Multiscale decision-making, also referred to as multiscale decision theory (MSDT), is an approach in

operations research Operations research ( en-GB, operational research) (U.S. Air Force Specialty Code: Operations Analysis), often shortened to the initialism OR, is a discipline that deals with the development and application of analytical methods to improve deci ...

that combines

game theory Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appli ...

multi-agent A multi-agent system (MAS or "self-organized system") is a computerized system composed of multiple interacting intelligent agents.Hu, J.; Bhowmick, P.; Jang, I.; Arvin, F.; Lanzon, A.,A Decentralized Cluster Formation Containment Framework fo ...

influence diagram Influence or influencer may refer to: *Social influence, in social psychology, influence in interpersonal relationships **Minority influence, when the minority affect the behavior or beliefs of the majority *Influencer marketing, through individu ...

s, in particular

dependency graph In mathematics, computer science and digital electronics, a dependency graph is a directed graph representing dependencies of several objects towards each other. It is possible to derive an evaluation order or the absence of an evaluation order th ...

s, and Markov decision processes to solve multiscale challengesMultiscale Mathematics Initiative: A Roadmap
/ref> in

sociotechnical system Sociotechnical systems (STS) in organizational development is an approach to complex organizational work design that recognizes the interaction between people and technology in workplaces. The term also refer to coherent systems of human relation ...

s. MSDT considers interdependencies within and between the following scales: system level, time and information. Multiscale decision theory builds upon

decision theory Decision theory (or the theory of choice; not to be confused with choice theory) is a branch of applied probability theory concerned with the theory of making decisions based on assigning probabilities to various factors and assigning numerical ...

and

multiscale mathematics Multiscale modeling or multiscale mathematics is the field of solving problems which have important features at multiple scales of time and/or space. Important problems include multiscale modeling of fluids, solids, polymers, proteins, nucleic ac ...

. Multiscale decision theory can model and analyze complex

decision-making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the Cognition, cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be ...

networks Network, networking and networked may refer to: Science and technology * Network theory, the study of graphs as a representation of relations between discrete objects * Network science, an academic field that studies complex networks Mathematics ...

that exhibit multiscale phenomena. The theory's results can be used by

mechanism design Mechanism design is a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally. Because it starts a ...

ers and decision-makers in organizations and

complex system A complex system is a system composed of many components which may interact with each other. Examples of complex systems are Earth's global climate, organisms, the human brain, infrastructure such as power grid, transportation or communication ...

s to improve system performance and decision quality. Multiscale decision theory has been applied to manufacturing enterprise enterprises,

service system A service system (or customer service system, CSS) is a configuration of technology and organizational networks designed to deliver services that satisfy the needs, wants, or aspirations of customers. "Service system" is a term used in the servi ...

supply chain management In commerce, supply chain management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and stor ...

healthcare Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health profe ...

,Zhang, H., Wernz, C., Slonim A.D. (2015) Aligning Incentives in Health Care: A Multiscale Decision Theory Approach. EURO Journal on Decision Processes (in press).
/ref>

systems engineering Systems engineering is an interdisciplinary field of engineering and engineering management that focuses on how to design, integrate, and manage complex systems over their enterprise life cycle, life cycles. At its core, systems engineering util ...

,NSF Award #1549896, EAGER: Advancing the Foundations of Systems Engineering through Multiscale Decision Theory
/ref> among others. In

, for example, MSDT has been used to identify multi-level incentives that can improve

value (quality of outcomes per dollar spent). Th
Multiscale Decision Making Laboratory
at

Virginia Tech Virginia Tech (formally the Virginia Polytechnic Institute and State University and informally VT, or VPI) is a Public university, public Land-grant college, land-grant research university with its main campus in Blacksburg, Virginia. It also ...

directed by Dr. Christian Wernz is working at the forefront of MSDT theory and applications. Multiscale decision theory is related to: *

Multiscale modeling Multiscale modeling or multiscale mathematics is the field of solving problems which have important features at multiple scales of time and/or space. Important problems include multiscale modeling of fluids, solids, polymers, proteins, nucleic ac ...

Decision analysis Decision analysis (DA) is the discipline comprising the philosophy, methodology, and professional practice necessary to address important decisions in a formal manner. Decision analysis includes many procedures, methods, and tools for identifying, ...

Cooperative distributed problem solving In computing cooperative distributed problem solving is a network of semi-autonomous processing nodes working together to solve a problem, typically in a multi-agent system. That is concerned with the investigation of problem subdivision, sub-prob ...

Decentralized decision making {{no footnotes, date=June 2016 Decentralized decision-making is any process where the decision-making authority is distributed throughout a larger group. It also connotes a higher authority given to lower level functionaries, executives, and workers ...

References

Bibliography

* Filar, J., Vrieze, K., ''Competitive Markov Decision Processes'', Springer, 1996. * Mesarović, M. D., Macko, D. and Takahara, Y., ''Theory of Hierarchical, Multilevel, Systems'', Mathematics in Science and Engineering, Volume 68, Academic Press, 1970. * Schneeweiss, C., ''Distributed Decision Making'', Springer, 2003. * Wernz, C., ''Multiscale Decision-Making: Bridging Temporal and Organizational Scales in Hierarchical Systems'', Dissertation, University of Massachusetts Amherst. http://scholarworks.umass.edu/dissertations/AAI3336994/ * {{cite journal , last1 = Wernz , first1 = C. , last2 = Deshmukh , year = 2010 , title = Multiscale Decision-Making: Bridging Organizational Scales in Systems with Distributed Decision Makers , doi = 10.1016/j.ejor.2009.06.022 , journal = European Journal of Operational Research , volume = 202 , issue = 3, pages = 828–840

External links

Multiscale Mathematics Initiative: A Roadmap

Multi-Scale Behavioral Modeling and Analysis Promoting a Fundamental Understanding of Agent-Based System Design and Operation
Decision analysis * Markov processes