Decision-Making Under Deep Uncertainty
Choosing and sequencing actions when probabilities cannot be assigned.
At a glance
- Produces
- Options that perform acceptably across many futures, sequenced with signposts for revision.
- Depends on
- Agreement that the disagreement about models will not be resolved before a decision is needed.
- Fails when
- It is run as a search for the optimal option under a single probability distribution.
Deep uncertainty describes situations where the parties involved do not know, or cannot agree on, the relevant models, variables or probability distributions. Decision-making under deep uncertainty shifts the question from "what is most likely?" to "what performs acceptably across a wide range of plausible futures, and how should it adapt?"
How we approach it
Where uncertainty cannot be reduced, the decision itself has to change shape. That is usually a design problem rather than an analytical one.
- We work with plural futures rather than a single distribution, so that disagreement about models does not have to be resolved before a decision can be made.
- Options are assessed for robustness rather than optimality, and for how they fail rather than only for how they score.
- Sequencing is treated as a decision variable. Deferring, staging, hedging and keeping options open are legitimate choices, not admissions of indecision.
- Adaptive plans are designed with signposts and triggers, so the decision can be revised deliberately rather than under pressure.