ABSTRACT
A distinguishing feature of decision analysis is the use of utility functions as a means for ranking impacts. Utility is a ranking of preferences and takes into account the decision maker's preferences for uncertainty as well as personal values for certain outcomes. The most important advantage of decision analysis is its treatment of risk and uncertainty. Uncertainty about future goals and the state of the world presents problems for decision makers. The more serious problems with decision analysis relate to its relevance and compatibility with our fundamental principles of government. Risk analysis by itself cannot produce optimal decisions for social issues without an additional objective statement, such as minimize overall risk, maximize risk reduction per unit cost, reduce risk to acceptable levels, and so on. Each of the many laws aimed at reducing the many risks to society is drafted and debated in isolation, with little or no concern about relevance to other health, safety, or environmental laws.
