This is the first chapter of he second main section on the book, dealing with several types of models to support policy analysis and decision making. As we descried in the first chapter of the book, managers at different levels in the organization make decisions that involve different levels of complexity and uncertainy. Also as described in the initial chapter of the book (see Figure 8.1), different types of models can help in dealing with such uncertainties and complexities. But what is the role of models in this picture? In general, many models are methods that help the policy and decision maker to make sense and organize data. They provide a common structure to organize and transform data into useful indicators to guide decision making. This structure can be considered a form of “template” that is flexible enough for being adapted to many different situations.

Figure 8.1 Uncertainty, models and decisions.

This chapter starts then with a quick overview of the decision making process, and continues with basic definitions and types of models that can be used for decision purposes. The chapter continues the modeling processes and finishes with a reflection on the validity of models more in general.

Attribution

By Luis F. Luna-Reyes and Erika Martin, and licensed under  CC BY-NC-SA 4.0.