Normal form backward induction for decision trees with coherent lower previsions

DOI10.1007/S10479-011-0968-2zbMATH Open1259.91039arXiv1104.0191OpenAlexW3103732008MaRDI QIDQ1761870FDOQ1761870

Matthias C. M. Troffaes, Nathan Huntley

Publication date: 15 November 2012

Published in: Annals of Operations Research (Search for Journal in Brave)

Abstract: We examine normal form solutions of decision trees under typical choice functions induced by lower previsions. For large trees, finding such solutions is hard as very many strategies must be considered. In an earlier paper, we extended backward induction to arbitrary choice functions, yielding far more efficient solutions, and we identified simple necessary and sufficient conditions for this to work. In this paper, we show that backward induction works for maximality and E-admissibility, but not for interval dominance and Gamma-maximin. We also show that, in some situations, a computationally cheap approximation of a choice function can be used, even if the approximation violates the conditions for backward induction; for instance, interval dominance with backward induction will yield at least all maximal normal form solutions.

Full work available at URL: https://arxiv.org/abs/1104.0191

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Mathematics Subject Classification ID

Decision theory (91B06)

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Cited In (9)

• Reducing Interval-Valued Decision Trees to Conventional Ones: Comments on Decision Trees with Single and Multiple Interval-Valued Objectives
• Possibilistic sequential decision making
• Decision with belief functions and generalized independence: two impossibility theorems
• A framework for sensitivity analysis of decision trees
• Decision making under severe uncertainty on a budget
• Centroids of the core of exact capacities: a comparative study
• Variable Elimination for Interval-Valued Influence Diagrams
• Modelling epistemic irrelevance with choice functions
• Evaluating interval-valued influence diagrams

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