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ABSTRACT
Decision making is one of the basic cognitive processes of human behaviors by which a preferred
option or a course of actions is chosen from among a set of alternatives based on certain criteria.
Decision theories are widely applied in many disciplines encompassing cognitive informatics,
computer science, management science, economics, sociology, psychology, political science, and
statistics. A number of decision strategies have been proposed from different angles and applica-
tion domains such as the maximum expected utility and Bayesian method. However, there is still
a lack of a fundamental and mathematical decision model and a rigorous cognitive process for
decision making. This article presents a fundamental cognitive decision making process and its
mathematical model, which is described as a sequence of Cartesian-product based selections.
A rigorous description of the decision process in real-time process algebra (RTPA) is provided.
Real-world decisions are perceived as a repetitive application of the fundamental cognitive
process. The result shows that all categories of decision strategies fit in the formally described
decision process. The cognitive process of decision making may be applied in a wide range of
decision-based systems such as cognitive informatics, software agent systems, expert systems,
and decision support systems.
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74 Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007
making process in the brain, which may be using real-time process algebra (RTPA). The
served as the foundation of various decision complexity of decision making in real-world
making theories. problems such as software release planning
Decision theories can be categorized into is studied, and the need for powerful decision
two paradigms: the descriptive and normative support systems are discussed.
theories. The former is based on empirical
observation and on experimental studies of A MATHEMATICAL MODEL
choice behaviors; and the latter assumes a ratio- OF DECISIONS AND DECISION
nal decision-maker who follows well-defined
preferences that obey certain axioms of rational MAKING
behaviors. Typical normative theories are the Decision making is one of the fundamen-
expected utility paradigm (Osborne & Rubin- tal cognitive processes of human beings (Wang
stein, 1994) and the Bayesian theory (Berger, et al., 2004; Wang, 2007a; Wang, 2007b) that is
1990; Wald, 1950). Edwards developed a 19- widely used in determining rational, heuristic,
step decision-making process (Edwards et al., and intuitive selections in complex scientific,
2001) by integrating Bayesian and multi-attri- engineering, economical, and management
bute utility theories. Zachary, Wherry, Glenn, situations, as well as in almost each procedure
and Hopson (1982) perceived that there are of daily life. Since decision making is a basic
three constituents in decision making known mental process, it occurs every few seconds
as the decision situation, the decision maker, in the thinking courses of human mind con-
and the decision process. Although the cog- sciously or subconsciously.
nitive capacities of decision makers may be This section explores the nature of selec-
greatly varying, the core cognitive processes tion, decision, and decision making, and their
of the human brain share similar and recursive mathematical models. A rigorous description
characteristics and mechanisms (Wang, 2003a; of decision making and its strategies is de-
Wang & Gafurov, 2003; Wang & Wang, 2004; veloped.
Wang et al., 2004).
This article adopts the philosophy of the The Mathematical Model of Decision
axiom of choice (Lipschutz, 1967). The three Making
essences for decision making recognized in this The axiom of selection (or choice) (Lip-
article are the decision goals, a set of alterna- schutz, 1967) states that there exists a selec-
tive choices, and a set of selection criteria or tion function for any nonempty collection of
strategies. According to this theory, decision nonempty disjoint sets of alternatives.
makers are the engine or executive of a deci-
sion making process. If the three essences of Definition 1. Let {Ai | i I} be a col-
decision making are defined, a decision mak- lection of disjoint sets, Ai U, and Ai , a
ing process may be rigorously carried out by function
either a human decision maker or by an intel-
ligent system. This is a cognitive foundation c: {Ai} Ai, i I (1)
for implementing expert systems and decision
supporting systems (Ruhe, 2003; Ruhe & An, is a choice function if c(Ai) = ai, ai Ai. Or an
2004; Wang et al., 2004; Wang, 2007a). element ai Ai may be chosen by c, where Ai
In this article, the cognitive foundations is called the set of alternatives, U the universal
of decision theories and their mathematical set, and I a set of natural numbers.
models are explored. A rigorous description
of decisions and decision making is presented. On the basis of the choice function and
The cognitive process of decision making is the axiom of selection, a decision can be rigor-
explained, which is formally described by ously defined as follows.
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Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007 75
Copyright 2007, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc.
is prohibited.
76 Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007
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Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007 77
The Framework of Rational Decision and decision grids (Matlin, 1998; Payne et
Making al., 1998; Pinel, 1997; Wang, 2005a,b).
According to Table 1, rational and complex
decision making strategies can be classified Definition 4. The dynamic strategies and
into the static and dynamic categories. Most criteria of decision-making are those that all
existing decision-making strategies are static alternatives and criteria are dependent on both
because the changes of environments of deci- the environment and the effect of the historical
sion makers are independent of the decision decisions made by the decision maker.
makers activities. Also, different decision
strategies may be selected in the same situ- Classic dynamic decision making meth-
ation or environment based on the decision ods are decision trees (Edwards et al., 2001).
makers values and attitudes towards risk and A new theory of decision grid is developed in
their prediction on future outcomes. When Wang (2005a,b) for serial decision making.
the environment of a decision maker is inter- Decision making under interactive events and
active with his or her decisions or the envi- competition is modeled by games (Matlin,
ronment changes according to the decision 1998; Payne et al., 1998; von Neumann & Mor-
makers activities and the decision strategies genstern, 1980; Wang, 2005a). Wang (2005a)
and rules are predetermined, this category of presents a formal model of games, which rig-
decision making needs are classified into the orously describes the architecture or layout of
category of dynamic decisions such as games games and their dynamic behaviors.
Decision Models
Certain outcomes?
Yes
No
No
Predictable
probability?
Yes
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78 Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007
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Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007 79
ProblemSolvingProcess ComprehensionProcess
DecisionMakingProcess QualificationProcess
QuantificationProcess
the layer 6 processes comprehension, qualifica- where O is a given object identified by an ab-
tion, and quantification, as well as the layer 5 stract name, A is a set of attributes for charac-
processes of search, representation, and memo- terizing the object, and R is a set of relations
rization. Formal descriptions of these related between the object and other objects or attri-
cognitive processes in LRMB may be referred butes of them.
to in Wang (2003b), Wang et al., (2003), and On the basis of the LRMB and OAR
Wang et al. (2003, 2004). models developed in cognitive informatics
In contrary to the traditional container (Wang, 2003a, 2007b), the cognitive process of
metaphor, the human memory mechanism can decision making may be informally described
be described by a relational metaphor, which by the following courses:
perceives that memory and knowledge are rep-
resented by the connections between neurons in 1. To comprehend the decision making prob-
the brain, rather than the neurons themselves as lem and to identify the decision goal in terms
information containers. Therefore, the cogni- of Object (O) and its attributes (A).
tive model of human memory, particularly the 2. To search in the abstract layer of LTM
long-term memory (LTM) can be described by (Squire, Knowlton, & Musen et al. 1993;
two fundamental artifacts (Wang et al., 2003): Wang & Wang, 2004) for alternative solu-
(a) Objects: The abstraction of external entities tions () and criteria for useful decision
and internal concepts. There are also sub-ob- strategies (C).
jects known as attributes, which are used to 3. To quantify and C and determine if the
denote detailed properties and characteristics search should be go on.
of an object. (b) Relations: Connections and 4. To build a set of decisions by using and
relationships between object-object, objectat- C as obtained in previous searches.
tributes, and attribute-attribute. 5. To select the preferred decision(s) on the
Based on the previous discussion, an ob- basis of satisfaction of decision makers.
ject-attribute-relation (OAR) model of memory 6. To represent the decision(s) in a new sub-
can be described as a triple (Wang & Wang, OAR model.
2004; Wang et al., 2003), for example: 7. To memorize the sub-OAR model in
LTM.
OAR = (O, A, R) (8)
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80 Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007
A detailed cognitive process model of are searched, which result in two sets of and
decision making is shown in Figure 3 where C, respectively. The results of search will be
a double-ended rectangle block represents a quantified in order to form a decision as given
function call that involve a predefined process in Eq. 2, for example: d = f: C , where
as provided in the LRMB model. U and .
The first step in the cognitive process When the decision d is derived, the pre-
of decision making is to understand the given vious OAR model will be updated with d and
decision-making problem. According to the related information. Then, the decision maker
cognitive process of comprehension (Wang may consider whether the decision is satisfied
et al., 2003), the object (goal) of decision will according to the current states of nature and
be identified and an initial OAR model will be personal judgment. If yes, the OAR model for
created. The object, its attributes, and known the decision is memorized in the LTM. Oth-
relations are retrieved and represented in the erwise, the decision-making process has to
OAR model. Then, alternatives and strategies be repeated until a satisfied decision is found,
Begin
Identify
(Object - O)
Identify
(Attributes - A)
No Evaluate Evaluate No
(Adequacy of ) (Adequacy of C)
Yes Yes
Select (Decision - d)
d = f (, C)
Evaluate
No (Satisfaction of d)
Yes
Representation
(OAR)
Memorize
(OAR)
End
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Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007 81
or the decision maker chooses to quit without decisions () and useful criteria (C) are carried
a final decision. During the decision making out in parallel. The searches are conducted in
process, both the mind state of the decision both the brain of a decision maker internally,
maker and the global OAR model in the brain and through external resources based on the
change from time to time. Although the state knowledge, experiences, and goal expecta-
of nature will not be changed in a short period tion. The results of searches are quantitatively
during decision making, the perception towards evaluated until the searching for both and C
it may be changed with the effect of the updated are satisfied. If nonempty sets are obtained for
OAR model. both and C, the n decisions in d have already
As described in the LRMB model (Wang existed as determinable by Eqs. 2 and 3.
et al., 2004), the process of decision making is a It is noteworthy that learning results,
higher-layer cognitive process defined at Layer experiences, and skills of the decision maker
6. The decision making process interacts with may dramatically reduce the exhaustive search
other processes underneath this layer such as process in DMP based on known heuristic
search, representation, and memorization, as strategies.
well as the processes at the same layer such as When one or more suitable decisions are
comprehension, qualification, quantification, selected from the set of d by decision makers
and problem solving. Relationships between via evaluating the satisfaction levels, satisfied
the decision-making process and other related decisions will be represented in a sub-OAR
processes have been described in Figure 1 model, which will be added to the entire knowl-
and in Wang and Wang (2004) and Wang et edge of the decision maker in LTM.
al. (2004).
SOLVING COMPLEX
FORMAL DESCRIPTION OF PLANNING PROBLEMS BY
THE COGNITIVE DECISION DECISION SUPPORT SYSTEMS
MAKING PROCESS The decision-making models and the for-
On the basis of the cognitive model of mal description of the cognitive decision-mak-
decision making as described in Figure 3, a ing process as presented in the second through
rigorous cognitive process can be specified fourth sections, can be used to address the solu-
by using RTPA (Wang, 2002; Wang, 2003b). tion of wicked planning problems in software
RTPA is designed for describing the architec- engineering. Wicked planning problems are not
tures, static and dynamic behaviors of software only difficult to solve but also difficult to be
systems (Wang, 2002), as well as human cogni- explicitly formulated. The notion of a wicked
tive behaviors and sequences of actions (Wang, planning problem was introduced by Rittel and
2003b; Wang et al., 2003). Webber (1984), where several characteristics
The formal model of the cognitive pro- were given to classify a problem as wicked.
cess of decision making in RTPA is presented One of them states that there is no definite for-
in Figure 4. According to LRMB and the OAR mulation of the problem. Another one states
model of internal knowledge representation in that wicked problems have no stopping rule. So,
the brain, the result of a decision in the mind of in these cases, does it make sense to look into
the decision maker is a new sub-OAR model, a more systematic approach at all or shouldnt
or an updated version of the global OAR model we just rely on human intuition and personnel
of knowledge in the human brain. experience to figure out a decision?
As shown in Figure 4, a decision-making A systematic approach for solving the
process (DMP) is started by defining the goal wicked planning problem of software release
of decision in terms of the object attributes. planning was given in Ngo-The and Ruhe
Then, an exhaustive search of the alternative (2006). Release planning is known to be cog-
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82 Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007
Quantify ()
Evaluate ()
)
T
|| R
Satisfication of C F
( Search (C)
Quantify (C)
Evaluate (C)
)
}
)
)
nitively and computationally difficult (Ruhe & It is feasible to the existing hard constrains
Ngo-The 2004). Different kinds of uncertain- that have to be fulfilled.
ties make it hard to be formulated and solved It satisfies some additional soft constraints
because real-world release planning problems sufficiently well. These soft constraints,
may involve several hundred factors potentially for example, can be related to stakeholder
affecting the decisions for the next release. satisfaction, consideration of the risk of
Thus, a good release plan in decision-making implementing the suggested releases, bal-
is characterized as: ancing of resources or other aspects which
are either hard to formalize or not known in
It provides a maximum utility value from advance.
offering a best possible blend of features in
the right sequence of releases. It seems that uncertain software engi-
neering decision problems are difficult to be
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Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007 83
explicitly modeled and completely formalized, making on the basis of recent research results
since the constraints of organizations, people, in cognitive informatics. A rigorous description
technology, functionality, time, budget, and of the decision process in real-time process
resources. Therefore, all spectrum of decision algebra (RTPA) has been presented. Various
strategies as identified in Table 1 and Figure decision-making theories have been compara-
1 need to be examined. This is a typical case tively analyzed and a unified decision-making
where the idea of decision support arises when model has been obtained, which shows that
human decisions have to be made in complex, existing theories and techniques on decision-
uncertain, and/or dynamic environments. Carls- making are well fit in the formally described
son and Turban (2002) point out that the accep- decision process.
tance of theses systems is primarily limited by One of the interesting findings of this
human related factors: (1) cognitive constraints, work is that the most fundamental decision that
(2) understanding the support of such a model, is recurrently used in any complex decision
(3) difficulty in handling large amounts of in- system and everyday life is a Cartesian product
formation and knowledge, and (4) frustration of a set of alternatives and a set of selection
caused by complicated theories. criteria. The larger both the sets, the more ideal
The solution approach presented in Ngo- the decisions generated. Another interesting
The et al. (2006) address the inherent cognitive finding of this work is that, although the cogni-
and computational complexity by (1) an evo- tive complexities of new decision problems are
lutionary problem solving method combining always extremely high, they become dramati-
rigorous solution methods to solve the actual cally simpler when a rational or formal solu-
formalization of the problem combined with tion is figured out. Therefore, the reducing of
the interactive involvement of the human ex- cognitive complexities of decision problems by
perts in this process; (2) offering a portfolio of heuristic feedbacks of known solutions in each
diversified and qualified solution at all itera- of the categories of decision strategies will be
tions of the solution process; and (3) using the further studied in intelligent decision support
multi-criteria decision aid method ELECTRE systems. According to case studies related to
(Roy, 1991) to assist the project manager in the this work, the models and cognitive processes
selection of the final solution from the set of of decision-making provide in this article can
qualified solutions. Further research is ongoing be applied in a wide range of decision-support
to integrate these results with the framework of and expert systems.
the decision-making models and the improved
understanding of the cognitive process of deci- Acknowledgments
sion-making as developed in this article. This work is partially sponsored by Natu-
ral Sciences and Engineering Research Council
CONCLUSION of Canada (NSERC) and Information Circle of
Decision-making is one of the basic cog- Research Excellence (iCORE) of Alberta. The
nitive processes of human behaviors by which authors would like to thank the anonymous
a preferred option or a course of actions is reviewers for their valuable suggestions and
chosen from among a set of alternatives based comments on this work.
on certain criteria. The interest in the study of
decision-making has been widely shared in References
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making process, which explains the nature and tions for the next decade. Decision Support
course in human and machine-based decision-
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84 Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007
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is prohibited.
Intl Journal of Cognitive Informatics and Natural Intelligence, 1(2), 73-85, April-June 2007 85
brain (LRMB). IEEE Transactions on Zachary, W., Wherry, R., Glenn, F., Hopson, J.
Systems, Man, and Cybernetics (C), 36(2), (1982). Decision situations, decision pro-
124-133. cesses, and decision functions: Towards a
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Yingxu Wang is professor of cognitive informatics and software engineering, director of Inter-
national Center for Cognitive Informatics (ICfCI), and director of Theoretical and Empirical
Software Engineering Research Center (TESERC) at the University of Calgary. He received a
PhD in software engineering from The Nottingham Trent University, UK (1997), and a BSc in
electrical engineering from Shanghai Tiedao University (1983). He was a visiting professor in
the Computing Laboratory at Oxford University (1995), and has been a full professor since 1994.
He is editor-in-chief of International Journal of Cognitive Informatics and Natural Intelligence
(IJCINI), editor-in-chief of World Scientific Book Series on Cognitive Informatics, and editor
of CRC Book Series in Software Engineering. He has published more than 290 papers and 10
books in software engineering and cognitive informatics, and won dozens of research achieve-
ment, best paper, and teaching awards in the last 28 years, particularly the IBC 21st Century
Award for Achievement in recognition of outstanding contribution in the field of cognitive
informatics and software science.
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