Chapter 12 Multiple objective decision analysis in regional economics

This chapter discusses the concept of multiple objective decision analysis in regional economics. Until the end of the 1960s, decision analysis was still dominated by simple optimization methods, such as single objective programming, cost-benefit analysis, and fixed target approaches. As a result, a systematic analysis of conflicts involved in economic decision problems with multiple goals and multiple actors did not receive sufficient attention. Later, a need was felt for appropriate analytical tools for analyzing conflicts among policy objectives. Multiple objective decision analysis aims at providing such a set of tools. In the past decade, multiple objective decision analysis has become one of the most powerful methodologies in the programming theory. It serves to enhance the quality of decision making by providing both a sound methodological platform for decision analysis and an operational framework for actual decision making. The chapter provides a presentation and discussion of the theoretical framework of multiple objective decision analysis and its use in regional economics. It also provides some basic concepts in multiple objective decision analysis and reviews its links to the choice theory.