An approach to multi-attribute utility analysis under parametric uncertainty

The techniques of cost-benefit analysis and multi-attribute analysis provid e a useful basis for informing decisions in situations where a number of po tentially conflicting opinions or interests need to be considered, and wher e there are a number of possible decisions that could be adopted. When the input data to such decision-making processes are uniquely specified, cost-b enefit analysis and multi-attribute utility analysis provide unambiguous gu idance on the preferred decision option. However, when the data are not uni quely specified, application and interpretation of these techniques is more complex. Herein, an approach to multi-attribute utility analysis (and henc e, as a special case, cost-benefit analysis) when input data are subject to parametric uncertainty is presented. The approach is based on the use of a Monte Carlo technique, and has recently been applied to options for the re mediation of former uranium mining liabilities in a number of Central and E astern European States. (C) 2001 AEA Technology Pie. Published by Elsevier Science Ltd. All rights reserved.