# Multiscale decision-making

> Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Multiscale_decision-making
> Markdown URL: https://mediated.wiki/source/Multiscale_decision-making.md
> Source: https://en.wikipedia.org/wiki/Multiscale_decision-making
> Source revision: 1346202576
> License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/)

**Multiscale decision-making**, also referred to as **multiscale decision theory** (**MSDT**), is an approach in [operations research](/source/Operations_research) that combines [game theory](/source/Game_theory), [multi-agent](/source/Multi-agent_system) [influence diagrams](/source/Influence_diagram), in particular [dependency graphs](/source/Dependency_graph), and [Markov decision processes](/source/Markov_decision_process) to solve multiscale challenges[1] in [sociotechnical systems](/source/Sociotechnical_system). MSDT considers interdependencies within and between the following scales: system level, time and information.

Multiscale decision theory builds upon [decision theory](/source/Decision_theory) and [multiscale mathematics](/source/Multiscale_mathematics). Multiscale decision theory can model and analyze complex [decision-making](/source/Decision-making) [networks](/source/Network_(mathematics))[*[disambiguation needed](https://en.wikipedia.org/wiki/Wikipedia:WikiProject_Disambiguation/Fixing_links)*] that exhibit multiscale phenomena. The theory's results can be used by [mechanism designers](/source/Mechanism_design) and decision-makers in organizations and [complex systems](/source/Complex_system) to improve system performance and decision quality.

Multiscale decision theory has been applied to manufacturing enterprises,[2][3] [service systems](/source/Service_system),[4] [supply chain management](/source/Supply_chain_management),[5] [healthcare](/source/Healthcare),[6] [systems engineering](/source/Systems_engineering),[7] among others. In [healthcare](/source/Healthcare), for example, MSDT has been used to identify multi-level incentives that can improve [healthcare](/source/Healthcare) value (quality of outcomes per dollar spent). The [Multiscale Decision Making Laboratory](http://www.msdm.ise.vt.edu/index.html) at [Virginia Tech](/source/Virginia_Tech) directed by Dr. Christian Wernz is working at the forefront of MSDT theory and applications.

Multiscale decision theory is related to:

- [Multiscale modeling](/source/Multiscale_modeling)

- [Decision analysis](/source/Decision_analysis)

- [Cooperative distributed problem solving](/source/Cooperative_distributed_problem_solving)

- [Decentralized decision making](/source/Decentralized_decision_making)

## References

1. **[^](#cite_ref-DoE_1-0)** [Multiscale Mathematics Initiative: A Roadmap](http://science.energy.gov/~/media/ascr/pdf/research/am/docs/Multiscale_math_workshop_3.pdf)

1. **[^](#cite_ref-JMS_2-0)** Wernz, C.; Deshmukh, A. (2007). "Decision Strategies and Design of Agent Interactions in Hierarchical Manufacturing Systems". *Journal of Manufacturing Systems*. **26** (2): 135–143. [doi](/source/Doi_(identifier)):[10.1016/j.jmsy.2007.10.003](https://doi.org/10.1016%2Fj.jmsy.2007.10.003).

1. **[^](#cite_ref-EJOR_3-0)** Wernz, C.; Deshmukh, A. (2010). "Multiscale Decision-Making: Bridging Organizational Scales in Systems with Distributed Decision Makers". *European Journal of Operational Research*. **202** (3): 828–840. [doi](/source/Doi_(identifier)):[10.1016/j.ejor.2009.06.022](https://doi.org/10.1016%2Fj.ejor.2009.06.022).

1. **[^](#cite_ref-ServiceScience_4-0)** Wernz, C.; Henry, A. (2009). "Multi-Level Coordination and Decision-Making in Service Operations". *Service Science*. **1** (4): 270–283. [doi](/source/Doi_(identifier)):[10.1287/serv.1.4.270](https://doi.org/10.1287%2Fserv.1.4.270).

1. **[^](#cite_ref-AnOR_5-0)** Henry, A.; Wernz, C. (2015). "A Multiscale Decision Theory Analysis for Revenue Sharing in Three-Stage Supply Chains". *Annals of Operations Research*. **226** (1): 277–300. [doi](/source/Doi_(identifier)):[10.1007/s10479-014-1735-y](https://doi.org/10.1007%2Fs10479-014-1735-y).

1. **[^](#cite_ref-EURO_6-0)** [Zhang, H., Wernz, C., Slonim A.D. (2015) Aligning Incentives in Health Care: A Multiscale Decision Theory Approach. EURO Journal on Decision Processes (in press).](https://www.researchgate.net/profile/Christian_Wernz/publication/280937533_Aligning_Incentives_in_Health_Care_A_Multiscale_Decision_Theory_Approach/links/55ccd7d208aebebb8f5779da.pdf?origin=publication_detail&ev=pub_int_prw_xdl&msrp=mc3WuAURvCsZdXwILOYGGiF1Cg-1Fb80eXnlcteV-2ul0v7VShlai5YI8W8dnDODQnrUq7OeCfGleFEp32LpBQ.o-xPiLgepmggWWsCzSEsKKetFLw-Wc96HP450Ci5bxHPdh2KVTwBbDbKtXtnUSuM9_4BlEamgcCI2H7VJ3zQLw.iFZPYLyBiQR8eEZQXtDTViLF4hFhgL_788UWEH40DNUkcI6CEJnOMc2eUtmaKOqBjBpPr45vgnmTAbdXrsEHIw)

1. **[^](#cite_ref-NSF_7-0)** [NSF Award #1549896, EAGER: Advancing the Foundations of Systems Engineering through Multiscale Decision Theory](https://www.nsf.gov/awardsearch/showAward?AWD_ID=1549896&HistoricalAwards=false)

## Bibliography

- Filar, J., Vrieze, K., *Competitive Markov Decision Processes*, Springer, 1996. [ISBN](/source/ISBN_(identifier)) [0-387-94805-8](https://en.wikipedia.org/wiki/Special:BookSources/0-387-94805-8)

- Mesarović, M. D., Macko, D. and Takahara, Y., *Theory of Hierarchical, Multilevel, Systems*, Mathematics in Science and Engineering, Volume 68, Academic Press, 1970. [ISBN](/source/ISBN_(identifier)) [0-12-491550-7](https://en.wikipedia.org/wiki/Special:BookSources/0-12-491550-7)

- Schneeweiss, C., *Distributed Decision Making*, Springer, 2003. [ISBN](/source/ISBN_(identifier)) [3-540-40201-2](https://en.wikipedia.org/wiki/Special:BookSources/3-540-40201-2)

- Wernz, C., *Multiscale Decision-Making: Bridging Temporal and Organizational Scales in Hierarchical Systems*, Dissertation, University of Massachusetts Amherst. [http://scholarworks.umass.edu/dissertations/AAI3336994/](http://scholarworks.umass.edu/dissertations/AAI3336994/)

- Wernz, C.; Deshmukh (2010). "Multiscale Decision-Making: Bridging Organizational Scales in Systems with Distributed Decision Makers". *European Journal of Operational Research*. **202** (3): 828–840. [doi](/source/Doi_(identifier)):[10.1016/j.ejor.2009.06.022](https://doi.org/10.1016%2Fj.ejor.2009.06.022).

## External links

- [Multiscale Mathematics Initiative: A Roadmap](http://science.energy.gov/~/media/ascr/pdf/research/am/docs/Multiscale_math_workshop_3.pdf)

- [Multiscale Decision Making Laboratory, Virginia Tech](http://www.msdm.ise.vt.edu/index.html)

- [Multi-Scale Behavioral Modeling and Analysis Promoting a Fundamental Understanding of Agent-Based System Design and Operation](https://web.archive.org/web/20120208160636/http://stinet.dtic.mil/cgi-bin/GetTRDoc?AD=ADA465613&Location=U2&doc=GetTRDoc.pdf)

---
Adapted from the Wikipedia article [Multiscale decision-making](https://en.wikipedia.org/wiki/Multiscale_decision-making) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Multiscale_decision-making?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.