'''Multiscale decision-making''', also referred to as '''multiscale decision theory''' ('''MSDT'''), is an approach in [[operations research]] that combines [[game theory]], [[Multi-agent system|multi-agent]] [[influence diagram]]s, in particular [[dependency graph]]s, and [[Markov decision process]]es to solve multiscale challenges<ref name="DoE">[http://science.energy.gov/~/media/ascr/pdf/research/am/docs/Multiscale_math_workshop_3.pdf Multiscale Mathematics Initiative: A Roadmap]</ref> in [[sociotechnical system]]s. MSDT considers interdependencies within and between the following scales: system level, time and information.
Multiscale decision theory builds upon [[decision theory]] and [[multiscale mathematics]]. Multiscale decision theory can model and analyze complex [[decision-making]] [[network (mathematics)|networks]]{{dn|date=March 2026}} that exhibit multiscale phenomena. The theory's results can be used by [[mechanism design]]ers and decision-makers in organizations and [[complex system]]s to improve system performance and decision quality.
Multiscale decision theory has been applied to manufacturing enterprises,<ref name="JMS">{{cite journal | last1 = Wernz | first1 = C. | last2 = Deshmukh | first2 = A. | year = 2007 | title = Decision Strategies and Design of Agent Interactions in Hierarchical Manufacturing Systems | journal = Journal of Manufacturing Systems | volume = 26 | issue = 2| pages = 135–143 | doi=10.1016/j.jmsy.2007.10.003}}</ref><ref name="EJOR">{{cite journal | last1 = Wernz | first1 = C. | last2 = Deshmukh | first2 = A. | year = 2010 | title = Multiscale Decision-Making: Bridging Organizational Scales in Systems with Distributed Decision Makers | journal = European Journal of Operational Research | volume = 202 | issue = 3| pages = 828–840 | doi=10.1016/j.ejor.2009.06.022}}</ref> [[service system]]s,<ref name="ServiceScience">{{cite journal | last1 = Wernz | first1 = C. | last2 = Henry | first2 = A. | year = 2009 | title = Multi-Level Coordination and Decision-Making in Service Operations | journal = Service Science | volume = 1 | issue = 4| pages = 270–283 | doi=10.1287/serv.1.4.270| doi-access = }}</ref> [[supply chain management]],<ref name="AnOR">{{cite journal | last1 = Henry | first1 = A. | last2 = Wernz | first2 = C. | year = 2015 | title = A Multiscale Decision Theory Analysis for Revenue Sharing in Three-Stage Supply Chains | journal = Annals of Operations Research | volume = 226 | issue = 1| pages = 277–300 | doi=10.1007/s10479-014-1735-y}}</ref> [[healthcare]],<ref name="EURO">[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 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).]</ref> [[systems engineering]],<ref name="NSF">[https://www.nsf.gov/awardsearch/showAward?AWD_ID=1549896&HistoricalAwards=false NSF Award #1549896, EAGER: Advancing the Foundations of Systems Engineering through Multiscale Decision Theory]</ref> among others. In [[healthcare]], for example, MSDT has been used to identify multi-level incentives that can improve [[healthcare]] value (quality of outcomes per dollar spent). The [http://www.msdm.ise.vt.edu/index.html Multiscale Decision Making Laboratory] at [[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]] * [[Decision analysis]] * [[Cooperative distributed problem solving]] * [[Decentralized decision making]]
== References == {{reflist}}
==Bibliography==
* Filar, J., Vrieze, K., ''Competitive Markov Decision Processes'', Springer, 1996. {{ISBN|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|0-12-491550-7}} * Schneeweiss, C., ''Distributed Decision Making'', Springer, 2003. {{ISBN|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/ * {{cite journal | last1 = Wernz | first1 = C. | last2 = Deshmukh | year = 2010 | title = Multiscale Decision-Making: Bridging Organizational Scales in Systems with Distributed Decision Makers | doi = 10.1016/j.ejor.2009.06.022 | journal = European Journal of Operational Research | volume = 202 | issue = 3| pages = 828–840 }}
==External links== * [http://science.energy.gov/~/media/ascr/pdf/research/am/docs/Multiscale_math_workshop_3.pdf Multiscale Mathematics Initiative: A Roadmap] * [http://www.msdm.ise.vt.edu/index.html Multiscale Decision Making Laboratory, Virginia Tech] * [https://web.archive.org/web/20120208160636/http://stinet.dtic.mil/cgi-bin/GetTRDoc?AD=ADA465613&Location=U2&doc=GetTRDoc.pdf Multi-Scale Behavioral Modeling and Analysis Promoting a Fundamental Understanding of Agent-Based System Design and Operation]
[[Category:Decision analysis]] [[Category:Mechanism design|*]] [[Category:Markov processes]]