An approach to multi-attribute utility analysis under parametric uncertainty

The techniques of cost-benefit analysis and multi-attribute analysis provide a useful basis for informing decisions in situations where a number of potentially conflicting opinions or interests need to be considered, and where there are a number of possible decisions that could be adopted. When the input data to such decision-making processes are uniquely specified, cost-benefit analysis and multi-attribute utility analysis provide unambiguous guidance on the preferred decision option. However, when the data are not uniquely specified, application and interpretation of these techniques is more complex. Herein, an approach to multi-attribute utility analysis (and hence, 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 remediation of former uranium mining liabilities in a number of Central and Eastern European States.