![]() ![]() Offline and then used for analysis through subsequent online sweeps through theĬircuit. In real-time decision making and expert systems since they can be compiled Decision circuits are particularly effective A compact decision circuit can be compiled by exploitingīoth global structure (conditional independence) as well as local structure In reliability and risk analysis applications.ĭecision circuits are graphical representations for decision analysisĬomputations, building upon the advances in arithmetic circuits for belief They are often ineffective when asymmetry is involved, which is often the case Solve larger real-world problems by exploiting conditional independence, but On the other hand, influence diagrams can To solve asymmetric problems, they are inefficient for problems that involve Solving Asymmetric Decision Problems with Decision Circuitsĭecision analysis problems have traditionally been solved using eitherĭecision trees or influence diagrams. Stochastically dominates all other alternatives for the manager. Moreover, the alternative that is optimal for the executive Our approach works for all risk attitudes, inducingĪ manager who chooses projects to simultaneously maximize the expected utility We show how to set normative target-based incentives with multiple Where the payoff is determined by the amount by which the manager exceeds the Situations, incentive plans are designed by considering multiple target ranges, Target regardless of the amount by which s/he exceeds it. Target and a single pay-off: the manager is rewarded when s/he exceeds the The literature on normative target-based decision analysis considers a single Of the executive (person representing the organization and setting incentives). Trying to achieve the target) is consistent with expected utility maximization A target is said toīe normative when it ensures that decision making by the manager (person Necessarily maximize the organization's expected utility. Manager under such an incentive structure will make decisions that do not ![]() Structure may lead to conflicting choices between manager and organization: a When set arbitrarily, the target-based incentive Target-based incentive structures are a practical way to delegate decision Normative Executive-Manager Incentive Plans with Multiple Target Ranges GAMES AND DECISIONS IN RELIABILITY AND RISK Hotel Villa Carlotta, Belgirate (VB), Italy
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