Strategic Multi-Criteria Decision Making under Uncertainty

Abstract

This paper suggests modeling multi-criteria problems as strategic games and solving them using non-cooperative game theory. The suggested method can be used to find the final outcome of a decision making problem, where criteria are considered as decision makers in the game, providing useful insights overall. To deal with the uncertainty in input variables the paper uses a Monte-Carlo approach which maps the stochastic problem into many deterministic strategic games. The games are then solved using non-cooperative game theory. To show the applicability of the suggested method in resolving real-world hydro-environmental conflicts, the suggested method is applied to find the non-dominated solution for solving the California's Sacramento-San Joaquin Delta conflict, where economy competes with the environment, putting the Delta, the major water supply hub for California and the home to a unique ecosystem, in a serious crisis.