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Industrial Organization: Applied Frameworks
Decision Making Under Uncertainty
Frameworks and tools for making informed strategic choices when future outcomes are unknown, mitigating risks and leveraging opportunities. ✨
Article Points:
1
Uncertainty means future outcomes cannot be predicted with certainty.
2
Decision Trees map sequential choices, chance events, and outcomes to calculate Expected Monetary Value (EMV).
3
Scenario Planning develops multiple plausible futures to test strategy robustness.
4
Real Options Analysis values managerial flexibility to expand, delay, or abandon projects.
5
The goal is not to eliminate uncertainty but to manage it and build resilient strategies.
6
Requires identifying key uncertainties, quantifying outcomes, and developing robust action plans.
Source:
Decision Making Under Uncertainty
Decision Making Under Uncertainty
No Mindmap Data
Source:
Decision Making Under Uncertainty
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