A dynamic, nonlinear model for optimal decision-making

Decision problems constitute a genre of systems theory which we face everyday in our routine lives. Yet among systems engineers there is disagreement and confusion about how to automate decision processes. This attests to the complexity of many difficult decision problems; finding a common framework for representation will be difficult, if not impossible. The basic elements of numerical modeling of decision processes are briefly discussed. A normative, utility-theoretic perspective is followed while issues of nonlinearity, stochastic processes, and dynamic parameters are briefly discussed. This paper is intended to illustrate the challenges to putting decision problems on a first principles basis.<
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