COMPARATIVE EVALUATION OF CLASSICAL DECISION MAKING CRITERIA IN THE OIL REFINING SECTOR
DOI:
https://doi.org/10.32782/2786-8273/2025-10-4Keywords:
decision-making under uncertainty, Wald criterion, Laplace criterion, Hurwicz criterion, Savage criterion, oil refining industry, investment strategies, risk managementAbstract
This study evaluates the applicability of four classical decision-making criteria such as Wald’s maximin, Laplace’s principle of insufficient reason, Hurwicz’s optimism–pessimism index, and Savage’s minimax regret in assessing investment alternatives for refinery enterprises. A decision matrix was constructed to compare three strategic options: modernization of refining equipment, ecological investment in cleaner technologies, and diversification into petrochemicals, under scenarios of high, stable, and declining oil prices. The results demonstrate that different decision rules produce divergent recommendations. The novelty of the study lies in adapting classical decision-making frameworks to the context of oil refining, providing a structured methodology for evaluating complex investment choices.
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