Building models of values

To achieve a set of objectives, whether they are made explicit or not, is the entire intent of decisionmaking. When they are explicitly stated, the objectives are often quantified with an objective function. Because of its critical role for decisionmaking, the objective function should be developed from first principles, sound logic, reasoned judgments, and carefully acquired consistent data. Unfortunately, in practice many objective functions are hastily chosen from a process that can at best be described as arbitrary. This paper presents a better alternative for developing the objective function, namely to construct it from a quality modelling effort. © 1989.

Duke Scholars

Author Ralph L. Keeney Fuqua School of Business