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Minimax-rule

This is one option to find the best option. Others are the monetarization, utility analysis, AHP, and optimality curves, for example. 

This method for decision making is a very simple one that is common in real life. Here, the decision-maker first eliminates any option that fails a certain criterion. After the elimination process, all surviving options are considered acceptable.

Next step is focusing on that single criterion that is the most important for the decision-maker. In real life, it often will be the monetary efficiencyIf so, the decision-maker will select that one among the surviving options that offers the highest income.

Given an example, the decision-maker has got a problem:

Option 3 does not fulfill the ecological compatibility requirement because it needs a higher trail density than is considered acceptable. Options 1 and 2 score quite low in terms of societal compatibility due to the activities on the forest roads. And the income of the zero-option does not fulfill the economic expectations. At the end, no option is good enough.




The decision-maker  now has two possibilities: to look for better options or to lower his demands.

For example, if he decides that societal compatibility is not so crucial, then options 1 and 2 become viable. Since these two options have “survived”, he must find the one among them that offers the highest net income. That is option 1, pT skidder. However, the effectiveness of option 1 is low. One has to correct the theoretical income with the coverage (economic effectiveness).

After that operation, the edge of option 1 (pT skidder) decreases, but it still remains the most profitable.


(See more at PR1-F04)


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