Decisions involving issues of sustainability tend to include an array of objective attributes along with highly subjective value judgments. Managers must find a way to factor qualitative attributes such as environmental, social, and ethical impact into the decision-making process.
Warren J. Hahn, PE, PhD
Merging decision analysis with the well-known principles used in valuing options on financially traded assets can be further enhanced by applying an intuitive approach based on familiar concepts from the field of decision analysis.
Simulation, an analytical tool from the management science field, can be of tremendous value in generating empirical evidence about auctions when actual data does not exist.