| Overview |
Decisions involve choices. Economic decision support involves using economic measures to compare alternatives. The process makes use of process modeling and cost estimates, but it involves more than determining whether a process meets a target cost goal. Economic decisions also consider parametric uncertainty and deep uncertainty in the process and markets. Deep uncertainty is a circumstance where analysts do not know the appropriate conceptual models that describe the relationships among the key driving forces that will shape the long-term future, the probability distributions used to represent uncertainty about key variables and parameters, or how to value the desirability of alternative outcomes. Also, nonmonetary factors may influence decisions. Economic decision support involves a variety of methods ranging from simple scoring methods to resource intensive analysis. All methods have in common the attempt to factor all relevant considerations into the decision. Choice of method depends on the impact of the decision and resources available. |
