science.gov (United States)

Huang, Ivy B; Keisler, Jeffrey; Linkov, Igor

2011-09-01

Decision-making in environmental projects requires consideration of trade-offs between socio-political, environmental, and economic impacts and is often complicated by various stakeholder views. Multi-criteria decision analysis (MCDA) emerged as a formal methodology to face available technical information and stakeholder values to support decisions in many fields and can be especially valuable in environmental decision making. This study reviews environmental applications of MCDA. Over 300 papers published between 2000 and 2009 reporting MCDA applications in the environmental field were identified through a series of queries in the Web of Science database. The papers were classified by their environmental application area, decision or intervention type. In addition, the papers were also classified by the MCDA methods used in the analysis (analytic hierarchy process, multi-attribute utility theory, and outranking). The results suggest that there is a significant growth in environmental applications of MCDA over the last decade across all environmental application areas. Multiple MCDA tools have been successfully used for environmental applications. Even though the use of the specific methods and tools varies in different application areas and geographic regions, our review of a few papers where several methods were used in parallel with the same problem indicates that recommended course of action does not vary significantly with the method applied. Published by Elsevier B.V.

[Analysis of the characteristics of the older adults with depression using data mining decision tree analysis].

Science.gov (United States)

Park, Myonghwa; Choi, Sora; Shin, A Mi; Koo, Chul Hoi

2013-02-01

The purpose of this study was to develop a prediction model for the characteristics of older adults with depression using the decision tree method. A large dataset from the 2008 Korean Elderly Survey was used and data of 14,970 elderly people were analyzed. Target variable was depression and 53 input variables were general characteristics, family & social relationship, economic status, health status, health behavior, functional status, leisure & social activity, quality of life, and living environment. Data were analyzed by decision tree analysis, a data mining technique using SPSS Window 19.0 and Clementine 12.0 programs. The decision trees were classified into five different rules to define the characteristics of older adults with depression. Classification & Regression Tree (C&RT) showed the best prediction with an accuracy of 80.81% among data mining models. Factors in the rules were life satisfaction, nutritional status, daily activity difficulty due to pain, functional limitation for basic or instrumental daily activities, number of chronic diseases and daily activity difficulty due to disease. The different rules classified by the decision tree model in this study should contribute as baseline data for discovering informative knowledge and developing interventions tailored to these individual characteristics.

Decision Analysis and Its Application to the Frequency of Containment Integrated Leakage Rate Tests

International Nuclear Information System (INIS)

Apostolakis, George E.; Koser, John P.; Sato, Gaku

2004-01-01

For nuclear utilities to become competitive in a deregulated electricity market, costs must be reduced, safety must be maintained, and interested stakeholders must remain content with the decisions being made. One way to reduce costs is to reduce the frequency of preventive maintenance and testing. However, these changes must be weighed against their impact on safety and stakeholder relations. We present a methodology that allows the evaluation of decision options using a number of objectives that include safety, economics, and stakeholder relations. First, the candidate decision options are screened to make sure that they satisfy the relevant regulatory requirements. The remaining options are evaluated using multiattribute utility theory. The results of the formal analysis include a ranking of the options according to their desirability as well as the major reasons that explain this ranking. These results are submitted to a deliberative process in which the decision makers scrutinize the results to ensure that they are meaningful. During the deliberation, new decision options may be formulated based on the insights that the formal analysis provides, as happened in the case study of this paper. This case study deals with the reduction in frequency of the containment integrated leak rate test of a boiling water reactor

Methods of economic analysis applied to fusion research. Fifth annual report

International Nuclear Information System (INIS)

1981-01-01

In this and previous efforts, ECON has provided economic assessment of a fusion research program. This phase of study has focused on the future markets for fusion energy and the economics of fusion in those markets. These tasks were performed: (1) fusion market growth, (2) inflation vs. capital investment decisions, and (3) economics of cogeneration

Promising Approaches From Behavioral Economics to Improve Patient Lung Cancer Screening Decisions.

Science.gov (United States)

Barnes, Andrew J; Groskaufmanis, Lauren; Thomson, Norman B

2016-12-01

Lung cancer is a devastating disease, the deadliest form of cancer in the world and in the United States. As a consequence of CMS's determination to provide low-dose CT (LDCT) as a covered service for at-risk smokers, LDCT lung cancer screening is now a covered service for many at-risk patients that first requires counseling and shared clinical decision making, including discussions of the risks and benefits of LDCT screening. However, shared decision making fundamentally relies on the premise that with better information, patients will arrive at rational decisions that align with their preferences and values. Evidence from the field of behavioral economics offers many contrary viewpoints that take into account patient decision making biases and the role of the shared decision environment that can lead to flawed choices and that are particularly relevant to lung cancer screening and treatment. This article discusses some of the most relevant biases, and suggests incorporating such knowledge into screening and treatment guidelines and shared decision making best practices to increase the likelihood that such efforts will produce their desired objectives to improve survival and quality of life. Copyright © 2016 American College of Radiology. Published by Elsevier Inc. All rights reserved.

Use of technical and economic analysis for optimizing technology selection and remedial design for contaminated sites

International Nuclear Information System (INIS)

Hardisty, P.E.; Brown, A.

1996-01-01

The decision to remediate a contaminated site can be seen from the macroeconomic and microeconomic viewpoints. Macroeconomics can be used to plan and account for the overall cost of pollution as part of a firm's production, and thus make overall decisions on the real cost of pollution and the level of clean-up which may be called for. Valuation of damaged resources, option values and intrinsic worth is an important part of this process. Once the decision to remediate has been taken, the question becomes how best to remediate. Microeconomic analysis deals with providing efficient allocative decisions for reaching specified goals. it is safe to say that cost is one of the single most important factors in site clean-up decision making. A basic rule of remediation is often taken to be the maximization of contaminant mass removed per dollar spent. However, remediation may also be governed by other objectives and constraints. In some situations, minimization of time, rather than cost, could be the constraint. Or perhaps the objective could be to achieve a set level of clean-up for the lowest possible cost, even if a large program would result in unit-cost reductions. Evaluation of the economics of a clean-up project is directly linked to the objectives of the site owner, and the constraints within which the remediation is to be performed. Economic analysis of remedial options for containment of a 350,000 L hydrocarbon spill migrating through fractured rock into a river in Alberta, Canada, clear direction to the site owner

Economic analysis of emerald ash borer (Coleoptera: Buprestidae) management options.

Science.gov (United States)

Vannatta, A R; Hauer, R H; Schuettpelz, N M

2012-02-01

Emerald ash borer, Agrilus planipennis (Fairmaire) (Coleoptera: Buprestidae), plays a significant role in the health and extent of management of native North American ash species in urban forests. An economic analysis of management options was performed to aid decision makers in preparing for likely future infestations. Separate ash tree population valuations were derived from the i-Tree Streets program and the Council of Tree and Landscape Appraisers (CTLA) methodology. A relative economic analysis was used to compare a control option (do-nothing approach, only removing ash trees as they die) to three distinct management options: 1) preemptive removal of all ash trees over a 5 yr period, 2) preemptive removal of all ash trees and replacement with comparable nonash trees, or 3) treating the entire population of ash trees with insecticides to minimize mortality. For each valuation and management option, an annual analysis was performed for both the remaining ash tree population and those lost to emerald ash borer. Retention of ash trees using insecticide treatments typically retained greater urban forest value, followed by doing nothing (control), which was better than preemptive removal and replacement. Preemptive removal without tree replacement, which was the least expensive management option, also provided the lowest net urban forest value over the 20-yr simulation. A "no emerald ash borer" scenario was modeled to further serve as a benchmark for each management option and provide a level of economic justification for regulatory programs aimed at slowing the movement of emerald ash borer.

Economic aspects and models for building codes

DEFF Research Database (Denmark)

Bonke, Jens; Pedersen, Dan Ove; Johnsen, Kjeld

It is the purpose of this bulletin to present an economic model for estimating the consequence of new or changed building codes. The object is to allow comparative analysis in order to improve the basis for decisions in this field. The model is applied in a case study.......It is the purpose of this bulletin to present an economic model for estimating the consequence of new or changed building codes. The object is to allow comparative analysis in order to improve the basis for decisions in this field. The model is applied in a case study....

Control system upgrades support better plant economics

International Nuclear Information System (INIS)

De Grosbois, J.; Hepburn, A.; Storey, H.; Basso, R.; Kumar, V.

2002-01-01

This paper (second in the series, see [1]) provides insight on how nuclear plants can achieve better efficiencies and reduced operations and maintenance (O and M) costs through focused control system upgrades. An understanding of this relationship is necessary to properly assess the economics of plant refurbishment decisions. Traditional economic feasibility assessment methods such as benefit cost analysis (BCA), internal rate of return (IRR), benefit cost ratios (B/C), or payback analysis are often performed without full consideration of project alternatives, quantified benefits, and life cycle costing. Consideration must be given to not only capital cost and project risk, but also to the potential economic benefits of new technology and added functionality offered by plant upgrades. Recent experience shows that if upgrades are focused on priority objectives, and are effectively implemented, they can deliver significant payback over the life of the plant, sometimes orders of magnitude higher than their initial capital cost. The following discussion explores some of the key issues and rationale behind upgrade decisions and their impact on improved plant efficiency and reduced O and M costs. A subsequent paper will explain how the justification for these improvements can be captured in an economic analysis and feasibility study to support strategic decision-making in a plant refurbishment context. (author)

Economic Analysis on Shrunk-on Type Low Pressure Turbine Retrofit

International Nuclear Information System (INIS)

Lee, Seong-hoon; Roh, Myung-sub

2015-01-01

Stress corrosion cracking (SCC) of low pressure turbines (LPTs) is one of the most critical aging issues. In particular, LPTs with shrunk-on type rotors are more susceptible to SCC as cracks can be initiated in the disk keyway regions as well as in bucket attachment areas. Many utilities have been replacing old LPTs with the advanced designs which improve not only SCC reliability but thermal performance. However LPT retrofit still requires a substantial capital investment, and the plant owners should perform an economic analysis prior to making a decision on the timing of LPT retrofit. In Korea, seventy (70) LPTs are being operated at twenty-four (24) nuclear power plants (NPPs). Eight stations (Kori-1-4, Hanbit-1-2, and Hanul-1-2) have already replaced their LPTs. Considering the operation age of remaining LPTs in Korea, the next targets for retrofit will be the twelve (12) shrunk-on type LPTs at four plants (Hanbit-3-4, Hanul-3-4). In this study, we will review the inspection status of shrunk-on type LPTs in Korea, and perform economic analysis on LPT retrofit based on four alternative cases. Now that operation age of twelve (12) shrunk-on type PWR LPTs in Korea has reached about twenty (20) years, a program needs to be considered to manage retrofit projects as a of long term maintenance. In this paper, the inspection status of those LPTs was reviewed along with an economic assessment on LPT retrofit based on the four alternative scenarios. To date, NDE results for the shrunk-on type LPT fleet in Korea have been quite positive (i.e. indications have been below the threshold size). However, the current NDE intervals should be maintained to closely monitor those indications which can develop into SCC cracks in the future. In addition, retrofit of LPTs should be considered to minimize the probability of future failure. According to the simplified economic analysis here, revenue can be maximized for the case LPT retrofit implementation after thirty (30) years of

Economic Analysis on Shrunk-on Type Low Pressure Turbine Retrofit

Energy Technology Data Exchange (ETDEWEB)

Lee, Seong-hoon; Roh, Myung-sub [KEPCO International Nuclear Graduate School, Ulsan (Korea, Republic of)

2015-10-15

Stress corrosion cracking (SCC) of low pressure turbines (LPTs) is one of the most critical aging issues. In particular, LPTs with shrunk-on type rotors are more susceptible to SCC as cracks can be initiated in the disk keyway regions as well as in bucket attachment areas. Many utilities have been replacing old LPTs with the advanced designs which improve not only SCC reliability but thermal performance. However LPT retrofit still requires a substantial capital investment, and the plant owners should perform an economic analysis prior to making a decision on the timing of LPT retrofit. In Korea, seventy (70) LPTs are being operated at twenty-four (24) nuclear power plants (NPPs). Eight stations (Kori-1-4, Hanbit-1-2, and Hanul-1-2) have already replaced their LPTs. Considering the operation age of remaining LPTs in Korea, the next targets for retrofit will be the twelve (12) shrunk-on type LPTs at four plants (Hanbit-3-4, Hanul-3-4). In this study, we will review the inspection status of shrunk-on type LPTs in Korea, and perform economic analysis on LPT retrofit based on four alternative cases. Now that operation age of twelve (12) shrunk-on type PWR LPTs in Korea has reached about twenty (20) years, a program needs to be considered to manage retrofit projects as a of long term maintenance. In this paper, the inspection status of those LPTs was reviewed along with an economic assessment on LPT retrofit based on the four alternative scenarios. To date, NDE results for the shrunk-on type LPT fleet in Korea have been quite positive (i.e. indications have been below the threshold size). However, the current NDE intervals should be maintained to closely monitor those indications which can develop into SCC cracks in the future. In addition, retrofit of LPTs should be considered to minimize the probability of future failure. According to the simplified economic analysis here, revenue can be maximized for the case LPT retrofit implementation after thirty (30) years of

A decision analysis approach for risk management of near-earth objects

Science.gov (United States)

Lee, Robert C.; Jones, Thomas D.; Chapman, Clark R.

2014-10-01

timing of informing the public. The analytical aspects of decision analysis center on estimation of the expected value (i.e. utility) of different alternatives. The expected value of an alternative is a function of the probability-weighted consequences, estimated using Bayesian calculations in a decision tree or influence diagram model. The result is a set of expected-value estimates for all alternatives evaluated that enables a ranking; the higher the expected value, the more preferred the alternative. A common way to include resource limitations is by framing the decision analysis in the context of economics (e.g., cost-effectiveness analysis). An important aspect of decision analysis in the NEO risk management case is the ability, known as sensitivity analysis, to examine the effect of parameter uncertainty upon decisions. The simplest way to evaluate uncertainty associated with the information used in a decision analysis is to adjust the input values one at a time (or simultaneously) to examine how the results change. Monte Carlo simulations can be used to adjust the inputs over ranges or distributions of values; statistical means then are used to determine the most influential variables. These techniques yield a measure known as the expected value of imperfect information. This value is highly informative, because it allows the decision-maker with imperfect information to evaluate the impact of using experiments, tests, or data collection (e.g. Earth-based observations, space-based remote sensing, etc.) to refine judgments; and indeed to estimate how much should be spent to reduce uncertainty.

Voluntary Participation in Community Economic Development in Canada: An Empirical Analysis

Directory of Open Access Journals (Sweden)

Laura Lamb

2011-01-01

Full Text Available This article is an empirical analysis of an individual's decision to participate in community economic development (CED initiatives in Canada. The objective of the analysis is to better understand how individuals make decisions to volunteer time toward CED initiatives and to determine whether the determinants of participation in CED are unique when compared to those of participation in volunteer activities in general. The dataset employed is Statistics Canada's 2004 Canada Survey of Giving, Volunteering and Participating (CSGVP. To date, there has been no prior econometric analysis of the decision to participate in community economic development initiatives in Canada. Results suggest a role for both public policymakers and practitioners in influencing participation in CED. / Cet article constitue une analyse empirique du processus de prise de décision chez les individus en ce qui a trait à la participation aux initiatives canadiennes de développement économique communautaire (DÉC. Le but de l'analyse est de mieux comprendre la façon dont les individus prennent la décision de consacrer du temps au bénévolat dans les initiatives de DÉC. Elle sert aussi à trancher la question de savoir si les facteurs de participation aux initiatives de développement économique communautaire sont uniques ou communs à la participation à des activités bénévoles en général. Les données employées dans le cadre de cette analyse sont puisées de l'Enquête canadienne sur le don, le bénévolat et la participation effectuée par Statistique Canada en 2004. À ce jour, aucune analyse économétrique n'a été menée sur la décision de participer aux initiatives canadiennes de DÉC. Les résultats suggèrent que les responsables de l'élaboration des politiques ainsi que les praticiens influencent tous deux la participation aux initiatives de DÉC.

Economic impacts study

Energy Technology Data Exchange (ETDEWEB)

Brunsen, W.; Worley, W.; Frost, E.

1988-09-30

This is a progress report on the first phase of a project to measure the economic impacts of a rapidly changing U.S. target base. The purpose of the first phase is to designate and test the macroeconomic impact analysis model. Criteria were established for a decision-support model. Additional criteria were defined for an interactive macroeconomic impact analysis model. After a review of several models, the Economic Impact Forecast System model of the U.S. Army Construction Research Laboratory was selected as the appropriate input-output tool that can address local and regional economic analysis. The model was applied to five test cases to demonstrate its utility and define possible revisions to meet project criteria. A plan for EIFS access was defined at three levels. Objectives and tasks for scenario refinement are proposed.

Economic policy uncertainty, credit risks and banks lending decisions: Evidence from Chinese commercial banks

Institute of Scientific and Technical Information of China (English)

Qinwei Chi; Wenjing Li

2017-01-01

Using data for Chinese commercial banks from 2000 to 2014, this paper examines the effects of economic policy uncertainty(EPU) on banks’ credit risks and lending decisions. The results reveal significantly positive connections among EPU and non-performing loan ratios, loan concentrations and the normal loan migration rate. This indicates that EPU increases banks’ credit risks and negatively influences loan size, especially for joint-equity banks. Given the increasing credit risks generated by EPU, banks can improve operational performance by reducing loan sizes. Further research indicates that the effects of EPU on banks’ credit risks and lending decisions are moderated by the marketization level, with financial depth moderating the effect on banks’ credit risks and strengthening it on lending decisions.

The Relation Between Socio-Economic Characteristics and the Innovation Decision Making of Digital Television Broadcasts

Directory of Open Access Journals (Sweden)

Haryati Haryati

2013-11-01

Full Text Available Migration from analog to digital technology, requires a lot of preparation, both from the side of the device, the regulation of the broadcasting industry, and the society. This study refers to the Diffusion of Innovations theory (the theory of Diffusion of Innovation (Rogers, 1986 that try to explain how an innovation (technology can be accepted into the community, through a process of decision. The aim of the research is to find out the relationship between socio-economic characteristics of the innovation and decision-making broadcast of digital television. This research uses a quantitative approach with descriptive methods aim to find out the relationship between socio-economic characteristics of the innovation and decision-making broadcast of digital television. The research was carried out in seven counties/cities in West Java Province and Banten Province. The selection of samples is carried out by Multistage Random Cluster Sampling. The number of samples as many as 813 people assigned by Proportional Sampling techniques, with the character category of respondents age 15 years until 64 years. Significance test results with the method at the rate of 5% Pearson pointed out that, the relationship between innovation decision-making variables with socio-economic characteristics on three aspects, namely, education, income, and spending is weak and insignificant, while on access to information, the value of relationships and significant. This suggests the necessity of strengthening the capacity of absorption of community efforts in the face of digital broadcast television, can be done by fixing the value of any existing components on the operational level. As a priority, is how the effort to improve the economy of society, especially in terms of education, income, and expenditure permonth.

Negative decision outcomes are more common among people with lower decision-making competence: An item-level analysis of the Decision Outcome Inventory (DOI

Directory of Open Access Journals (Sweden)

Andrew M Parker

2015-04-01

Full Text Available Most behavioral decision research takes place in carefully controlled laboratory settings, and examination of relationships between performance and specific real-world decision outcomes is rare. One prior study shows that people who perform better on hypothetical decision tasks, assessed using the Adult Decision-Making Competence (A-DMC measure, also tend to experience better real-world decision outcomes, as reported on the Decision Outcomes Inventory (DOI. The DOI score reflects avoidance of outcomes that could result from poor decisions, ranging from serious (e.g., bankruptcy to minor (e.g., blisters from sunburn. The present analyses go beyond the initial work, which focused on the overall DOI score, by analyzing the relationships between specific decision outcomes and A-DMC performance. Most outcomes are significantly more likely among people with lower A-DMC scores, even after taking into account two variables expected to produce worse real-world decision outcomes: younger age and lower socio-economic status. We discuss the usefulness of DOI as a measure of successful real-world decision making.

A mixed biomass-based energy supply chain for enhancing economic and environmental sustainability benefits: A multi-criteria decision making framework

International Nuclear Information System (INIS)

Mirkouei, Amin; Haapala, Karl R.; Sessions, John; Murthy, Ganti S.

2017-01-01

Highlights: •A mixed supply chain is developed to enhance sustainability benefits of bioenergy. •A decision-making framework is constructed to balance sustainability dimensions. •A stochastic optimization model is developed to explore the effects of uncertainty. •This study provides insights on bio-oil production processes and system structure. -- Abstract: Bioenergy sources have been introduced as a means to address challenges of conventional energy sources. The uncertainties of supply-side (upstream) externalities (e.g., collection and logistics) represent the key challenges in bioenergy supply chains and lead to reduce cross-cutting sustainability benefits. We propose a mixed biomass-based energy supply chain (consisting of mixed-mode bio-refineries and mixed-pathway transportation) and a multi-criteria decision making framework to address the upstream challenges. Our developed framework supports decisions influencing the economic and environmental dimensions of sustainability. Economic analysis employs a support vector machine technique, to predict the pattern of uncertainty parameters, and a stochastic optimization model, to incorporate uncertainties into the model. The stochastic model minimizes the total annual cost of the proposed mixed supply chain network by using a genetic algorithm. Environmental impact analysis employs life cycle assessment to evaluate the global warming potential of the cost-effective supply chain network. Our presented approach is capable of enhancing sustainability benefits of bioenergy industry infrastructure. A case study for the Pacific Northwest is used to demonstrate the application of the methodology and to verify the models. The results indicate that mixed supply chains can improve sustainability performance over traditional supply infrastructures by reducing costs (up to 24%) and environmental impacts (up to 5%).

Health economic evaluation: important principles and methodology.

Science.gov (United States)

Rudmik, Luke; Drummond, Michael

2013-06-01

To discuss health economic evaluation and improve the understanding of common methodology. This article discusses the methodology for the following types of economic evaluations: cost-minimization, cost-effectiveness, cost-utility, cost-benefit, and economic modeling. Topics include health-state utility measures, the quality-adjusted life year (QALY), uncertainty analysis, discounting, decision tree analysis, and Markov modeling. Economic evaluation is the comparative analysis of alternative courses of action in terms of both their costs and consequences. With increasing health care expenditure and limited resources, it is important for physicians to consider the economic impact of their interventions. Understanding common methodology involved in health economic evaluation will improve critical appraisal of the literature and optimize future economic evaluations. Copyright © 2012 The American Laryngological, Rhinological and Otological Society, Inc.

Decision Support For Digester Algae Integration For Improved Environmental And Economic Sustainability

Energy Technology Data Exchange (ETDEWEB)

2017-06-28

The Idaho National Laboratory (INL) has teamed with University of Idaho and Boise State University to make the use of ADs more attractive by implementing a two-stage AD and coupling additional processes to the system. The addition of a polyhydroxyalkanoate (PHA) reactor, algae cultivation system, and a biomass treatment system such as fast-pyrolysis or hydrothermal liquefaction (HTL) would further sequester carbon and nutrients, as well as add valuable products that can be sold or used on-site to mitigate costs. The Decision-support for Digester-Algae IntegRation for Improved Environmental and Economic Sustainability (DAIRIEES) technoeconomic model will play a key role in evaluating the effectiveness and viability of this system to achieve economic and environmental sustainability by the dairy industry.

The Development of the Guide to Economic Analysis and Research (GEAR) Online Resource for Low- and Middle-Income Countries' Health Economics Practitioners: A Commentary.

Science.gov (United States)

Adeagbo, Chiaki Urai; Rattanavipapong, Waranya; Guinness, Lorna; Teerawattananon, Yot

2018-05-01

Public health authorities around the world are increasingly using economic evaluation to set priorities and inform decision making in health policy, especially in the development of health benefit packages. Nevertheless, researchers in low- and middle-income countries (LMICs) encounter many barriers when conducting economic evaluations. In 2015, the Health Intervention and Technology Assessment Program identified key technical and context-specific challenges faced in conducting and using health economic evaluations in LMICs. On the basis of these research findings, the Guide to Economic Analysis and Research (GEAR) online resource (www.gear4health.com) was developed as a reliable aid to researchers in LMICs that would help overcome those challenges. Funded by the Thailand Research Fund and the Bill and Melinda Gates Foundation, GEAR is a free online resource that provides a visual aid tool for planning economic evaluation studies (GEAR mind maps), a repository of national and international economic evaluation guidelines (GEAR guideline comparison), and an active link to a network of volunteer international experts (GEAR: Ask an expert). GEAR will evolve over time to provide relevant, reliable, and up-to-date information through inputs from its users (e.g., periodic survey on methodological challenges) and experts (e.g., in responding to users' questions). The objective of this commentary was to give a brief description of the development and key features of this unique collective information hub aimed at facilitating high-quality research and empowering health care decision makers and stakeholders to use economic evaluation evidence. Copyright © 2017 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

How decision analysis can further nanoinformatics.

Science.gov (United States)

Bates, Matthew E; Larkin, Sabrina; Keisler, Jeffrey M; Linkov, Igor

2015-01-01

The increase in nanomaterial research has resulted in increased nanomaterial data. The next challenge is to meaningfully integrate and interpret these data for better and more efficient decisions. Due to the complex nature of nanomaterials, rapid changes in technology, and disunified testing and data publishing strategies, information regarding material properties is often illusive, uncertain, and/or of varying quality, which limits the ability of researchers and regulatory agencies to process and use the data. The vision of nanoinformatics is to address this problem by identifying the information necessary to support specific decisions (a top-down approach) and collecting and visualizing these relevant data (a bottom-up approach). Current nanoinformatics efforts, however, have yet to efficiently focus data acquisition efforts on the research most relevant for bridging specific nanomaterial data gaps. Collecting unnecessary data and visualizing irrelevant information are expensive activities that overwhelm decision makers. We propose that the decision analytic techniques of multicriteria decision analysis (MCDA), value of information (VOI), weight of evidence (WOE), and portfolio decision analysis (PDA) can bridge the gap from current data collection and visualization efforts to present information relevant to specific decision needs. Decision analytic and Bayesian models could be a natural extension of mechanistic and statistical models for nanoinformatics practitioners to master in solving complex nanotechnology challenges.

ECONOMIC INTELLIGENCE - THEORETICAL AND PRACTICAL ASPECTS

Directory of Open Access Journals (Sweden)

VIRGIL - ION POPOVICI

2014-12-01

Full Text Available Economic Intelligence (EI may be a solution in knowledge management as involves collecting, evaluating, processing, analysis and dissemination of economic data within organizations. The ultimate goal of economic intelligence (EI is to take advantage of this opportunity to develop and improve methods for identifying relevant information sources, analysis of information collected and manipulation, to give the user all the necessary decisions. Scope of the Economic Intelligence focused on information available outside the organization, covering wide areas from technology to market or legal issues. Economic Intelligence (EI is closely related to other approaches to information management, and knowledge management and business intelligence, excelling in the use of software tools.

Techno-Economic, Sustainability, and Market Analysis | Bioenergy | NREL

Science.gov (United States)

Techno-Economic, Sustainability, and Market Analysis Techno-Economic, Sustainability, and Market Analysis NREL conducts techno-economic analyses (TEAs) for algal biofuels, thermochemical conversion, and agitating the liquid as it flows around. Algal Biofuels Techno-Economic Analysis NREL's Algae Techno

How is an analysis of the enterprise economic environment done?

Directory of Open Access Journals (Sweden)

Carlos Parodi Trece

2015-09-01

Full Text Available The proper interpretation of the evolution of the economy is a useful tool to improve corporate decision-making. The aim of this paper is to explain, with examples applied to the current economic reality, how an analysis of the economic environment is made and how it serves for the corporate strategic planning. To do this, after the explanation of the overall conceptual framework; gross domestic product, inflation and external deficit as indicators, key in the "language" used by analysts are defined. These are economic indicators, related, that depend on domestic policy and exogenous shocks, defined as events that are out of the hands of economic policy designers, but that influence the three variables, such as the international financial crisis. Following it, the formalization through macroeconomic identities is made, in order to finally explain "how is the economy" through them; and the relationship between the internal to the external economic environment. Bringing the economy to business should be a priority in an increasingly integrated context, characterized by the fact that the positive and the negative of what happens in the world economy is transmitted through various channels, to companies located in different countries. Hence, companies should broaden their vision, as the economic environment does not only include what happens within the country, but the future of the world economy.

Risk-based decision analysis for groundwater operable units

International Nuclear Information System (INIS)

Chiaramonte, G.R.

1995-01-01

This document proposes a streamlined approach and methodology for performing risk assessment in support of interim remedial measure (IRM) decisions involving the remediation of contaminated groundwater on the Hanford Site. This methodology, referred to as ''risk-based decision analysis,'' also supports the specification of target cleanup volumes and provides a basis for design and operation of the groundwater remedies. The risk-based decision analysis can be completed within a short time frame and concisely documented. The risk-based decision analysis is more versatile than the qualitative risk assessment (QRA), because it not only supports the need for IRMs, but also provides criteria for defining the success of the IRMs and provides the risk-basis for decisions on final remedies. For these reasons, it is proposed that, for groundwater operable units, the risk-based decision analysis should replace the more elaborate, costly, and time-consuming QRA

Decision analysis with cumulative prospect theory.

Science.gov (United States)

Bayoumi, A M; Redelmeier, D A

2000-01-01

Individuals sometimes express preferences that do not follow expected utility theory. Cumulative prospect theory adjusts for some phenomena by using decision weights rather than probabilities when analyzing a decision tree. The authors examined how probability transformations from cumulative prospect theory might alter a decision analysis of a prophylactic therapy in AIDS, eliciting utilities from patients with HIV infection (n = 75) and calculating expected outcomes using an established Markov model. They next focused on transformations of three sets of probabilities: 1) the probabilities used in calculating standard-gamble utility scores; 2) the probabilities of being in discrete Markov states; 3) the probabilities of transitioning between Markov states. The same prophylaxis strategy yielded the highest quality-adjusted survival under all transformations. For the average patient, prophylaxis appeared relatively less advantageous when standard-gamble utilities were transformed. Prophylaxis appeared relatively more advantageous when state probabilities were transformed and relatively less advantageous when transition probabilities were transformed. Transforming standard-gamble and transition probabilities simultaneously decreased the gain from prophylaxis by almost half. Sensitivity analysis indicated that even near-linear probability weighting transformations could substantially alter quality-adjusted survival estimates. The magnitude of benefit estimated in a decision-analytic model can change significantly after using cumulative prospect theory. Incorporating cumulative prospect theory into decision analysis can provide a form of sensitivity analysis and may help describe when people deviate from expected utility theory.

Syntactical Analysis of Economics Textbooks.

Science.gov (United States)

Wilcox, George K.

An analysis of the syntax of economics textbooks was undertaken to (1) provide real-language examples of the difficult grammatical structures being taught in an advanced economics reading course, and (2) construct a factual database of the nature of economics textbooks. Five texts representative of those typically used in introductory economics…

Fuzzy logic approach to SWOT analysis for economics tasks and example of its computer realization

Directory of Open Access Journals (Sweden)

Vladimir CHERNOV

2016-07-01

Full Text Available The article discusses the widely used classic method of analysis, forecasting and decision-making in the various economic problems, called SWOT analysis. As known, it is a qualitative comparison of multicriteria degree of Strength, Weakness, Opportunity, Threat for different kinds of risks, forecasting the development in the markets, status and prospects of development of enterprises, regions and economic sectors, territorials etc. It can also be successfully applied to the evaluation and analysis of different project management tasks - investment, innovation, marketing, development, design and bring products to market and so on. However, in practical competitive market and economic conditions, there are various uncertainties, ambiguities, vagueness. Its making usage of SWOT analysis in the classical sense not enough reasonable and ineffective. In this case, the authors propose to use fuzzy logic approach and the theory of fuzzy sets for a more adequate representation and posttreatment assessments in the SWOT analysis. In particular, has been short showed the mathematical formulation of respective task and the main approaches to its solution. Also are given examples of suitable computer calculations in specialized software Fuzicalc for processing and operations with fuzzy input data. Finally, are presented considerations for interpretation of the results.

A hybrid life cycle and multi-criteria decision analysis approach for identifying sustainable development strategies of Beijing's taxi fleet

International Nuclear Information System (INIS)

Cai, Yanpeng; Applegate, Scott; Yue, Wencong; Cai, Jianying; Wang, Xuan; Liu, Gengyuan; Li, Chunhui

2017-01-01

To identify and evaluate sustainable strategies of taxi fleet in Beijing in terms of economic, policy, and environmental implications, a hybrid approach was developed through incorporating multi-criteria decision analysis (MCDA) methods within a general life-cycle analysis (LCA) framework. The approach can (a) help comprehensive evaluate environmental impacts of multiple types of vehicles, (b) facilitate analysis of environmental, economic and policy features of such vehicles, and (c) identify desirable taxi fleet development strategies for the city. The developed approach represented an improvement of the decision-making capability for taxi implementation based on multiple available technologies and their performance that can be specifically tailored to Beijing. The results demonstrated that the proposed approach could comprehensively reflect multiple implications of strategies for the taxi fleet in Beijing to reduce air pollution in the city. The results also indicated that the electric vehicle powered with the year 2020 electricity projections would be the ideal solution, outranking the other alternatives. The conventional vehicle ranked the lowest among the alternatives. The plug-in hybrid vehicle powered by 2020 electricity projects ranked the third, followed by the plug-in hybrid vehicle ranking the fourth, and the hybrid vehicle ranking the fifth. - Highlights: • An hybrid approach was proposed for evaluating sustainable strategies of Beijing's taxi fleet. • This approach was based on the combination of multi-criteria decision analysis methods and life-cycle assessment. • Environmental, economic and policy performances of multiple strategies were compared. • Detailed responses of taxi drivers and local residents were interviewed. • The electric vehicle would be the ideal solution for Beijing Taxi fleet.

Guidelines for economic analysis of pharmaceutical products: a draft document for Ontario and Canada.

Science.gov (United States)

Detsky, A S

1993-05-01

In Canada, provincial formulary review committees consider the effectiveness, safety, and cost of products when they derive advice for each Minister of Health. This article offers a draft set of guidelines for pharmaceutical manufacturers making submissions which include economic information, moving beyond a simple presentation of the unit price of the pharmaceutical product (e.g. price per day or course of therapy) and comparison to similar prices for alternative products. A full economic analysis compares all relevant costs and clinical outcomes of the new product with alternate therapeutic strategies for treating patients with a particular condition. The perspective of the decision maker must be clearly identified. The quality of the evidence supporting estimates of the variables incorporated in the analysis should be evaluated. Sensitivity analyses are used to assess the robustness of the qualitative conclusions. Reviewers will examine the answers to a set of 19 questions. Manufacturers can use these questions as a worksheet for preparation of an economic analysis to be incorporated in a submission. These guidelines are intended to be a starting point for further refinement, and discussion with health economists in industry and academia. Considerable flexibility will be used in reviewing documentation supporting economic analysis. Those preparing submissions should be encouraged to experiment with various approaches as part of the general development of this field and to engage provincial review committees in ongoing discussions.

Multi-criteria multi-stakeholder decision analysis using a fuzzy-stochastic approach for hydrosystem management

Directory of Open Access Journals (Sweden)

Y. H. Subagadis

2014-09-01

Full Text Available The conventional methods used to solve multi-criteria multi-stakeholder problems are less strongly formulated, as they normally incorporate only homogeneous information at a time and suggest aggregating objectives of different decision-makers avoiding water–society interactions. In this contribution, Multi-Criteria Group Decision Analysis (MCGDA using a fuzzy-stochastic approach has been proposed to rank a set of alternatives in water management decisions incorporating heterogeneous information under uncertainty. The decision making framework takes hydrologically, environmentally, and socio-economically motivated conflicting objectives into consideration. The criteria related to the performance of the physical system are optimized using multi-criteria simulation-based optimization, and fuzzy linguistic quantifiers have been used to evaluate subjective criteria and to assess stakeholders' degree of optimism. The proposed methodology is applied to find effective and robust intervention strategies for the management of a coastal hydrosystem affected by saltwater intrusion due to excessive groundwater extraction for irrigated agriculture and municipal use. Preliminary results show that the MCGDA based on a fuzzy-stochastic approach gives useful support for robust decision-making and is sensitive to the decision makers' degree of optimism.

Decision theory, the context for risk and reliability analysis

International Nuclear Information System (INIS)

Kaplan, S.

1985-01-01

According to this model of the decision process then, the optimum decision is that option having the largest expected utility. This is the fundamental model of a decision situation. It is necessary to remark that in order for the model to represent a real-life decision situation, it must include all the options present in that situation, including, for example, the option of not deciding--which is itself a decision, although usually not the optimum one. Similarly, it should include the option of delaying the decision while the authors gather further information. Both of these options have probabilities, outcomes, impacts, and utilities like any option and should be included explicitly in the decision diagram. The reason for doing a quantitative risk or reliability analysis is always that, somewhere underlying there is a decision to be made. The decision analysis therefore always forms the context for the risk or reliability analysis, and this context shapes the form and language of that analysis. Therefore, they give in this section a brief review of the well-known decision theory diagram

Structured decision making: Chapter 5

Science.gov (United States)

Runge, Michael C.; Grand, James B.; Mitchell, Michael S.; Krausman, Paul R.; Cain, James W. III

2013-01-01

Wildlife management is a decision-focused discipline. It needs to integrate traditional wildlife science and social science to identify actions that are most likely to achieve the array of desires society has surrounding wildlife populations. Decision science, a vast field with roots in economics, operations research, and psychology, offers a rich set of tools to help wildlife managers frame, decompose, analyze, and synthesize their decisions. The nature of wildlife management as a decision science has been recognized since the inception of the field, but formal methods of decision analysis have been underused. There is tremendous potential for wildlife management to grow further through the use of formal decision analysis. First, the wildlife science and human dimensions of wildlife disciplines can be readily integrated. Second, decisions can become more efficient. Third, decisions makers can communicate more clearly with stakeholders and the public. Fourth, good, intuitive wildlife managers, by explicitly examining how they make decisions, can translate their art into a science that is readily used by the next generation.

Caring Cooperators and Powerful Punishers: Differential Effects of Induced Care and Power Motivation on Different Types of Economic Decision Making.

Science.gov (United States)

Chierchia, G; Lesemann, F H Parianen; Snower, D; Vogel, M; Singer, T

2017-09-11

Standard economic theory postulates that decisions are driven by stable context-insensitive preferences, while motivation psychology suggests they are driven by distinct context-sensitive motives with distinct evolutionary goals and characteristic psycho-physiological and behavioral patterns. To link these fields and test how distinct motives could differentially predict different types of economic decisions, we experimentally induced participants with either a Care or a Power motive, before having them take part in a suite of classic game theoretical paradigms involving monetary exchange. We show that the Care induction alone raised scores on a latent factor of cooperation-related behaviors, relative to a control condition, while, relative to Care, Power raised scores on a punishment-related factor. These findings argue against context-insensitive stable preferences and theories of strong reciprocity and in favor of a motive-based approach to economic decision making: Care and Power motivation have a dissociable fingerprint in shaping either cooperative or punishment behaviors.

Analyzing the reprocessing decision: plutonium recycle and nuclear proliferation. Final report

International Nuclear Information System (INIS)

Heising, C.D.; Connolly, T.J.

1978-11-01

The United States decision to defer indefinitely the reprocessing of spent nuclear fuel is examined in this thesis. Bayesian decision analysis is applied to develop a rational framework for the assessment of alternatives. Benefits and costs for each alternative are evaluated and compared in dollar terms to determine the optimal decision. A fuel cycle simulation model is constructed to assess the economic value of reprocessing light water reactor (LWR) spent fuel and recycling plutonium. In addition, a dynamic fuel substitution model is used to estimate the economic effects of the reprocessing decision's influence on the introduction date of the liquid metal fast breeder reactor (LMFBR). The analysis of benefits and costs is extended to include the social costs due to technological risks, such as accident risk, nuclear theft and/or sabotage, and international nuclear proliferation. These social costs are expressed in dollar terms for comparison with the conventional economic values. Results of the analysis indicate that the domestic social costs are less than the economic benefits by more than three orders of magnitude, and that the permit option dominates those of delay or prohibit. An examination of proliferation risk indicates a factor of approximately 7 between cost-benefits. Thus, on the basis of this analysis, it appears that to permit reprocessing is optimal over delaying or prohibiting the technology

Using social network analysis to examine the decision-making process on new vaccine introduction in Nigeria.

Science.gov (United States)

Wonodi, C B; Privor-Dumm, L; Aina, M; Pate, A M; Reis, R; Gadhoke, P; Levine, O S

2012-05-01

The decision-making process to introduce new vaccines into national immunization programmes is often complex, involving many stakeholders who provide technical information, mobilize finance, implement programmes and garner political support. Stakeholders may have different levels of interest, knowledge and motivations to introduce new vaccines. Lack of consensus on the priority, public health value or feasibility of adding a new vaccine can delay policy decisions. Efforts to support country-level decision-making have largely focused on establishing global policies and equipping policy makers with the information to support decision-making on new vaccine introduction (NVI). Less attention has been given to understanding the interactions of policy actors and how the distribution of influence affects the policy process and decision-making. Social network analysis (SNA) is a social science technique concerned with explaining social phenomena using the structural and relational features of the network of actors involved. This approach can be used to identify how information is exchanged and who is included or excluded from the process. For this SNA of vaccine decision-making in Nigeria, we interviewed federal and state-level government officials, officers of bilateral and multilateral partner organizations, and other stakeholders such as health providers and the media. Using data culled from those interviews, we performed an SNA in order to map formal and informal relationships and the distribution of influence among vaccine decision-makers, as well as to explore linkages and pathways to stakeholders who can influence critical decisions in the policy process. Our findings indicate a relatively robust engagement of key stakeholders in Nigeria. We hypothesized that economic stakeholders and implementers would be important to ensure sustainable financing and strengthen programme implementation, but some economic and implementation stakeholders did not appear centrally on

Assessing the economic impact of paternal involvement: a comparison of the generalized linear model versus decision analysis trees.

Science.gov (United States)

Salihu, Hamisu M; Salemi, Jason L; Nash, Michelle C; Chandler, Kristen; Mbah, Alfred K; Alio, Amina P

2014-08-01

Lack of paternal involvement has been shown to be associated with adverse pregnancy outcomes, including infant morbidity and mortality, but the impact on health care costs is unknown. Various methodological approaches have been used in cost minimization and cost effectiveness analyses and it remains unclear how cost estimates vary according to the analytic strategy adopted. We illustrate a methodological comparison of decision analysis modeling and generalized linear modeling (GLM) techniques using a case study that assesses the cost-effectiveness of potential father involvement interventions. We conducted a 12-year retrospective cohort study using a statewide enhanced maternal-infant database that contains both clinical and nonclinical information. A missing name for the father on the infant's birth certificate was used as a proxy for lack of paternal involvement, the main exposure of this study. Using decision analysis modeling and GLM, we compared all infant inpatient hospitalization costs over the first year of life. Costs were calculated from hospital charges using department-level cost-to-charge ratios and were adjusted for inflation. In our cohort of 2,243,891 infants, 9.2% had a father uninvolved during pregnancy. Lack of paternal involvement was associated with higher rates of preterm birth, small-for-gestational age, and infant morbidity and mortality. Both analytic approaches estimate significantly higher per-infant costs for father uninvolved pregnancies (decision analysis model: $1,827, GLM: $1,139). This paper provides sufficient evidence that healthcare costs could be significantly reduced through enhanced father involvement during pregnancy, and buttresses the call for a national program to involve fathers in antenatal care.

Environmental sustainable decision making – The need and obstacles for integration of LCA into decision analysis

DEFF Research Database (Denmark)

Dong, Yan; Miraglia, Simona; Manzo, Stefano

2018-01-01

systems, revealing potential problem shifting between life cycle stages. Through the integration with traditional risk based decision analysis, LCA may thus facilitate a better informed decision process. In this study we explore how environmental impacts are taken into account in different fields......Decision analysis is often used to help decision makers choose among alternatives, based on the expected utility associated to each alternative as function of its consequences and potential impacts. Environmental impacts are not always among the prioritized concerns of traditional decision making...... of interest for decision makers to identify the need, potential and obstacles for integrating LCA into conventional approaches to decision problems. Three application areas are used as examples: transportation planning, flood management, and food production and consumption. The analysis of these cases shows...

Economics: An Analysis of Unintended Consequences. Volume 1: Introduction to Microeconomics.

Science.gov (United States)

Schenk, Robert E.

This curriculum guide introduces high school students to the basic principles of microeconomics. Chapter 1 provides a basic definition of economics, while chapter 2 introduces a number of important economic concepts and ideas and examines reasons for unintended or unexpected consequences of decision-making. Chapter 3 considers how individual…

Electricity decision-making: New techniques for calculating statewide economic impacts from new power supply and demand-side management programs

Science.gov (United States)

Tegen, Suzanne Isabel Helmholz

This dissertation introduces new techniques for calculating and comparing statewide economic impacts from new coal, natural gas and wind power plants, as well as from demand-side management programs. The impetus for this work was two-fold. First, reviews of current literature and projects revealed that there was no standard way to estimate statewide economic impacts from new supply- and demand-side electricity options. Second, decision-makers who were interviewed stated that they were overwhelmed with data in general, but also lacked enough specific information about economic development impacts to their states from electricity, to make informed choices. This dissertation includes chapters on electricity decision-making and on economic impacts from supply and demand. The supply chapter compares different electricity options in three states which vary in natural resource content: Arizona, Colorado and Michigan. To account for differing capacity factors, resources are compared on a per-megawatt-hour basis. The calculations of economic impacts from new supply include: materials and labor for construction, operations, maintenance, fuel extraction, fuel transport, as well as property tax, financing and landowner revenues. The demand-side chapter compares residential, commercial and industrial programs in Iowa. Impact calculations include: incremental labor and materials for program planning, installation and operations, as well as sales taxes and electricity saved. Results from supply-side calculations in the three states analyzed indicate that adding new wind power can have a greater impact to a state's economy than adding new gas or coal power due to resource location, taxes and infrastructure. Additionally, demand-side management programs have a higher relative percentage of in-state dollar flow than supply-side solutions, though demand-side programs typically involve fewer MWh and dollars than supply-side generation. Methods for this dissertation include researching

Acid rain compliance planning using decision analysis

International Nuclear Information System (INIS)

Norris, C.; Sweet, T.; Borison, A.

1991-01-01

Illinois Power Company (IP) is an investor-owned electric and natural gas utility serving portions of downstate Illinois. In addition to one nuclear unit and several small gas and/or oil-fired units, IP has ten coal-fired units. It is easy to understand the impact the Clean Air Act Amendments of 1990 (CAAA) could have on IP. Prior to passage of the CAAA, IP formed several teams to evaluate the specific compliance options at each of the high sulfur coal units. Following that effort, numerous economic analyses of compliance strategies were conducted. The CAAA have introduced a new dimension to planning under uncertainty. Not only are many of the familiar variables uncertain, but the specific form of regulation, and indeed, the compliance goal itself is hard to define. For IP, this led them to use techniques not widely used within their corporation. This paper summarizes the analytical methods used in these analyses and the preliminary results as of July, 1991. The analysis used three approaches to examine the acid rain compliance decision. These approaches were: (1) the 'most-likely,' or single-path scenario approach; (2) a multi-path strategy analysis using the strategies defined in the single-scenario analysis; and (3) a less constrained multi-path option analysis which selects the least cost compliance option for each unit

Applying real options in investment decisions relating to environmental pollution

Energy Technology Data Exchange (ETDEWEB)

Lin, Tyrone T. [Department of International Business, National Dong Hwa University, 1, Sec. 2, Da Hsueh Road, Shou-Feng, Hualien 974, Taiwan (China)]. E-mail: tjlin@mail.ndhu.edu.tw; Ko, C.-C. [Department of International Trade, Jin Wen Institute of Technology, Taiwan (China); Yeh, H.-N. [Graduate School of Management, Ming Chuan University, Taiwan (China)

2007-04-15

This study focuses on how to assess the optimal environmental investment decisions under economic and ecological uncertainty, and establishes the continuous time model using the real option approach to optimize environmental pollution policy. Unlike traditional cost benefit analysis, this work extends the model of [Pindyck, R.S., 2002. Optimal timing problems in environmental economics. Journal of Economic Dynamics and Control 26(9-10), 1677-1697], and attempts to identify the storage threshold of pollution stocks and the optimal timing for implementing environmental pollution decisions.

Applying real options in investment decisions relating to environmental pollution

International Nuclear Information System (INIS)

Lin, Tyrone T.; Ko, C.-C.; Yeh, H.-N.

2007-01-01

This study focuses on how to assess the optimal environmental investment decisions under economic and ecological uncertainty, and establishes the continuous time model using the real option approach to optimize environmental pollution policy. Unlike traditional cost benefit analysis, this work extends the model of [Pindyck, R.S., 2002. Optimal timing problems in environmental economics. Journal of Economic Dynamics and Control 26(9-10), 1677-1697], and attempts to identify the storage threshold of pollution stocks and the optimal timing for implementing environmental pollution decisions

The contention within health economics: a micro-economic foundation using a macro-economic analysis.

Science.gov (United States)

Yaxley, I L

1998-03-01

Health economists claim to use market economics combined with the micro-economic concepts of opportunity cost and the margin to advise on priority setting. However, they are advising on setting priorities through a macro-economic analysis using the costs of the supplier, thus prioritising the producer and not the consumer as the dynamic of economic activity. For health economists any contention within priority setting is due to lack of data not their confusion over fundamental concepts.

Calculating when elective abdominal aortic aneurysm repair improves survival for individual patients: development of the Aneurysm Repair Decision Aid and economic evaluation.

Science.gov (United States)

Grant, Stuart W; Sperrin, Matthew; Carlson, Eric; Chinai, Natasha; Ntais, Dionysios; Hamilton, Matthew; Dunn, Graham; Buchan, Iain; Davies, Linda; McCollum, Charles N

2015-04-01

Abdominal aortic aneurysm (AAA) repair aims to prevent premature death from AAA rupture. Elective repair is currently recommended when AAA diameter reaches 5.5 cm (men) and 5.0 cm (women). Applying population-based indications may not be appropriate for individual patient decisions, as the optimal indication is likely to differ between patients based on age and comorbidities. To develop an Aneurysm Repair Decision Aid (ARDA) to indicate when elective AAA repair optimises survival for individual patients and to assess the cost-effectiveness and associated uncertainty of elective repair at the aneurysm diameter recommended by the ARDA compared with current practice. The UK Vascular Governance North West and National Vascular Database provided individual patient data to develop predictive models for perioperative mortality and survival. Data from published literature were used to model AAA growth and risk of rupture. The cost-effectiveness analysis used data from published literature and from local and national databases. A combination of systematic review methods and clinical registries were used to provide data to populate models and inform the structure of the ARDA. Discrete event simulation (DES) was used to model the patient journey from diagnosis to death and synthesised data were used to estimate patient outcomes and costs for elective repair at alternative aneurysm diameters. Eight patient clinical scenarios (vignettes) were used as exemplars. The DES structure was validated by clinical and statistical experts. The economic evaluation estimated costs, quality-adjusted life-years (QALYs) and incremental cost-effectiveness ratios (ICERs) from the NHS, social care provider and patient perspective over a lifetime horizon. Cost-effectiveness acceptability analyses and probabilistic sensitivity analyses explored uncertainty in the data and the value for money of ARDA-based decisions. The ARDA outcome measures include perioperative mortality risk, annual risk of

Combined Economic and Hydrologic Modeling to Support Collaborative Decision Making Processes

Science.gov (United States)

Sheer, D. P.

2008-12-01

For more than a decade, the core concept of the author's efforts in support of collaborative decision making has been a combination of hydrologic simulation and multi-objective optimization. The modeling has generally been used to support collaborative decision making processes. The OASIS model developed by HydroLogics Inc. solves a multi-objective optimization at each time step using a mixed integer linear program (MILP). The MILP can be configured to include any user defined objective, including but not limited too economic objectives. For example, an estimated marginal value for water for crops and M&I use were included in the objective function to drive trades in a model of the lower Rio Grande. The formulation of the MILP, constraints and objectives, in any time step is conditional: it changes based on the value of state variables and dynamic external forcing functions, such as rainfall, hydrology, market prices, arrival of migratory fish, water temperature, etc. It therefore acts as a dynamic short term multi-objective economic optimization for each time step. MILP is capable of solving a general problem that includes a very realistic representation of the physical system characteristics in addition to the normal multi-objective optimization objectives and constraints included in economic models. In all of these models, the short term objective function is a surrogate for achieving long term multi-objective results. The long term performance for any alternative (especially including operating strategies) is evaluated by simulation. An operating rule is the combination of conditions, parameters, constraints and objectives used to determine the formulation of the short term optimization in each time step. Heuristic wrappers for the simulation program have been developed improve the parameters of an operating rule, and are initiating research on a wrapper that will allow us to employ a genetic algorithm to improve the form of the rule (conditions, constraints

Coupled hydrological, ecological, decision and economic models for monetary valuation of riparian ecosystem services

Science.gov (United States)

Goodrich, D. C.; Brookshire, D.; Broadbent, C.; Dixon, M. D.; Brand, L. A.; Thacher, J.; Benedict, K. K.; Lansey, K. E.; Stromberg, J. C.; Stewart, S.; McIntosh, M.

2011-12-01

Water is a critical component for sustaining both natural and human systems. Yet the value of water for sustaining ecosystem services is not well quantified in monetary terms. Ideally decisions involving water resource management would include an apples-to-apples comparison of the costs and benefits in dollars of both market and non-market goods and services - human and ecosystem. To quantify the value of non-market ecosystem services, scientifically defensible relationships must be developed that link the effect of a decision (e.g. human growth) to the change in ecosystem attributes from current conditions. It is this linkage that requires the "poly-disciplinary" coupling of knowledge and models from the behavioral, physical, and ecological sciences. In our experience another key component of making this successful linkage is development of a strong poly-disciplinary scientific team that can readily communicate complex disciplinary knowledge to non-specialists outside their own discipline. The time to build such a team that communicates well and has a strong sense of trust should not be underestimated. The research described in the presentation incorporated hydrologic, vegetation, avian, economic, and decision models into an integrated framework to determine the value of changes in ecological systems that result from changes in human water use. We developed a hydro-bio-economic framework for the San Pedro River Region in Arizona that considers groundwater, stream flow, and riparian vegetation, as well as abundance, diversity, and distribution of birds. In addition, we developed a similar framework for the Middle Rio Grande of New Mexico. There are six research components for this project: (1) decision support and scenario specification, (2) regional groundwater model, (3) the riparian vegetation model, (4) the avian model, (5) methods for displaying the information gradients in the valuation survey instruments (Choice Modeling and Contingent Valuation), and (6

The economic case for precision medicine.

Science.gov (United States)

Gavan, Sean P; Thompson, Alexander J; Payne, Katherine

2018-01-01

Introduction : The advancement of precision medicine into routine clinical practice has been highlighted as an agenda for national and international health care policy. A principle barrier to this advancement is in meeting requirements of the payer or reimbursement agency for health care. This special report aims to explain the economic case for precision medicine, by accounting for the explicit objectives defined by decision-makers responsible for the allocation of limited health care resources. Areas covered : The framework of cost-effectiveness analysis, a method of economic evaluation, is used to describe how precision medicine can, in theory, exploit identifiable patient-level heterogeneity to improve population health outcomes and the relative cost-effectiveness of health care. Four case studies are used to illustrate potential challenges when demonstrating the economic case for a precision medicine in practice. Expert commentary : The economic case for a precision medicine should be considered at an early stage during its research and development phase. Clinical and economic evidence can be generated iteratively and should be in alignment with the objectives and requirements of decision-makers. Programmes of further research, to demonstrate the economic case of a precision medicine, can be prioritized by the extent that they reduce the uncertainty expressed by decision-makers.

Gender Participation in Economic Activities and Decision Making in Keffi Area of Nigeria

OpenAIRE

Hassan Ishaq Ibrahim; Napoleon Danbeki Saingbe; Zubairu Ajiya Abdulkadir

2012-01-01

The study assessed gender participation and decision making role in economic activities using data collected from 120 respondents. The results revealed that female participation was frequent in crop post-harvest activities and poultry management while male participation was frequent in crop pre-harvest operations only. Female respondents participated occasionally in home gardening, goat rearing, hair dressing and food processing. Educational level, years of experience, personal income and cre...

Fuzzy Multicriteria Decision Analysis for Adaptive Watershed Management

Science.gov (United States)

Chang, N.

2006-12-01

The dramatic changes of societal complexity due to intensive interactions among agricultural, industrial, and municipal sectors have resulted in acute issues of water resources redistribution and water quality management in many river basins. Given the fact that integrated watershed management is more a political and societal than a technical challenge, there is a need for developing a compelling method leading to justify a water-based land use program in some critical regions. Adaptive watershed management is viewed as an indispensable tool nowadays for providing step-wise constructive decision support that is concerned with all related aspects of the water consumption cycle and those facilities affecting water quality and quantity temporally and spatially. Yet the greatest challenge that decision makers face today is to consider how to leverage ambiguity, paradox, and uncertainty to their competitive advantage of management policy quantitatively. This paper explores a fuzzy multicriteria evaluation method for water resources redistribution and subsequent water quality management with respect to a multipurpose channel-reservoir system--the Tseng- Wen River Basin, South Taiwan. Four fuzzy operators tailored for this fuzzy multicriteria decision analysis depict greater flexibility in representing the complexity of various possible trade-offs among management alternatives constrained by physical, economic, and technical factors essential for adaptive watershed management. The management strategies derived may enable decision makers to integrate a vast number of internal weirs, water intakes, reservoirs, drainage ditches, transfer pipelines, and wastewater treatment facilities within the basin and bring up the permitting issue for transboundary diversion from a neighboring river basin. Experience gained indicates that the use of different types of fuzzy operators is highly instructive, which also provide unique guidance collectively for achieving the overarching goals

Choice blindness in financial decision making

Directory of Open Access Journals (Sweden)

Owen McLaughlin

2013-09-01

Full Text Available Choice Blindness is an experimental paradigm that examines the interplay between individuals' preferences, decisions, and expectations by manipulating the relationship between intention and choice. This paper expands upon the existing Choice Blindness framework by investigating the presence of the effect in an economically significant decision context, specifically that of pension choice. In addition, it investigates a number of secondary factors hypothesized to modulate Choice Blindness, including reaction time, risk preference, and decision complexity, as well as analysing the verbal reports of non-detecting participants. The experiment was administered to 100 participants of mixed age and educational attainment. The principal finding was that no more than 37.2% of manipulated trials were detected over all conditions, a result consistent with previous Choice Blindness research. Analysis of secondary factors found that reaction time, financial sophistication and decision complexity were significant predictors of Choice Blindness detection, while content analysis of non-detecting participant responses found that 20% implied significant preference changes and 62% adhered to initial preferences. Implications of the Choice Blindness effect in the context of behavioural economics are discussed, and an agenda for further investigation of the paradigm in this context is outlined.

DECISIONS, METHODS AND TECHNIQUES RELATED TO DECISION SUPPORT SYSTEMS (DSS

Directory of Open Access Journals (Sweden)

Boghean Florin

2015-07-01

Full Text Available Generalised uncertainty, a phenomenon that today’s managers are facing as part of their professional experience, makes it impossible to anticipate the way the business environment will evolve or what will be the consequences of the decisions they plan to implement. Any decision making process within the company entails the simultaneous presence of a number of economic, technical, juridical, human and managerial variables. The development and the approval of a decision is the result of decision making activities developed by the decision maker and sometimes by a decision support team or/and a decision support system (DSS. These aspects related to specific applications of decision support systems in risk management will be approached in this research paper. Decisions in general and management decisions in particular are associated with numerous risks, due to their complexity and increasing contextual orientation. In each business entity, there are concerns with the implementation of risk management in order to improve the likelihood of meeting objectives, the trust of the parties involved, increase the operational safety and security as well as the protection of the environment, minimise losses, improve organisational resilience in order to diminish the negative impact on the organisation and provide a solid foundation for decision making. Since any business entity is considered to be a wealth generator, the analysis of their performance should not be restricted to financial efficiency alone, but will also encompass their economic efficiency as well. The type of research developed in this paper entails different dimensions: conceptual, methodological, as well as empirical testing. Subsequently, the conducted research entails a methodological side, since the conducted activities have resulted in the presentation of a simulation model that is useful in decision making processes on the capital market. The research conducted in the present paper

Methods of economic analysis applied to fusion research. Fourth annual report

International Nuclear Information System (INIS)

Hazelrigg, G.A. Jr.

1980-01-01

The current study reported here has involved three separate tasks. The first task deals with the development of expected utility analysis techniques for economic evaluation of fusion research. A decision analytic model is developed for the incorporation of market uncertainties, as well as technological uncertainties in an economic evaluation of long-range energy research. The model is applied to the case of fusion research. The second task deals with the potential effects of long-range energy RD and D on fossil fuel prices. ECON's previous fossil fuel price model is extended to incorporate a dynamic demand function. The dynamic demand function supports price fluctuations such as those observed in the marketplace. The third task examines alternative uses of fusion technologies, specifically superconducting technologies and first wall materials to determine the potential for alternative, nonfusion use of these technologies. In both cases, numerous alternative uses are found

A regret theory approach to decision curve analysis: A novel method for eliciting decision makers' preferences and decision-making

OpenAIRE

Vickers Andrew; Hozo Iztok; Tsalatsanis Athanasios; Djulbegovic Benjamin

2010-01-01

Abstract Background Decision curve analysis (DCA) has been proposed as an alternative method for evaluation of diagnostic tests, prediction models, and molecular markers. However, DCA is based on expected utility theory, which has been routinely violated by decision makers. Decision-making is governed by intuition (system 1), and analytical, deliberative process (system 2), thus, rational decision-making should reflect both formal principles of rationality and intuition about good decisions. ...

The Decision Module Working Paper

Science.gov (United States)

1973-12-01

and goal change has received very little attention In the litera- ture on the analysis of choice situations. It has generally been the case that the...Decision Making: Approach and Prototype" (197:0, done In context of the Mesarovlc - Pestel World Model Projet’ The Issues dealing with «-he cho ce...Nelson, Winder, and Schuette (1973) on evolutionary economic growth models. The discussion of the two components of the decision module that follows

Sensitivity Analysis in Sequential Decision Models.

Science.gov (United States)

Chen, Qiushi; Ayer, Turgay; Chhatwal, Jagpreet

2017-02-01

Sequential decision problems are frequently encountered in medical decision making, which are commonly solved using Markov decision processes (MDPs). Modeling guidelines recommend conducting sensitivity analyses in decision-analytic models to assess the robustness of the model results against the uncertainty in model parameters. However, standard methods of conducting sensitivity analyses cannot be directly applied to sequential decision problems because this would require evaluating all possible decision sequences, typically in the order of trillions, which is not practically feasible. As a result, most MDP-based modeling studies do not examine confidence in their recommended policies. In this study, we provide an approach to estimate uncertainty and confidence in the results of sequential decision models. First, we provide a probabilistic univariate method to identify the most sensitive parameters in MDPs. Second, we present a probabilistic multivariate approach to estimate the overall confidence in the recommended optimal policy considering joint uncertainty in the model parameters. We provide a graphical representation, which we call a policy acceptability curve, to summarize the confidence in the optimal policy by incorporating stakeholders' willingness to accept the base case policy. For a cost-effectiveness analysis, we provide an approach to construct a cost-effectiveness acceptability frontier, which shows the most cost-effective policy as well as the confidence in that for a given willingness to pay threshold. We demonstrate our approach using a simple MDP case study. We developed a method to conduct sensitivity analysis in sequential decision models, which could increase the credibility of these models among stakeholders.

Development of an integrated economic decision-support tool for the remediation of contaminated sites. Overview note

International Nuclear Information System (INIS)

Samson, R.; Bage, G.

2004-05-01

This report concludes the first design phase of an innovative software tool which, when completed, will allow managers of contaminated sites to make optimal decisions with respect to site remediation. The principal objective of the project was to develop the foundations for decision-support software (SITE VII) which will allow a comprehensive and rigorous approach to the comparison of remediation scenarios for sites contaminated with petroleum hydrocarbons. During this first phase of the project, the NSERC Industrial Chair in Site Remediation and Management of the Ecole Polytechnique de Montreal has completed four stages in the design of a decision-support tool that could be applied by any site manager using a simple computer. These four stages are: refinement of a technico-economic evaluation model; development of databases for five soil remediation technologies; design of a structure for integration of the databases with the technico-economic model; and simulation of the remediation of a contaminated site using the technico-economic model and a subset of the databases. In the interim report, the emphasis was placed on the development of the technico-economic model, supported by a very simple, single-technology simulation of remediation. In the present report, the priority is placed on the integration of the different components required for the creation of decision-support software based on the technico-economic model. An entire chapter of this report is devoted to elaborating the decision structure of the software. The treatment of information within the software is shown schematically and explained step-by-step. Five remediation technologies are handled by the software: three in-situ technologies (bio-venting, bio-slurping, bio-sparging) and two ex-situ technologies (thermal desorption, Bio-pile treatment). A technology file has been created for each technology, containing a brief description of the technology, its performance, its criteria of applicability

Decision analysis for dynamic accounting of nuclear material

International Nuclear Information System (INIS)

Shipley, J.P.

1978-01-01

Effective materials accounting for special nuclear material in modern fuel cycle facilities will depend heavily on sophisticated data analysis techniques. Decision analysis, which combines elements of estimation theory, decision theory, and systems analysis, is a framework well suited to the development and application of these techniques. Augmented by pattern-recognition tools such as the alarm-sequence chart, decision analysis can be used to reduce errors caused by subjective data evaluation and to condense large collections of data to a smaller set of more descriptive statistics. Application to data from a model plutonium nitrate-to-oxide conversion process illustrates the concepts

The use of non-economic criteria in pricing and reimbursement decisions in Central and Eastern Europe: issues, trends and recommendations.

Science.gov (United States)

Kolasa, Katarzyna; Kalo, Zoltan; Zah, Vladimir

2016-08-01

According to some experts, there is still room for improvement with regard to the inclusion of ethical considerations in Health Technology Assessment (HTA). The pros and cons of the introduction of non-economic criteria in the HTA process in Central and Eastern Europe (CEE) are discussed. In comparison to Western Europe, financial considerations are even more important in CEE settings; however, it could also be said that attachment to equity and justice is part of CEE's heritage. Therefore, the trade-off between conflicting principles is evaluated. Expert commentary: To ensure the right balance between equity and efficiency in decision making, the current HTA framework has to be further augmented to allow all conflicting criteria to be addressed to a satisfactory degree. Following other examples, the applicability of multi criteria decision analysis technique to CEE settings should be further investigated.

Dynamics of individual perceptual decisions

Science.gov (United States)

Clark, Torin K.; Lu, Yue M.; Karmali, Faisal

2015-01-01

Perceptual decision making is fundamental to a broad range of fields including neurophysiology, economics, medicine, advertising, law, etc. Although recent findings have yielded major advances in our understanding of perceptual decision making, decision making as a function of time and frequency (i.e., decision-making dynamics) is not well understood. To limit the review length, we focus most of this review on human findings. Animal findings, which are extensively reviewed elsewhere, are included when beneficial or necessary. We attempt to put these various findings and data sets, which can appear to be unrelated in the absence of a formal dynamic analysis, into context using published models. Specifically, by adding appropriate dynamic mechanisms (e.g., high-pass filters) to existing models, it appears that a number of otherwise seemingly disparate findings from the literature might be explained. One hypothesis that arises through this dynamic analysis is that decision making includes phasic (high pass) neural mechanisms, an evidence accumulator and/or some sort of midtrial decision-making mechanism (e.g., peak detector and/or decision boundary). PMID:26467513

Decision Making with Imperfect Decision Makers

CERN Document Server

Guy, Tatiana Valentine; Wolpert, David H

2012-01-01

Prescriptive Bayesian decision making has reached a high level of maturity and is well-supported algorithmically. However, experimental data shows that real decision makers choose such Bayes-optimal decisions surprisingly infrequently, often making decisions that are badly sub-optimal. So prevalent is such imperfect decision-making that it should be accepted as an inherent feature of real decision makers living within interacting societies. To date such societies have been investigated from an economic and gametheoretic perspective, and even to a degree from a physics perspective. However, lit

An Integrated Decision Support System with Hydrological Processes and Socio-economic Assessments

Science.gov (United States)

Yu, Yang; Disse, Markus; Yu, Ruide

2017-04-01

The debate over the effectiveness of Integrated Water Resources Management (IWRM) in practice has lasted for years. As the complexity and scope of IWRM increases, the difficulties of hydrological modeling is shifting from the model itself into the links with other cognate sciences, to understand the interactions among water, earth, ecosystem and humans. This work presents the design and development of a decision support system (DSS) that links the outputs of hydrological models with real-time decision making on social-economic assessments and land use changes. Discharge and glacier geometry changes were simulated with hydrological model WASA. Irrigation and ecological water were simulated by a new commercial software MIKE HYDRO. Groundwater was simulated by MODFLOW. All the outputs of theses hydrological models were integrated as inputs into the DSS in three types of links: regression equations, stationary data inputs, or dynamic data inputs into DSS as the models running parallel in the simulation periods. Within DSS, three types of logics were established: equations, conditional statements and fuzzy logics. The programming was realized in C++. The implementation of DSS takes place in the Tarim River Basin. With the mainstream of 1,321km and located in an arid area in northwest China, the Tarim River is China's longest inland river. The Tarim basin on the northern edge of the Taklamakan desert is an extremely arid region. In this region, agricultural water consumption and allocation management are crucial to address the conflicts among irrigation water users from upstream to downstream. Since 2011, the German Ministry of Science and Education BMBF established the Sino-German SuMaRiO project, for the sustainable management of river oases along the Tarim River. Project SuMaRiO focus on realizable management strategies, considering social, economic and ecological criteria. This will have positive effects for nearly 10 million inhabitants of different ethnic groups

A Costing Analysis for Decision Making Grid Model in Failure-Based Maintenance

OpenAIRE

M. A., Burhanuddin; Halawani, Sami M.; Ahmad, A. R.

2011-01-01

Background. In current economic downturn, industries have to set good control on production cost, to maintain their profit margin. Maintenance department as an imperative unit in industries should attain all maintenance data, process information instantaneously, and subsequently transform it into a useful decision. Then act on the alternative to reduce production cost. Decision Making Grid model is used to identify strategies for maintenance decision. However, the model has limitation as it c...

Application of decision analysis in antibiotic formulary choices.

Science.gov (United States)

Szymusiak-Mutnick, B; Mutnick, A H

1994-01-01

To introduce the reader to the fundamentals involved in using decision analysis as a tool in evaluating the associated costs and effectiveness of comparable therapeutic agents. Currently available literature citations were used to provide the reader with basic references whose purpose is to provide a step-by-step approach for using Decision Analysis in conducting a cost-effective comparison of three commonly used antibiotics. Data were gathered from a previously conducted retrospective chart review where the three antibiotics were used for either prophylactic, empiric, or documented infections. Although this study was limited by its retrospective nature, the reader can use the data to appreciate the fundamentals of decision analysis. The continually changing climate in healthcare and the added visibility of pharmacologic agents in the treatment and prevention of disease has increased pressure on pharmacy departments to provide therapeutic agents that are cost-effective. Decision analysis can be used to compare therapeutic agents, in terms of financial as well as clinical outcomes, in a structured fashion that all members of the health care team can understand. The application of Decision analysis is appropriate for many therapeutic agents, not just antibiotics.

Fast breeder reactor decision: an analysis of limits and the limits of analysis. A study prepared for the use of the Joint Economic Committee, Congress of the United States, Ninety-Fourth Congress, Second Session

International Nuclear Information System (INIS)

Anon.

1976-01-01

Decisions on the development of the Liquid Metal Fast Breeder Reactor (LMFBR), which may involve nontransferable gains for current generations and major losses for future generations cannot be determined on a cost-benefit basis. Several cost-benefit analyses of the LMFBR are reviewed. With only one exception, all major analyses compare LMFBR futures with non-LMFBR futures and consider only the energy supply aspect of alternatives. The Manne study, however, compares peak-load pricing of electricity and points out that removal of distortions in energy pricing has greater economic benefits than economic losses due to delays in introducing the LMFBR. Revised price structures for electricity could have a larger future payoff than rapid LMFBR development. Constraints on LMFBR development, such as resource supplies, technological development, licensing, siting, and waste disposal, may have been underestimated. Appropriate institutions and procedures for nuclear decision making must be defined

Health-care decision-making processes in Latin America: problems and prospects for the use of economic evaluation.

Science.gov (United States)

Iglesias, Cynthia P; Drummond, Michael F; Rovira, Joan

2005-01-01

The use of economic evaluation studies (EE) in the decision-making process within the health-care system of nine Latin American (LA) and three European countries was investigated. The aim was to identify the opportunities, obstacles, and changes needed to facilitate the introduction of EE as a formal tool in health-care decision-making processes in LA. A comparative study was conducted based on existing literature and information provided through a questionnaire applied to decision makers in Argentina, Brazil, Colombia, Cuba, Mexico, Nicaragua, Peru, Portugal Spain, United Kingdom, Uruguay, and Venezuela. Systematic electronic searches of HEED, NHS EED, and LILACS were conducted to identify published economic evaluation studies in LA from 1982 onward. There is relatively little evidence of the conduct and use of EE within the health care systems in LA. Electronic searches retrieved 554 records; however, only 93 were EE. In the nine LA participating countries, broad allocation of health-care resources is primarily based on political criteria, historical records, geographical areas, and specific groups of patients and diseases. Public-health provision and inclusion of services in health-insurance package are responsibilities of the Ministry of Health. Decisions regarding the purchase of medicines are primarily made through public tenders, and mainly based on differences in clinical efficacy and the price of health technologies of interest. To expedite the process of incorporating EE as a formal tool to inform decision-making processes within the health-care systems in LA countries, two main conditions need to be fulfilled. First, adequate resources and skills need to be available to conduct EE of good quality. Second, decision-making procedures need to be modified to accommodate "evidence-based" approaches such as EE.

Economic analysis of cloud-based desktop virtualization implementation at a hospital.

Science.gov (United States)

Yoo, Sooyoung; Kim, Seok; Kim, Taeki; Baek, Rong-Min; Suh, Chang Suk; Chung, Chin Youb; Hwang, Hee

2012-10-30

Cloud-based desktop virtualization infrastructure (VDI) is known as providing simplified management of application and desktop, efficient management of physical resources, and rapid service deployment, as well as connection to the computer environment at anytime, anywhere with any device. However, the economic validity of investing in the adoption of the system at a hospital has not been established. This study computed the actual investment cost of the hospital-wide VDI implementation at the 910-bed Seoul National University Bundang Hospital in Korea and the resulting effects (i.e., reductions in PC errors and difficulties, application and operating system update time, and account management time). Return on investment (ROI), net present value (NPV), and internal rate of return (IRR) indexes used for corporate investment decision-making were used for the economic analysis of VDI implementation. The results of five-year cost-benefit analysis given for 400 Virtual Machines (VMs; i.e., 1,100 users in the case of SNUBH) showed that the break-even point was reached in the fourth year of the investment. At that point, the ROI was 122.6%, the NPV was approximately US$192,000, and the IRR showed an investment validity of 10.8%. From our sensitivity analysis to changing the number of VMs (in terms of number of users), the greater the number of adopted VMs was the more investable the system was. This study confirms that the emerging VDI can have an economic impact on hospital information system (HIS) operation and utilization in a tertiary hospital setting.

Economic analysis of cloud-based desktop virtualization implementation at a hospital

Directory of Open Access Journals (Sweden)

Yoo Sooyoung

2012-10-01

Full Text Available Abstract Background Cloud-based desktop virtualization infrastructure (VDI is known as providing simplified management of application and desktop, efficient management of physical resources, and rapid service deployment, as well as connection to the computer environment at anytime, anywhere with anydevice. However, the economic validity of investing in the adoption of the system at a hospital has not been established. Methods This study computed the actual investment cost of the hospital-wide VDI implementation at the 910-bed Seoul National University Bundang Hospital in Korea and the resulting effects (i.e., reductions in PC errors and difficulties, application and operating system update time, and account management time. Return on investment (ROI, net present value (NPV, and internal rate of return (IRR indexes used for corporate investment decision-making were used for the economic analysis of VDI implementation. Results The results of five-year cost-benefit analysis given for 400 Virtual Machines (VMs; i.e., 1,100 users in the case of SNUBH showed that the break-even point was reached in the fourth year of the investment. At that point, the ROI was 122.6%, the NPV was approximately US$192,000, and the IRR showed an investment validity of 10.8%. From our sensitivity analysis to changing the number of VMs (in terms of number of users, the greater the number of adopted VMs was the more investable the system was. Conclusions This study confirms that the emerging VDI can have an economic impact on hospital information system (HIS operation and utilization in a tertiary hospital setting.

The effects of exposure to images of others' suffering and vulnerability on altruistic, trust-based, and reciprocated economic decision-making.

Science.gov (United States)

Powell, Philip A; Wills, Olivia; Reynolds, Gemma; Puustinen-Hopper, Kaisa; Roberts, Jennifer

2018-01-01

In this paper we explored the effects of exposure to images of the suffering and vulnerability of others on altruistic, trust-based, and reciprocated incentivized economic decisions, accounting for differences in participants' dispositional empathy and reported in-group trust for their recipient(s). This was done using a pictorial priming task, framed as a memory test, and a triadic economic game design. Using the largest experimental sample to date to explore this issue, our integrated analysis of two online experiments (total N = 519), found statistically consistent evidence that exposure to images of suffering and vulnerability (vs. neutral images) increased altruistic in-group giving as measured by the "triple dictator game", and that the manipulation was significantly more effective in those who reported lower trust for their recipients. The experimental manipulation also significantly increased altruistic giving in the standard "dictator game" and trust-based giving in the "investment game", but only in those who were lower in in-group trust and also high in affective or cognitive empathy. Complementary qualitative evidence revealed the strongest motivations associated with increased giving in the experimental condition were greater assumed reciprocation and a lower aversion to risk. However, no consistent effects of the experimental manipulation on participants' reciprocated decisions were observed. These findings suggest that, as well as altruistic decision-making in the "triple dictator game", collaboratively witnessing the suffering of others may heighten trust-based in-group giving in the "investment game" for some people, but the effects are heterogeneous and sensitive to context.

Sustainability-Related Decision Making in Industrial Buildings: An AHP Analysis

Directory of Open Access Journals (Sweden)

Jesús Cuadrado

2015-01-01

Full Text Available Few other sectors have such a great impact on sustainability as the construction industry, in which concerns over the environmental dimension have been growing for some time. The sustainability assessment methodology presented in this paper is an AHP (Analytic Hierarchy Process based on Multicriteria Decision Making (MCDM and includes the main sustainability factors for consideration in the construction of an industrial building (environmental, economic, and social, as well as other factors that greatly influence the conceptual design of the building (employee safety, corporate image. Its simplicity is well adapted to its main objective, to serve as a sustainability-related decision making tool in industrial building projects, during the design stage. Accompanied by an economic valuation of the actions to be undertaken, this tool means that the most cost-effective solution may be selected from among the various options.

Application of economic principles in healthcare priority setting.

Science.gov (United States)

Bate, Angela; Mitton, Craig

2006-06-01

In healthcare, resources are often insufficient to meet all claims on them. In this respect, resources are considered scarce and have to be managed by prioritizing between competing claims. Economics as a discipline explicitly addresses this reality by acknowledging resource scarcity. However, the extent to which economics actually influences such prioritizing decisions in healthcare is unclear. The purpose of this paper is to review the use of economics in priority setting decision making. We outline the key principles of economics as they apply to priority setting and review the methods reported in the literature with respect to these. We find that these methods, even economic methods (e.g., those typically used in conducting economic evaluations such as cost-effectiveness analyses) do not tend to explicitly incorporate economic principles. We argue therefore that these methods, when applied to the context of priority setting, are not sufficient and that what is required is a broader framework that can incorporate the output from economic methods yet also be pragmatically applicable. We then go on to present an alternative approach - namely program budgeting and marginal analysis. Finally, we put forward our case for using program budgeting and marginal analysis in priority setting practice and set out some future research challenges.

Quantitative fibronectin to help decision-making in women with symptoms of preterm labour (QUIDS) part 1: Individual participant data meta-analysis and health economic analysis.

Science.gov (United States)

Stock, Sarah J; Wotherspoon, Lisa M; Boyd, Kathleen A; Morris, Rachel K; Dorling, Jon; Jackson, Lesley; Chandiramani, Manju; David, Anna L; Khalil, Asma; Shennan, Andrew; Hodgetts Morton, Victoria; Lavender, Tina; Khan, Khalid; Harper-Clarke, Susan; Mol, Ben W; Riley, Richard D; Norrie, John; Norman, Jane E

2018-04-07

The aim of the QUIDS study is to develop a decision support tool for the management of women with symptoms and signs of preterm labour, based on a validated prognostic model using quantitative fetal fibronectin (qfFN) concentration, in combination with clinical risk factors. The study will evaluate the Rapid fFN 10Q System (Hologic, Marlborough, Massachusetts) which quantifies fFN in a vaginal swab. In part 1 of the study, we will develop and internally validate a prognostic model using an individual participant data (IPD) meta-analysis of existing studies containing women with symptoms of preterm labour alongside fFN measurements and pregnancy outcome. An economic analysis will be undertaken to assess potential cost-effectiveness of the qfFN prognostic model. The primary endpoint will be the ability of the prognostic model to rule out spontaneous preterm birth within 7 days. Six eligible studies were identified by systematic review of the literature and five agreed to provide their IPD (n=5 studies, 1783 women and 139 events of preterm delivery within 7 days of testing). The study is funded by the National Institute of Healthcare Research Health Technology Assessment (HTA 14/32/01). It has been approved by the West of Scotland Research Ethics Committee (16/WS/0068). CRD42015027590. Protocol version 2, date 1 November 2016. © Article author(s) (or their employer(s) unless otherwise stated in the text of the article) 2018. All rights reserved. No commercial use is permitted unless otherwise expressly granted.

Technical and economic analysis of electricity generation from forest, fossil, and wood-waste fuels in a Finnish heating plant

International Nuclear Information System (INIS)

Palander, Teijo

2011-01-01

The Finnish energy industry is subject to policy decisions regarding renewable energy production and energy efficiency. Conventional electricity generation has environmental side-effects that may cause global warming. Renewable fuels are superior because they offer near-zero net emissions. In this study, I investigated a heating mill's ability to generate electricity from forest fuels in southern Finland on a 1-year strategic decision-making horizon. I solved the electricity generation problem using optimization of the energy products and fuel mixtures based on energy efficiency and forest technology. The decision environment was complicated by the sequence-dependent procurement chains for forest fuels. The optimal product and fuel mixtures were selected by minimizing procurement costs, maximizing production revenues, and minimizing energy losses. The combinatorial complexity of the problem required the use of adaptive techniques to solve a multiple-objective linear programming system with industrial relevance. I discuss the properties of the decision-support system and methodology and illustrate pricing of electricity generation based on real industrial data. The electricity-generation, -purchase, and -sales decisions are made based on a comprehensive technical and economic analysis that accounts for procurement of local forest fuels in a holistic supply chain model. -- Highlights: → I use adaptive techniques to solve a multiple-objective linear programming system with industrial relevance. → I investigated a heating mill's ability to generate electricity from forest fuels. → The electricity-generation, -purchase, and -sales decisions are made based on a comprehensive technical and economic analysis. → The optimal product and fuel mixtures were selected by minimizing procurement costs, maximizing production revenues, and minimizing energy losses.

Bringing the patient back in: behavioral decision-making and choice in medical economics.

Science.gov (United States)

Mendoza, Roger Lee

2018-04-01

We explore the behavioral methodology and "revolution" in economics through the lens of medical economics. We address two questions: (1) Are mainstream economic assumptions of utility-maximization realistic approximations of people's actual behavior? (2) Do people maximize subjective expected utility, particularly in choosing from among the available options? In doing so, we illustrate-in terms of a hypothetical experimental sample of patients with dry eye diagnosis-why and how utility in pharmacoeconomic assessments might be valued differently by patients when subjective psychological, social, cognitive, and emotional factors are considered. While experimentally-observed or surveyed behavior yields stated (rather than revealed) preferences, behaviorism offers a robust toolset in understanding drug, medical device, and treatment-related decisions compared to the optimizing calculus assumed by mainstream economists. It might also do so more perilously than economists have previously understood, in light of the intractable uncertainties, information asymmetries, insulated third-party agents, entry barriers, and externalities that characterize healthcare. Behavioral work has been carried out in many sub-fields of economics. Only recently has it been extended to healthcare. This offers medical economists both the challenge and opportunity of balancing efficiency presumptions with relatively autonomous patient choices, notwithstanding their predictable, yet seemingly consistent, irrationality. Despite its comparative youth and limitations, the scientific contributions of behaviorism are secure and its future in medical economics appears to be promising.

Comparative Analysis of Investment Decision Models

Directory of Open Access Journals (Sweden)

Ieva Kekytė

2017-06-01

Full Text Available Rapid development of financial markets resulted new challenges for both investors and investment issues. This increased demand for innovative, modern investment and portfolio management decisions adequate for market conditions. Financial market receives special attention, creating new models, includes financial risk management and investment decision support systems.Researchers recognize the need to deal with financial problems using models consistent with the reality and based on sophisticated quantitative analysis technique. Thus, role mathematical modeling in finance becomes important. This article deals with various investments decision-making models, which include forecasting, optimization, stochatic processes, artificial intelligence, etc., and become useful tools for investment decisions.

Theory of imprevision from the economic and legal perspective of contract analysis

Directory of Open Access Journals (Sweden)

Radu Ştefan PĂTRU

2011-06-01

Full Text Available The new realities of the 21st century ask for a revitalization of the economic and legal systems so as to overcome the effects of the economic crisis. The current economic crisis is at the same time a challenge for the scientific milieu which is called to find the best solutions for the reversal and adaptation of the main scientific institutions. For the legal system, the contract represents an essential factor both theoretically and practically so that the new legislative decisions appear to be as highly important. As a particular case study, we intend to analyse the theory of imprevision both from the theoretical viewpoint and the one of practical consequences that the regulation of this institution might generate in the domestic legislative environment through the provisions of the New Civil Code. Far from our affiliation to the opinions that vividly sustain or reject the regulation of this theory, this article intends to be an objective analysis of the theory of imprevision representing one of the greatest challenges for the New Civil Code.

An economic analysis of BWR control rod blade management strategies. Final report

International Nuclear Information System (INIS)

Welsh, J.

1995-12-01

Nuclear power plants have available a number of alternative courses of action that can contribute to the reduction of personnel exposure to radiation. Possible actions at boiling water reactor (BWR) plants include accelerating the replacement of high-cobalt control rod blades (CRB) or the blades' high-cobalt pins and rollers with low or non-cobalt substitutes. To help utilities understand the exposure reduction and the economic costs and benefits associated with management alternatives, such as accelerated replacement of blades, pins and rollers, EPRI has initiated a project called Cost/Benefit Software for Analyses of Radiation Control Measures (RP1935-32). Through this project EPRI will incorporate engineering-economic techniques into a series of analytical tools that will provide useful insights about alternative exposure reduction options. Prototype software has been developed in an Excel worksheet to analyze issues associated with BWR control rod blade management options. The CRB replacement problem framework and analysis methodology incorporated into the software tool will help plant managers consider explicitly key engineering and economic issues that are relevant to exposure reduction decisions. This tool generates results that can help plant managers make decisions that are fiscally wise by showing all the cost and benefit implications associated with a management action under consideration. This report describes the general analytical approach for evaluating exposure reduction alternatives. The methodology used to analyze blade and pin and roller replacement alternatives, and the results of a case study application of the methodology and the software prototype at Commonwealth Edison

Use of the partial farm budget technique to predict the economic impact of the flock management decision to use B-mode ultrasonographic pregnancy diagnosis.

Science.gov (United States)

Sprecher, D J; Ley, W B; Whittier, W D; Bowen, J M; Thatcher, C D; Pelzer, K D; Moore, J M

1989-07-15

A computer spreadsheet was developed to predict the economic impact of a management decision to use B-mode ultrasonographic ovine pregnancy diagnosis. The spreadsheet design and spreadsheet cell formulas are provided. The program used the partial farm budget technique to calculate net return (NR) or cash flow changes that resulted from the decision to use ultrasonography. Using the program, either simple pregnancy diagnosis or pregnancy diagnosis with the ability to determine singleton or multiple pregnancies may be compared with no flock ultrasonographic pregnancy diagnosis. A wide range of user-selected regional variables are used to calculate the cash flow changes associated with the ultrasonography decisions. A variable may be altered through a range of values to conduct a sensitivity analysis of predicted NR. Example sensitivity analyses are included for flock conception rate, veterinary ultrasound fee, and the price of corn. Variables that influence the number of cull animals and the cost of ultrasonography have the greatest impact on predicted NR. Because the determination of singleton or multiple pregnancies is more time consuming, its economic practicality in comparison with simple pregnancy diagnosis is questionable. The value of feed saved by identifying and separately feeding ewes with singleton pregnancies is not offset by the increased ultrasonography cost.

A Techno-Economic Analysis of Emission Controls on Hydrocarbon Biofuel Production

Energy Technology Data Exchange (ETDEWEB)

Bhatt, Arpit; Zhang, Yimin; Davis, Ryan; Eberle, Annika; Heath, Garvin

2016-06-23

Biofuels have the potential to reduce our dependency on petroleum-derived transportation fuels and decrease greenhouse gas (GHG) emissions. Although the overall GHG emissions from biofuels are expected to be lower when compared to those of petroleum fuels, the process of converting biomass feedstocks into biofuels emits various air pollutants, which may be subject to federal air quality regulation or emission limits. While prior research has evaluated the technical and economic feasibility of biofuel technologies, gaps still exist in understanding the regulatory issues associated with the biorefineries and their economic implications on biofuel production costs (referred to as minimum fuel selling price (MFSP) in this study). The aim of our research is to evaluate the economic impact of implementing emission reduction technologies at biorefineries and estimate the cost effectiveness of two primary control technologies that may be required for air permitting purposes. We analyze a lignocellulosic sugars-to-hydrocarbon biofuel production pathway developed by the National Renewable Energy Laboratory (NREL) and implement air emission controls in Aspen Plus to evaluate how they affect the MFSP. Results from this analysis can help inform decisions about biorefinery siting and sizing, as well as mitigate the risks associated with air permitting.

Economic conditions, hypertension, and cardiovascular disease: analysis of the Icelandic economic collapse.

Science.gov (United States)

Birgisdóttir, Kristín Helga; Jónsson, Stefán Hrafn; Ásgeirsdóttir, Tinna Laufey

2017-12-01

Previous research has found a positive short-term relationship between the 2008 collapse and hypertension in Icelandic males. With Iceland's economy experiencing a phase of economic recovery, an opportunity to pursue a longer-term analysis of the collapse has emerged. Using data from a nationally representative sample, fixed-effect estimations and mediation analyses were performed to explore the relationship between the Icelandic economic collapse in 2008 and the longer-term impact on hypertension and cardiovascular health. A sensitivity analysis was carried out with pooled logit models estimated as well as an alternative dependent variable. Our attrition analysis revealed that results for cardiovascular diseases were affected by attrition, but not results from estimations on the relationship between the economic crisis and hypertension. When compared to the boom year 2007, our results point to an increased probability of Icelandic women having hypertension in the year 2012, when the Icelandic economy had recovered substantially from the economic collapse in 2008. This represents a deviation from pre-crisis trends, thus suggesting a true economic-recovery impact on hypertension.

Herding, social influence and economic decision-making: socio-psychological and neuroscientific analyses

OpenAIRE

Baddeley, Michelle

2010-01-01

Typically, modern economics has steered away from the analysis of sociological and psychological factors and has focused on narrow behavioural assumptions in which expectations are formed on the basis of mathematical algorithms. Blending together ideas from the social and behavioural sciences, this paper argues that the behavioural approach adopted in most economic analysis, in its neglect of sociological and psychological forces and its simplistically dichotomous categorization of behaviour ...

Scaling-up the Xpert MTB/RIF assay for the detection of tuberculosis and rifampicin resistance in India: An economic analysis

NARCIS (Netherlands)

Khaparde, Sunil; Raizada, Neeraj; Nair, Sreenivas Achuthan; Denkinger, Claudia; Sachdeva, Kuldeep Singh; Paramasivan, Chinnambedu Nainarappan; Salhotra, Virender Singh; Vassall, Anna; van 't Hoog, Anja

2017-01-01

India is considering the scale-up of the Xpert MTB/RIF assay for detection of tuberculosis (TB) and rifampicin resistance. We conducted an economic analysis to estimate the costs of different strategies of Xpert implementation in India. Using a decision analytical model, we compared four diagnostic

Analysis and Application of Quality Economics Based on Input-Output

Science.gov (United States)

Lu, Qiang; Li, Xin

2018-01-01

Quality economics analysis is an important research area in the current economic frontier, which has a huge role in promoting the quality-benefit type road development in China. Through the study of quality economics analysis and application, economics of quality and quality economics management are summarized, and theoretical framework of quality economics analysis is constructed. Finally, the quality economics analysis of aerospace equipment is taken as an example to carry on the application research.

Socio-Economic Environment as the Basis for Innovation Economy

Directory of Open Access Journals (Sweden)

Marina Akhmetova

2017-06-01

Full Text Available The authors carried out a correlation analysis of the socio-economic environment factors, which have a decisive influence on the territorial innovative development according to data for the year 2012. The paper discloses socio-economic determinants that provide to reinforce territory’s innovative development. These determinants are higher education development, improving of social and transport infrastructure, growth in small business and trade. The paper also carried out a dynamic analysis according to data for period of 2012 - 2014 in the group of regions (Russian Federation "Generators of Innovations" and disclosed the positive impact of selected key determinants on the regional innovative development. The results of this research may be used in the government practice of different territories (countries, regions for decision-making in the field of socio-economic development.

THE ROLE OF THE ECONOMIC JUSTIFICATION IN THE COLLECTIVE DISMISSAL PROCEDURE

Directory of Open Access Journals (Sweden)

Luiza Mihai

2016-11-01

Full Text Available Given that any collective dismissal process must begin from a decision of the competent corporate body, the paper analyzes the reasons leading to the issuance of such a decision of reorganization, which is the justification for technical and economic viability of that decision and what It must include to be thorough and legal in the context of a possible legal claim before the courts. We studied the role of the efficient and complex analysis of the company in terms of organizational and / or economic reasons but also the impact that the change in the company's structure will have by reducing the positions for which the activity will be considered redundant through the same analysis. Research aimed the position and the implications such an economic analysis will have on the entire collective dismissal procedures, procedures that are very precisely controlled by state institutions empowered by the phases imposed by law but also in agreement with the employer`s social partner. In a state that encourages commercial freedom and the exclusive organizational privilege of the employer, may the court censor the effects of this procedure analyzing itself the opportunity of reducing positions targeted by the reorganization caused by economic reasons, or may issue c onsiderations strictly in terms of reality and the seriousness of the causes that led to the adoption of such a decision of the employer?

Template-Directed Instrumentation Reduces Cost and Improves Efficiency for Total Knee Arthroplasty: An Economic Decision Analysis and Pilot Study.

Science.gov (United States)

McLawhorn, Alexander S; Carroll, Kaitlin M; Blevins, Jason L; DeNegre, Scott T; Mayman, David J; Jerabek, Seth A

2015-10-01

Template-directed instrumentation (TDI) for total knee arthroplasty (TKA) may streamline operating room (OR) workflow and reduce costs by preselecting implants and minimizing instrument tray burden. A decision model simulated the economics of TDI. Sensitivity analyses determined thresholds for model variables to ensure TDI success. A clinical pilot was reviewed. The accuracy of preoperative templates was validated, and 20 consecutive primary TKAs were performed using TDI. The model determined that preoperative component size estimation should be accurate to ±1 implant size for 50% of TKAs to implement TDI. The pilot showed that preoperative template accuracy exceeded 97%. There were statistically significant improvements in OR turnover time and in-room time for TDI compared to an historical cohort of TKAs. TDI reduces costs and improves OR efficiency. Copyright © 2015 Elsevier Inc. All rights reserved.

Decision analysis for the siting of nuclear power plants: the relevance of multiattribute utility theory

International Nuclear Information System (INIS)

Keeney, R.L; Nair, K.

1975-01-01

The necessity for improved decision making concerning the siting and licensing of major power facilities has been accelerated in the past decade by the increased environmental consciousness of the public and by the energy crisis. These problems are exceedingly complex due to their multiple objective nature, the many interest groups, the long-range time horizons, and the inherent uncertainties of the potential impacts of any decision. Along with the relatively objective economic and engineering concerns, clearly the more subjective factors involving safety, environmental, and social issues are crucial to the problem. Hence, the professional judgments and knowledge of experts in these areas should be utilized in analyses of siting decisions. Likewise, the preferences of the general public, as consumers, the utility companies, as builders and operators of power plant facilities, and environmentalists and the government must be accounted for in analyzing power plant siting and licensing issues. We advocate an approach for formally articulating the experts' judgments and the decision makers' preferences, both of which are clearly subjective, and processing these along with the more objective considerations in a logical manner to acquire the implications for decision making. The appropriateness and application of decision analysis for power plant location decisions is discussed and illustrated. Emphasis is placed on the assessment of the decision maker's preferences and tradeoffs concerning multiple objectives. (U.S.)

Variable precision rough set for multiple decision attribute analysis

Institute of Scientific and Technical Information of China (English)

Lai; Kin; Keung

2008-01-01

A variable precision rough set (VPRS) model is used to solve the multi-attribute decision analysis (MADA) problem with multiple conflicting decision attributes and multiple condition attributes. By introducing confidence measures and a β-reduct, the VPRS model can rationally solve the conflicting decision analysis problem with multiple decision attributes and multiple condition attributes. For illustration, a medical diagnosis example is utilized to show the feasibility of the VPRS model in solving the MADA...

Geocapacity: economic feasibility of CCS in networked systems

NARCIS (Netherlands)

Neele, F.; Hendriks, C.; Brandsma, R.

2009-01-01

A Decision Support System (DSS) has been developed to evaluate the technical and economical feasibility of CO2 storage in the subsurface. The DSS performs a detailed, stochastic analysis of the technical and economical aspects of a CCS project, which consists of any number of CO2 sources and sinks

Hydroeconomic analysis

DEFF Research Database (Denmark)

Bauer-Gottwein, Peter; Riegels, Niels; Pulido-Velazquez, Manuel

2017-01-01

Hydroeconomic analysis and modeling provides a consistent and quantitative framework to assess the links between water resources systems and economic activities related to water use, simultaneously modeling water supply and water demand. It supports water managers and decision makers in assessing...... trade-offs between different water uses, different geographic regions, and various economic sectors and between the present and the future. Hydroeconomic analysis provides consistent economic performance criteria for infrastructure development and institutional reform in water policies and management...... organizations. This chapter presents an introduction to hydroeconomic analysis and modeling, and reviews the state of the art in the field. We review available economic water-valuation techniques and summarize the main types of decision problems encountered in hydroeconomic analysis. Popular solution strategies...

Economic Analysis of Nuclear Energy

International Nuclear Information System (INIS)

Lee, Man Ki; Moon, K. H.; Kim, S. S.; Lim, C. Y.; Oh, K. B.

2006-12-01

It has been well recognized that securing economic viabilities along with technologies are very important elements in the successful implementation of nuclear R and D projects. The objective of the Project is to help nuclear energy to be utilized in an efficient way by analyzing major issues related with nuclear economics. The study covers following subjects: the role of nuclear in the future electric supply system, economic analysis of nuclear R and D project, contribution to the regional economy from nuclear power. In addition, the study introduces the international cooperation in the methodological area of efficient use of nuclear energy by surveying the international activities related with nuclear economics

Economic Analysis of Nuclear Energy

Energy Technology Data Exchange (ETDEWEB)

Lee, Man Ki; Moon, K. H.; Kim, S. S.; Lim, C. Y.; Oh, K. B

2006-12-15

It has been well recognized that securing economic viabilities along with technologies are very important elements in the successful implementation of nuclear R and D projects. The objective of the Project is to help nuclear energy to be utilized in an efficient way by analyzing major issues related with nuclear economics. The study covers following subjects: the role of nuclear in the future electric supply system, economic analysis of nuclear R and D project, contribution to the regional economy from nuclear power. In addition, the study introduces the international cooperation in the methodological area of efficient use of nuclear energy by surveying the international activities related with nuclear economics.

Decisions, decisions: analysis of age, cohort, and time of testing on framing of risky decision options.

Science.gov (United States)

Mayhorn, Christopher B; Fisk, Arthur D; Whittle, Justin D

2002-01-01

Decision making in uncertain environments is a daily challenge faced by adults of all ages. Framing decision options as either gains or losses is a common method of altering decision-making behavior. In the experiment reported here, benchmark decision-making data collected in the 1970s by Tversky and Kahneman (1981, 1988) were compared with data collected from current samples of young and older adults to determine whether behavior was consistent across time. Although differences did emerge between the benchmark and the present samples, the effect of framing on decision behavior was relatively stable. The present findings suggest that adults of all ages are susceptible to framing effects. Results also indicated that apparent age differences might be better explained by an analysis of cohort and time-of-testing effects. Actual or potential applications of this research include an understanding of how framing might influence the decision-making behavior of people of all ages in a number of applied contexts, such as product warning interactions and medical decision scenarios.

Securing public transportation systems an integrated decision analysis framework for the prevention of terrorist attacks as example

CERN Document Server

Brauner, Florian

2017-01-01

Florian Brauner addresses the risk reduction effects of security measures (SecMe) as well as economic and social effects using terrorist threats in public transportation as use case. SecMe increase the level of security but cause interferences and restrictions for customers (e.g. privacy). This study identifies the interferences and analyzes the acceptance with an empirical survey of customers. A composite indicator for the acceptance of different SecMe is developed and integrated into a risk management framework for multi-criteria decision analysis achieving the right balance of risk reduction, costs, and social acceptance. Contents Assessment of Security Measures for Risk Management Measurement of Objective Effectiveness of Security Measures Against Terrorist Attacks Determination of Subjective Effects of Security Measures (Customer Acceptance Analysis) Cost Analysis of Security Measures Multi-Criteria Decision Support Systems Target Groups Scientists with Interest in Civil Security Research Providers and S...

Role of pharmacoeconomic analysis in R&D decision making: when, where, how?

Science.gov (United States)

Miller, Paul

2005-01-01

Pharmacoeconomics is vitally important to drug manufacturers in terms of communicating to external decision-makers (payers, prescribers, patients) the value of their products, achieving regulatory and reimbursement approval and contributing to commercial success. Since development of new drugs is long, costly and risky, and decisions must be made how to allocate considerable research and development (R&D) resources, pharmacoeconomics also has an essential role informing internal decision-making (within a company) during drug development. The use of pharmacoeconomics in early development phases is likely to enhance the efficiency of R&D resource use and also provide a solid foundation for communicating product value to external decision-makers further downstream, increasing the likelihood of regulatory (reimbursement) approval and commercial success. This paper puts the case for use of pharmacoeconomic analyses earlier in the development process and outlines five techniques (clinical trial simulation [CTS], option pricing [OP], investment appraisal [IA], threshold analysis [TA] and value of information [VOI] analysis) that can provide useful input into the design of clinical development programmes, portfolio management and optimal pricing strategy. CTS can estimate efficacy and tolerability profiles before clinical data are available. OP can show the value of different clinical programme designs, sequencing of studies and stop decisions. IA can compare expected net present value (NPV) of different product profiles or study designs. TA can be used to understand development drug profile requirements given partial data. VOI can assist risk management by quantifying uncertainty and assessing the economic viability of gathering further information on the development drug. No amount of pharmacoeconomic data can make a bad drug good; what it can do is enhance the drug developers understanding of the characteristics of that drug. Decision-making, in light of this

Social and Economic Analysis Branch: integrating policy, social, economic, and natural science

Science.gov (United States)

Schuster, Rudy; Walters, Katie D.

2015-01-01

The Fort Collins Science Center's Social and Economic Analysis Branch provides unique capabilities in the U.S. Geological Survey by leading projects that integrate social, behavioral, economic, and natural science in the context of human–natural resource interactions. Our research provides scientific understanding and support for the management and conservation of our natural resources in support of multiple agency missions. We focus on meeting the scientific needs of the Department of the Interior natural resource management bureaus in addition to fostering partnerships with other Federal and State managers to protect, restore, and enhance our environment. The Social and Economic Analysis Branch has an interdisciplinary group of scientists whose primary functions are to conduct both theoretical and applied social science research, provide technical assistance, and offer training to support the development of skills in natural resource management activities. Management and research issues associated with human-resource interactions typically occur in a unique context and require knowledge of both natural and social sciences, along with the skill to integrate multiple science disciplines. In response to these challenging contexts, Social and Economic Analysis Branch researchers apply a wide variety of social science concepts and methods which complement our rangeland/agricultural, wildlife, ecology, and biology capabilities. The goal of the Social and Economic Analysis Branch's research is to enhance natural-resource management, agency functions, policies, and decisionmaking.

Assessment of validation of health-economics decision models in intervention studies of seasonal influenza and breast cancer

NARCIS (Netherlands)

De Boer, P.T.; Frederix, G.W.; Al, M.J.; Feenstra, T.F.; Vemer, P.

2015-01-01

Objectives: We aimed to review recently published health-economic (HE) decision models to assess the reporting of validation efforts. An infectious disease (seasonal influenza, SI) and a chronic disease (breast cancer, BC) were used as examples, giving a preliminary insight in the reporting of

The economic value of drought information: Application to water resources management decisions in Spain

Science.gov (United States)

Garrote, Luis; Sordo, Alvaro; Iglesias, Ana

2016-04-01

Information is valuable when it improves decision-making (e.g., actions can be adjusted to better suit the situation at hand) and enables the mitigation of damage. However, quantifying the value of information is often difficult. Here we explore a general approach to understand the economic value of drought information for water managers framing our approach in the precautionary principle that reminds us that uncertainty is not a reason to postpone or avoid action. We explore how decision making can disregard uncertain effects, taking a short-term approach and focusing instead on the certain costs and benefits of taking action. Two main questions arise: How do we know that advanced drought information is actually helping decisions?; and What is the value of information in the decision process? The approach is applied to several regulated water resources systems in Spain. It first views drought information as a factor in the decision process which can be used by water managers to reduce uncertainty. Second, the value of drought information is the expected gain in a decision outcome (utility) from using additional information. Finally, the gains of improved information are compared with the information collection costs. Here we estimate the value by taking into account the accuracy of the drought information, the subjective probabilities about the value, analyzed as Bayesian probabilities, and the ability or skill of the stakeholders to apply the drought information to modify their actions. Since information may be considered a public good (non-rivalry and non-excludability), it may justify public policy in the provision of information, considering social costs and benefits. The application of the framework to the Spanish case studies shows that information benefits exceeds to costs when drought frequency is 20-40% above normal values; below these values uncertainty in the decisions dominate the results; above these values, the management decisions are limited even

Analysis of Economical and Environmental Costs for the Selection of Municipal Solid Waste Treatment and Disposal Scenarios through Multicriteria Analysis (ELECTRE Method

Directory of Open Access Journals (Sweden)

Lorena De Medina-Salas

2017-10-01

Full Text Available Decision-making for the selection of treatment alternatives and landfilling of municipal solid waste (MSW is based on the experience and judgment of those management responsible, without considering multicriteria analysis. Therefore, the purpose of this research was to determine the treatment scenario and landfilling of MSW with the lowest environmental and economic costs in a medium-sized city. The methodology included the definition and data processing of the project (population, generation, and composition of MSW, for 16 years. In the design of scenarios, recycling, composting, incineration with energy recovery, and landfilling treatments were proposed; later, the combinations of treatments for each type of residue were generated. The results showed 36 scenarios, then the ELECTRE method was applied to the five with the lowest economical and environmental costs. Finally from the latter, one dominant scenario was determined: organic waste in composting; plastic, paper, and glass in recycling; and ‘others’ in landfilling. It is concluded that the final decision on the scenario is adapted to the particular conditions of the locality.

Fuzzy rationality and parameter elicitation in decision analysis

Science.gov (United States)

Nikolova, Natalia D.; Tenekedjiev, Kiril I.

2010-07-01

It is widely recognised by decision analysts that real decision-makers always make estimates in an interval form. An overview of techniques to find an optimal alternative among such with imprecise and interval probabilities is presented. Scalarisation methods are outlined as most appropriate. A proper continuation of such techniques is fuzzy rational (FR) decision analysis. A detailed representation of the elicitation process influenced by fuzzy rationality is given. The interval character of probabilities leads to the introduction of ribbon functions, whose general form and special cases are compared with the p-boxes. As demonstrated, approximation of utilities in FR decision analysis does not depend on the probabilities, but the approximation of probabilities is dependent on preferences.

Genetic testing in the European Union: does economic evaluation matter?

Science.gov (United States)

Antoñanzas, Fernando; Rodríguez-Ibeas, R; Hutter, M F; Lorente, R; Juárez, C; Pinillos, M

2012-10-01

We review the published economic evaluation studies applied to genetic technologies in the EU to know the main diseases addressed by these studies, the ways the studies were conducted and to assess the efficiency of these new technologies. The final aim of this review was to understand the possibilities of the economic evaluations performed up to date as a tool to contribute to decision making in this area. We have reviewed a set of articles found in several databases until March 2010. Literature searches were made in the following databases: PubMed; Euronheed; Centre for Reviews and Dissemination of the University of York-Health Technology Assessment, Database of Abstracts of Reviews of Effects, NHS Economic Evaluation Database; and Scopus. The algorithm was "(screening or diagnosis) and genetic and (cost or economic) and (country EU27)". We included studies if they met the following criteria: (1) a genetic technology was analysed; (2) human DNA must be tested for; (3) the analysis was a real economic evaluation or a cost study, and (4) the articles had to be related to any EU Member State. We initially found 3,559 papers on genetic testing but only 92 articles of economic analysis referred to a wide range of genetic diseases matched the inclusion criteria. The most studied diseases were as follows: cystic fibrosis (12), breast and ovarian cancer (8), hereditary hemochromatosis (6), Down's syndrome (7), colorectal cancer (5), familial hypercholesterolaemia (5), prostate cancer (4), and thrombophilia (4). Genetic tests were mostly used for screening purposes, and cost-effectiveness analysis is the most common type of economic study. The analysed gene technologies are deemed to be efficient for some specific population groups and screening algorithms according to the values of their cost-effectiveness ratios that were below the commonly accepted threshold of 30,000€. Economic evaluation of genetic technologies matters but the number of published studies is still

Decision analysis and rational countermeasures in radiation protection

International Nuclear Information System (INIS)

Sinkko, K.

1991-09-01

During the past few years several international organizations (ICRP, IAEA, OECD/NEA), in revising their radiation protection principles, have emphasized the importance of the rationalization and planning of intervention after a nuclear accident. An accident itself and the introduction of protective action entails risks to the people affected, monetary costs and social disruption. Thus protective actions, often including objectives which are difficult to control simultaneously, cannot be undertaken without careful contemplation and consideration of the essential consequences of decisions. Often during an accident there is not enough time for careful consideration. Decision analysis is an analyzing and thought guiding method for the definition of objectives and comparison of options. It is an appropriate methodology assisting in rendering explicit and apparent all factors involved and evaluating their relative importance. The planning of intervention with the help of decision analysis is portion of the preparation for accident situations. In this report one of the techniques of decision analysis, multi-attribute utility analysis, is presented, as concerns its application in planning protective actions in the event of radiation accidents. (orig.)

Economics and the question of low-grade heat

International Nuclear Information System (INIS)

Gorbet, F.W.

1976-01-01

This paper examines, from the viewpoint of an economist, the issues involved in the increased waste heat production generated by the rapid acceleration of electrical production and nuclear generation. It reviews some of the literature on low-grade heat - its economic considerations and ecological impact - and examines the applicability of the traditional type of analytical decision tool (cost/benefit analysis) to the efficient design of heat rejection systems. It is recognized that decisions should be made on the basis of social costs and benefits as well as purely monetary considerations. The validity and shortcomings of cost/benefit analysis are presented. It is concluded that, for energy policy planning and waste heat management, economic feasibility studies should lay out the options together with the costs and risks. (author)

Is family planning an economic decision?

Science.gov (United States)

Wunderink, S R

1995-09-01

This study examines economic models of household choice and the role of economic factors in determining the timing of births. A static economic model is presented and tested with data from the Netherlands. After the availability of contraceptives, the family size variable shifted from being an exogenous to an endogenous one, because births could be regulated. Costs of childbearing were construed to have maintenance costs for parents and society, attendance costs of care, and intangible costs such as anxiety or personal freedom. Benefits were intangible ones, such as joy and happiness; income; public benefits; and attendance benefits. Intangible benefits enlarged the utility of children, but maintenance costs diminished resources available for consumption. Child quality was a product of market goods purchased by parents and others and household labor. Household time allocation varied with child's age. Private responsibility for children varied by country. Quality of child care varied between countries and over time. Quality was dependent upon economies of scale, variable costs by the age of the child, variable time commitments by age of the child, and market substitutes for private child care. Higher income families spent more money but less time on children. It is pointed out that Becker's model explained number of children, but not timing of births. Postponement of birth was unlikely for those with a limited education, an unpleasant job, and low wages. When the advantages and disadvantages of having a baby were positive, spouses or single women with a high subjective preference were expected to bear a child as soon as possible. Government policy can affect the average family size by increasing or decreasing the financial and/or time burden of children. Postponement may be chosen based on long term analysis of a couple's future, the formation and use of capital, and/or high subjective time preference. Before and after first birth are different frames of reference

Can we do better? Economic analysis of human resource investment to improve home care service for the elderly in Serbia.

Science.gov (United States)

Mihic, Marko M; Todorovic, Marija Lj; Obradovic, Vladimir Lj; Mitrovic, Zorica M

2016-01-01

Social services aimed at the elderly are facing great challenges caused by progressive aging of the global population but also by the constant pressure to spend funds in a rational manner. This paper focuses on analyzing the investments into human resources aimed at enhancing home care for the elderly since many countries have recorded progress in the area over the past years. The goal of this paper is to stress the significance of performing an economic analysis of the investment. This paper combines statistical analysis methods such as correlation and regression analysis, methods of economic analysis, and scenario method. The economic analysis of investing in human resources for home care service in Serbia showed that the both scenarios of investing in either additional home care hours or more beneficiaries are cost-efficient. However, the optimal solution with the positive (and the highest) value of economic net present value criterion is to invest in human resources to boost the number of home care hours from 6 to 8 hours per week and increase the number of the beneficiaries to 33%. This paper shows how the statistical and economic analysis results can be used to evaluate different scenarios and enable quality decision-making based on exact data in order to improve health and quality of life of the elderly and spend funds in a rational manner.

Income taxes, public fiscal policy and economic growth

Directory of Open Access Journals (Sweden)

Tomasz Wołowiec

2014-12-01

Full Text Available The main goal of this article is to find the relationship between public fiscal policy and economic growth. The article consist of a few parts. The first is an introduction, which creates the background for the analysis in the following sections. It shows the main point of view on public fiscal policy especially in the case of personal income tax and creates a framework for the analysis of the relationship between taxation and economic growth. The second part focuses on the relations between central government decisions on taxation and its influence on savings, investments and economic growth. In this part we will find selected analyses of the impact of taxes on economic growth based on the examples of OECD countries. Finally, the last part of the work is a study on fiscal level and tax system structures and economic growth. In this part the authors checks two points of view on taxation. The first is that a low level tax burden is conducive to economic growth, and the second emphasizes negative consequences of decreasing budget tax revenues. The article shows both theoretical and empirical points of view on taxation and influence of government taxation decisions on the economy.

Mindfulness training increases cooperative decision making in economic exchanges: Evidence from fMRI.

Science.gov (United States)

Kirk, Ulrich; Gu, Xiaosi; Sharp, Carla; Hula, Andreas; Fonagy, Peter; Montague, P Read

2016-09-01

Emotions have been shown to exert influences on decision making during economic exchanges. Here we investigate the underlying neural mechanisms of a training regimen which is hypothesized to promote emotional awareness, specifically mindfulness training (MT). We test the hypothesis that MT increases cooperative economic decision making using fMRI in a randomized longitudinal design involving 8weeks of either MT or active control training (CT). We find that MT results in an increased willingness to cooperate indexed by higher acceptance rates to unfair monetary offers in the Ultimatum Game. While controlling for acceptance rates of monetary offers between intervention groups, subjects in the MT and CT groups show differential brain activation patterns. Specifically, a subset of more cooperative MT subjects displays increased activation in the septal region, an area linked to social attachment, which may drive the increased willingness to express cooperative behavior in the MT cohort. Furthermore, MT resulted in attenuated activity in anterior insula compared with the CT group in response to unfair monetary offers post-training, which may suggest that MT enables greater ability to effectively regulate the anterior insula and thereby promotes social cooperation. Finally, functional connectivity analyses show a coupling between the septal region and posterior insula in the MT group, suggesting an integration of interoceptive inputs. Together, these results highlight that MT may be employed in contexts where emotional regulation is required to promote social cooperation. Copyright © 2016 Elsevier Inc. All rights reserved.

Portfolio theory and the alternative decision rule of cost-effectiveness analysis: theoretical and practical considerations.

Science.gov (United States)

Sendi, Pedram; Al, Maiwenn J; Gafni, Amiram; Birch, Stephen

2004-05-01

Bridges and Terris (Soc. Sci. Med. (2004)) critique our paper on the alternative decision rule of economic evaluation in the presence of uncertainty and constrained resources within the context of a portfolio of health care programs (Sendi et al. Soc. Sci. Med. 57 (2003) 2207). They argue that by not adopting a formal portfolio theory approach we overlook the optimal solution. We show that these arguments stem from a fundamental misunderstanding of the alternative decision rule of economic evaluation. In particular, the portfolio theory approach advocated by Bridges and Terris is based on the same theoretical assumptions that the alternative decision rule set out to relax. Moreover, Bridges and Terris acknowledge that the proposed portfolio theory approach may not identify the optimal solution to resource allocation problems. Hence, it provides neither theoretical nor practical improvements to the proposed alternative decision rule.

On the economic analysis of problems in energy efficiency: Market barriers, market failures, and policy implications

International Nuclear Information System (INIS)

Sanstad, A.H.; Koomey, J.G.; Levine, M.D.

1993-01-01

In his recent paper in The Energy Journal, Ronald Sutherland argues that several so-called ''market barriers'' to energy efficiency frequently cited in the literature are not market failures in the conventional sense and are thus irrelevant for energy policy. We argue that Sutherland has inadequately analyzed the idea of market barrier and misrepresented the policy implications of microeconomics. We find that economic theory, correctly interpreted, does not provide for the categorical dismissal of market barriers. We explore important methodological issues underlying the debate over market barriers, and discuss the importance of reconciling the findings of non-economic social sciences with the economic analysis of energy demand and consumer decision-making. We also scrutinize Sutherland's attempt to apply finance theory to rationalize high implicit discount rates observed in energy-related choices, and find this use of finance theory to be inappropriate

On the economic analysis of problems in energy efficiency: Market barriers, market failures, and policy implications

Energy Technology Data Exchange (ETDEWEB)

Sanstad, A.H.; Koomey, J.G.; Levine, M.D.

1993-01-01

In his recent paper in The Energy Journal, Ronald Sutherland argues that several so-called ``market barriers`` to energy efficiency frequently cited in the literature are not market failures in the conventional sense and are thus irrelevant for energy policy. We argue that Sutherland has inadequately analyzed the idea of market barrier and misrepresented the policy implications of microeconomics. We find that economic theory, correctly interpreted, does not provide for the categorical dismissal of market barriers. We explore important methodological issues underlying the debate over market barriers, and discuss the importance of reconciling the findings of non-economic social sciences with the economic analysis of energy demand and consumer decision-making. We also scrutinize Sutherland`s attempt to apply finance theory to rationalize high implicit discount rates observed in energy-related choices, and find this use of finance theory to be inappropriate.

The Contribution of J.M. Keynes to the Analysis of the Psychological Motives of Economic Behavior

Directory of Open Access Journals (Sweden)

Maria A. Kozlova

2016-01-01

Full Text Available The article examines the contribution of John Maynard Keynes to the study of the psychological motives of economic behavior. The origins of the analysis of the psychological motives in economics before Keynes are reviewed. The relative importance of rational and irrational motives of economic behavior in the Keynesian theory is analyzed. It is shown that Keynes's analysis of the behavior of the economic agents under uncertainty and the lack of information contributed to the elaboration of the bounded rationality theory by Simon. The article also describes the input of Keynes to the formation of a new «Keynesian» model of human behavior, which implies the importance of expectations, taking into account the psychological and social factors of economic behavior. The main psychological tendencies in the actions of the consumers and investors described by Keynes (the basic psychological law, liquidity preference, the influence of the «market psychology» on the investor's decisions and their relevance nowadays are examined. The article shows further development of the ideas of Keynes in the Akerlof and Shiller's theory of animal spirits and in the financial instability hypothesis of Minsky. It also gives a description of a confidence multiplier, introduced by Akerlof and Shiller, and shows how the cosumers' confidence can be measured nowadays. Besides, the article stresses that the study of the psychological motives of economic behavior, undertaken by Keynes, contributed to the development of such new disciplines at the interface between the economy and psychology as the economic psychology and behavioral economics.

Accelerating policy decisions to adopt haemophilus influenzae type B vaccine: a global, multivariable analysis.

Science.gov (United States)

Shearer, Jessica C; Stack, Meghan L; Richmond, Marcie R; Bear, Allyson P; Hajjeh, Rana A; Bishai, David M

2010-03-16

Adoption of new and underutilized vaccines by national immunization programs is an essential step towards reducing child mortality. Policy decisions to adopt new vaccines in high mortality countries often lag behind decisions in high-income countries. Using the case of Haemophilus influenzae type b (Hib) vaccine, this paper endeavors to explain these delays through the analysis of country-level economic, epidemiological, programmatic and policy-related factors, as well as the role of the Global Alliance for Vaccines and Immunisation (GAVI Alliance). Data for 147 countries from 1990 to 2007 were analyzed in accelerated failure time models to identify factors that are associated with the time to decision to adopt Hib vaccine. In multivariable models that control for Gross National Income, region, and burden of Hib disease, the receipt of GAVI support speeded the time to decision by a factor of 0.37 (95% CI 0.18-0.76), or 63%. The presence of two or more neighboring country adopters accelerated decisions to adopt by a factor of 0.50 (95% CI 0.33-0.75). For each 1% increase in vaccine price, decisions to adopt are delayed by a factor of 1.02 (95% CI 1.00-1.04). Global recommendations and local studies were not associated with time to decision. This study substantiates previous findings related to vaccine price and presents new evidence to suggest that GAVI eligibility is associated with accelerated decisions to adopt Hib vaccine. The influence of neighboring country decisions was also highly significant, suggesting that approaches to support the adoption of new vaccines should consider supply- and demand-side factors.

INDICATOR SYSTEM FOR MEASUREMENT OF FINANCIAL AND ECONOMIC ACTIVITIES IN PUBLIC INSTITUTIONS

Directory of Open Access Journals (Sweden)

Valeriy Dudnyk

2015-11-01

Full Text Available The object of the work is study of methods for analyzing the current financial and economic performance of a company as well as the usage of existing methods for the assessment of the company in the current and future periods. Analysis of financial and economic performance provides not only assessment of the current situation of a company, but a projection of its future behavior. Thus, the results can be used for planning and prediction. Different ways of handling of economic information are currently used in activity analysis to study the factors influencing the performance of a company and to account its reserves. An objective assessment of the financial and economic situation of the modern enterprise is the crucial part of justified decision-making. It forms the basis for determining the development strategy and acts as one of the key indicators for investors and creditors. Tracking and evaluating the effectiveness of a company requires above all comprehensive assessment of its financial and economic activities, monitoring the implementation of decisions, and identification of reserves for improvement. The process of activity analysis requires generalization of models which allow using their results both as a guide for future development of the economic system as well as a base for comparison and evaluation of the present state of the company. This enables justified decision making in particular situations and clarifies usage of existing methods for assessment of the company in the current and future periods. Results. Financial and economic activities of a company require comprehensive analysis, which may be carried out in the following steps: formulating and analyzing business objectives of the company, forming the information basis, constructing a comparison table, analyzing the data, producing a comprehensive rating score of the financial and economic situation of the company. Comprehensive rating score should take into account all

Integrating technical analysis and public values in risk-based decision making

International Nuclear Information System (INIS)

Bohnenblust, Hans; Slovic, Paul

1998-01-01

Simple technical analysis cannot capture the complex scope of preferences or values of society and individuals. However, decision making needs to be sustained by formal analysis. The paper describes a policy framework which incorporates both technical analysis and aspects of public values. The framework can be used as a decision supporting tool and helps decision makers to make more informed and more transparent decisions about safety issues

ANALYSIS AND PARTICULARITIES OF EXTERNAL FACTORS IMPACT ON ECONOMICAL RESULTS OF STRATEGIC OBJECTS PLANNING DEVELOPMENT

Directory of Open Access Journals (Sweden)

V. V. Gromov

2015-01-01

Full Text Available Summary. The relevance of the scientific problem described in the article are: to determine changes in economic performance, the effectiveness of the sectoral components of the service sector from the effects of environmental factors, which allows them to reach the planned long-term economic performance; management decision-making about structural and organizational changes, implementation of investment projects in the renovation and modernization of fixed capital, the creation of technology, process and product innovations directly connected with the impact analysis of such external factors as economic, socio-cultural, legal, political, innovative. The structure of the article is formed on the basis of presentation of the impact of specific groups of environmental factors on the competitiveness and economic performance of industry components of services based on the technology of strategic planning; complience of logical sequence of presentation of materials, establishing a causal relationship, the interaction of factors and elements of studied problems and objects. Features of external factors impact on the effectiveness of macro-economic entities, sectoral components of services are to the adequacy of the measures and strategies to counter the negative impact on the economic development of the objects of strategic development. Features of status changes and influence of internal factors on local and sectoral socio-economic systems dictate the need for a part of the available resources, the level of efficiency of the use of labor resources, fixed and current assets. The contribution of the author in a scientific perspective of this topic is to carry out a comprehensive analysis of the impact of the main groups of external factors on economic activities of the service sector development; identifying features of internal factors impact on the economic and innovative development of strategic planning objects.

A conceptual framework for economic optimization of single hazard surveillance in livestock production chains.

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Guo, Xuezhen; Claassen, G D H; Oude Lansink, A G J M; Saatkamp, H W

2014-06-01

Economic analysis of hazard surveillance in livestock production chains is essential for surveillance organizations (such as food safety authorities) when making scientifically based decisions on optimization of resource allocation. To enable this, quantitative decision support tools are required at two levels of analysis: (1) single-hazard surveillance system and (2) surveillance portfolio. This paper addresses the first level by presenting a conceptual approach for the economic analysis of single-hazard surveillance systems. The concept includes objective and subjective aspects of single-hazard surveillance system analysis: (1) a simulation part to derive an efficient set of surveillance setups based on the technical surveillance performance parameters (TSPPs) and the corresponding surveillance costs, i.e., objective analysis, and (2) a multi-criteria decision making model to evaluate the impacts of the hazard surveillance, i.e., subjective analysis. The conceptual approach was checked for (1) conceptual validity and (2) data validity. Issues regarding the practical use of the approach, particularly the data requirement, were discussed. We concluded that the conceptual approach is scientifically credible for economic analysis of single-hazard surveillance systems and that the practicability of the approach depends on data availability. Copyright © 2014 Elsevier B.V. All rights reserved.

Benefit-Risk Analysis for Decision-Making: An Approach.

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Raju, G K; Gurumurthi, K; Domike, R

2016-12-01

The analysis of benefit and risk is an important aspect of decision-making throughout the drug lifecycle. In this work, the use of a benefit-risk analysis approach to support decision-making was explored. The proposed approach builds on the qualitative US Food and Drug Administration (FDA) approach to include a more explicit analysis based on international standards and guidance that enables aggregation and comparison of benefit and risk on a common basis and a lifecycle focus. The approach is demonstrated on six decisions over the lifecycle (e.g., accelerated approval, withdrawal, and traditional approval) using two case studies: natalizumab for multiple sclerosis (MS) and bedaquiline for multidrug-resistant tuberculosis (MDR-TB). © 2016 American Society for Clinical Pharmacology and Therapeutics.

A conceptual approach for a quantitative economic analysis of farmers’ decision-making regarding animal welfare

NARCIS (Netherlands)

Gocsik, E.; Saatkamp, H.W.; Lauwere, de C.C.; Oude Lansink, A.G.J.M.

2014-01-01

Decisions related to animal welfare (AW) standards depend on farmer’s multiple goals and values and are constrained by a wide range of external and internal forces. The aim of this paper is twofold, i.e., (1) to develop a theoretical framework for farmers’ AW decisions that incorporates farmers’

Agricultural climate impacts assessment for economic modeling and decision support

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Thomson, A. M.; Izaurralde, R. C.; Beach, R.; Zhang, X.; Zhao, K.; Monier, E.

2013-12-01

A range of approaches can be used in the application of climate change projections to agricultural impacts assessment. Climate projections can be used directly to drive crop models, which in turn can be used to provide inputs for agricultural economic or integrated assessment models. These model applications, and the transfer of information between models, must be guided by the state of the science. But the methodology must also account for the specific needs of stakeholders and the intended use of model results beyond pure scientific inquiry, including meeting the requirements of agencies responsible for designing and assessing policies, programs, and regulations. Here we present methodology and results of two climate impacts studies that applied climate model projections from CMIP3 and from the EPA Climate Impacts and Risk Analysis (CIRA) project in a crop model (EPIC - Environmental Policy Indicator Climate) in order to generate estimates of changes in crop productivity for use in an agricultural economic model for the United States (FASOM - Forest and Agricultural Sector Optimization Model). The FASOM model is a forward-looking dynamic model of the US forest and agricultural sector used to assess market responses to changing productivity of alternative land uses. The first study, focused on climate change impacts on the UDSA crop insurance program, was designed to use available daily climate projections from the CMIP3 archive. The decision to focus on daily data for this application limited the climate model and time period selection significantly; however for the intended purpose of assessing impacts on crop insurance payments, consideration of extreme event frequency was critical for assessing periodic crop failures. In a second, coordinated impacts study designed to assess the relative difference in climate impacts under a no-mitigation policy and different future climate mitigation scenarios, the stakeholder specifically requested an assessment of a

Advancing School-Based Interventions through Economic Analysis

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Olsson, Tina M.; Ferrer-Wreder, Laura; Eninger, Lilianne

2014-01-01

Commentators interested in school-based prevention programs point to the importance of economic issues for the future of prevention efforts. Many of the processes and aims of prevention science are dependent upon prevention resources. Although economic analysis is an essential tool for assessing resource use, the attention given economic analysis…

Techno-economic analysis and decision making for PHEV benefits to society, consumers, policymakers and automakers

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Al-Alawi, Baha Mohammed

Plug-in hybrid electric vehicles (PHEVs) are an emerging automotive technology that has the capability to reduce transportation environmental impacts, but at an increased production cost. PHEVs can draw and store energy from an electric grid and consequently show reductions in petroleum consumption, air emissions, ownership costs, and regulation compliance costs, and various other externalities. Decision makers in the policy, consumer, and industry spheres would like to understand the impact of HEV and PHEV technologies on the U.S. vehicle fleets, but to date, only the disciplinary characteristics of PHEVs been considered. The multidisciplinary tradeoffs between vehicle energy sources, policy requirements, market conditions, consumer preferences and technology improvements are not well understood. For example, the results of recent studies have posited the importance of PHEVs to the future US vehicle fleet. No studies have considered the value of PHEVs to automakers and policy makers as a tool for achieving US corporate average fuel economy (CAFE) standards which are planned to double by 2030. Previous studies have demonstrated the cost and benefit of PHEVs but there is no study that comprehensively accounts for the cost and benefits of PHEV to consumers. The diffusion rate of hybrid electric vehicle (HEV) and PHEV technology into the marketplace has been estimated by existing studies using various tools and scenarios, but results show wide variations between studies. There is no comprehensive modeling study that combines policy, consumers, society and automakers in the U.S. new vehicle sales cost and benefits analysis. The aim of this research is to build a potential framework that can simulate and optimize the benefits of PHEVs for a multiplicity of stakeholders. This dissertation describes the results of modeling that integrates the effects of PHEV market penetration on policy, consumer and economic spheres. A model of fleet fuel economy and CAFE compliance for

Altered economic decision-making in abstinent heroin addicts: Evidence from the ultimatum game.

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Hou, Yu; Zhao, Liyan; Yao, Qi; Ding, Lixiang

2016-08-03

The development and persistence of drug addiction has been suggested to involve decision-making deficits. The Ultimatum Game is a widely used economic decision-making paradigm that illustrates the tension between financial self-interest and fairness motives. The behavior of responders in the Ultimatum Game has been associated with emotional reactions and cognitive control abilities, both of which are dysregulated in drug addicts. In this study, we investigated whether this economic decision-making process that involves considerations of social norms is affected by heroin addiction. Heroin addicts (n=17) and demographically matched healthy control subjects (n=18) were recruited to play the part of responders in the Ultimatum Game, during which they decided to accept or reject the monetary offers proposed by strangers. The offers were manipulated by varying the stake sizes and fairness scales. The rejection rates of all of the offer categories, response times, fairness judgments, and impulsivity were compared between heroin addicts and healthy controls. Compared with healthy subjects, the rejection rates of most unfair offers in the Ultimatum Game were significantly higher under low-offer-size conditions among heroin addicts. In contrast, the most unfair offers were more likely to be accepted by heroin addicts in the high-offer-size condition than by healthy subjects. The ratings of unfairness were equal in both conditions although the rejection rates were different. Heroin addicts had higher scores on BIS attentional/cognitive impulsivity and non-planning impulsivity, but not in motor impulsivity. Rejection rates to most unfair offers under low-offer-size conditions significantly correlated with score on BIS non-planning impulsivity and total score of impulsivity. Heroin addicts differentially responded under different stake-level conditions in the Ultimatum Game, with emotional impulses in low-offer-size conditions and selfish motives in the face of high monetary

Economic impact and market analysis of a special event: The Great New England Air Show

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Rodney B. Warnick; David C. Bojanic; Atul Sheel; Apurv Mather; Deepak Ninan

2010-01-01

We conducted a post-event evaluation for the Great New England Air Show to assess its general economic impact and to refine economic estimates where possible. In addition to the standard economic impact variables, we examined travel distance, purchase decision involvement, event satisfaction, and frequency of attendance. Graphic mapping of event visitors' home ZIP...

DECISION ANALYSIS OF INCINERATION COSTS IN SUPERFUND SITE REMEDIATION

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This study examines the decision-making process of the remedial design (RD) phase of on-site incineration projects conducted at Superfund sites. Decisions made during RD affect the cost and schedule of remedial action (RA). Decision analysis techniques are used to determine the...

Overcoming barriers to integrating economic analysis into risk assessment.

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Hoffmann, Sandra

2011-09-01

Regulatory risk analysis is designed to provide decisionmakers with a clearer understanding of how policies are likely to affect risk. The systems that produce risk are biological, physical, and social and economic. As a result, risk analysis is an inherently interdisciplinary task. Yet in practice, risk analysis has been interdisciplinary in only limited ways. Risk analysis could provide more accurate assessments of risk if there were better integration of economics and other social sciences into risk assessment itself. This essay examines how discussions about risk analysis policy have influenced the roles of various disciplines in risk analysis. It explores ways in which integrated bio/physical-economic modeling could contribute to more accurate assessments of risk. It reviews examples of the kind of integrated economics-bio/physical modeling that could be used to enhance risk assessment. The essay ends with a discussion of institutional barriers to greater integration of economic modeling into risk assessment and provides suggestions on how these might be overcome. © 2011 Society for Risk Analysis.