ADAPTIVE DECISION MAKING /ADAPTIVE MANAGEMENT

 

We are now going to combine the 2 major themes we’ve been discussing today: (1) using models to make optimal resource decisions, and (2) reducing uncertainty via monitoring and feedback of information into model predictions.  As before, we are trying to make an optimal management decision, but we are faced with 2 or more alternative models about how the system works.  When we do this, and also conduct monitoring to follow up on the response of our system to management and then feed back this information into future decision making, we are engaging in Adaptive Resource Management (ARM).

 

ARM has these key features:

 

ARM thus ordinarily requires some type of sequential decision making process.  That is, if a decision will be made once, and then never again, there is no possibility of adaptation.  We’ll see that this isn’t a particularly restrictive assumption, and that in fact most natural resource decision problems can be viewed sequentially, and thus ARM is appropriate.  But, if the decision problem is truly one time, we can (and should) still use the first 3 features:

 

 

ADAPTATION THROUGH TIME

 

Example: Adaptive harvest management for mid-continent mallards

 

·       Decision: What should the harvest rate (harvest regulations) be each year?

·       Predictions: Under additive (AMH) and compensatory (CMH) mortality hypotheses

·       Monitoring: Aerial surveys of breeding ducks (Bpop) and habitat (Ponds)

 

This is a problem that clearly fits into ARM, because (1) there is a clear objective, (2) decisions are being made sequentially, (3) there is uncertainty and prediction under alternative models, and (4) we have a monitoring program to allow adaptive feedback.  We’ll illustrate this example using a simplified version of the AHM models for mallards, in which we are considering only population size (Bpop) at 3 levels: 5, 10, or 15 million ducks, and 3 possible harvest decisions: restrictive (10% harvest rates), moderate (20%), or liberal (30%) regulations.

 

The Netica program sets up this simple problem, in which next year’s population is predicted given the current Bpop, and each of the 3 possible harvest levels.  The “model” box sets the weights on each model: 100% on CMH, 100% on AMH, or 50% weight on each (if ‘unknown’ is selected).  This model takes into account both the immediate (this year’s harvest= current value) value of harvest, and potential future harvest (future value) according to a model which assigns probabilities to each potential population level next year, for each decision, and under each model.  The total value (the right hand column in the ‘harvest rate’ box is the current harvest value, plus the expected future value (gotten by averaging values over each possible future population size).  For example, if we currently have 10 million ducks, and harvest at 20%, we will get a harvest this year of 2 million; the harvest next year depends on next year’s Bop (20% chance of 5million , 50% of 10 million, and 30% of 15 million).  The expected value of this future (in this example, over the next 4years) harvest will be 12.58 million, making the total expected value of that decision 14.58 million.  If we compare that decision to the other 2 (10% or 30% harvest) we see that 20% provides the highest value.  This result depends on Bpop: at 5 million ducks the optimal decision is also to harvest at 20%, but at 15 million ducks it is 30%.

 

If we switch models (100% weight on AMH) we get different results: 10% harvest when Bpop=5 million, and 20% harvest at Bpop=10 or 15 million Finally, if we give equal weight to each model (right-click ‘unknown’ on “Model”) then  we get 10% harvest when Bpop=5 million, 20% harvest at Bpop=10, and 20% at Bpop=15 million. This gives us a means of taking into account model uncertainty in decision making.

 

To update our model weights, we simply have to make a decision (presumably, the optimal one) and then see what next year’s Bpop turns out to be.  This is essentially the reverse problem: we know where we started, what we decided, and where we ended. Now we want to see how likely the competing models are, given these outcomes.

 

Going back to the harvest decision problem, assume that we:

(1) Started with some relative belief in the alternative models (e.g., 50-50 for AMH-CMH),

(2) Observed that the population was in a particular state (e.g., Current_Bpop=15)

(3) Based on (1), (2) and our model we made a decision about what harvest rate should be in order to reach our objective (maximize expected long-term harvest). In this example for Current_Bpop=15 the  Netica program provides us with the optimal decision Harvest_rate=0.3 (notice that it’s a close call!).

Now we come back a year later and survey the population and find that Next_bpop=5 (i.e., the population has declined from 15 to 5). Since we now have this information, our question no longer is "what’s the probability of going from Current_pop=15 to Next_bpop=5, given our decision Harvest_rate=0.3 and 50-50 probabilities for each model". The question is turned around: given that we indeed have made this particular transition, how does this affect our relative belief in the 2 models? It turns out that this outcome is more likely for one of the models than it is for the other, and we can use Bayes’ Theorem to adjust our model weights using these likelihoods.

 If we call L(5|M) the likelihood of this occurrence (going from 15 to 5 under a harvest decision of 0.3) we have

L(5| CMH)= 0.28571 and L(5|AMH) = 0. 71429 (we’ll see where these come from in a minute). Given this, we can use Bayes’ Theorem to get a new probability for AMH as

P(AMH|5) = L(5|AMH) P(AMH) / [L(5|AMH) P(AMH)+L(5|CMH) P(CMH)]

Where do we get P(AMH) and P(CMH)? These are just our prior beliefs (before the new survey came along) in each hypothesis, or 0.5 each. Putting all this together we get

P(AMH|5) = 0.71429 (0.5) / [0.71429 (0.5)+0.28571 (0.5)] = 0.71429 = 71.4%

and P(CMH|5) = 1- P(AMH|5)= 0.28571 = 28.6%

That is, our belief has now jumped to over 2/3 in favor of AMH.

In turns out that we can get these values for any survey outcome by the approach suggested above: essentially reversing the direction of the problem. Using the previous Netica file accomplishes this. Simply click on S5=15, A5=0.3, and S4=5 to set these as "knowns" , keeping "MODEL" as the unknown. Notice that what has happened is that the model probabilities have shifted– to the ones calculated above (Netica expresses these as percentages).

Where did the "likelihoods" come from? Essentially what has happened is that Netica "knows" that the conditioning has been reversed: what was previously unknown (the future state of the system) and predicted conditional on the model weights (known), is now known (observed), and it is the model weights that are predicted. This is not "magic" ; it is Bayes' Theorem, where recall that

P(a|b)P(b) = P(b|a)P(a)

 

Netica automatically applies Bayes’ Theorem, to solve for the conditional probability which is unknown: in the first case, the conditional probability of the observed population size at t+1, given the model, and in the second case, the conditional probability of the model, given the observed population size.

As an important aside, the above is a simplification of the "updating" process that is actually used. It is simpler because we are focused entirely on the probabilities of changing states under each model, and are totally neglecting sampling issues. That is, we essentially assumed that the state of the system was perfectly observable at each time period. In actuality we must take sampling error into account, and this considerably complicates things. Nonetheless, the above illustrates the basic ideas behind updating, and for that reason is useful (and necessary to understand before moving on to more complex problems!).

Exercise : Find the new probabilities for CMH and AMH if  Current_pop=15, Harvest_rate=0.3, but Next_yr_pop=10.

Using the New Information in Decision-making

What use can we make of this new information? First, we apply the new information to our next round of decision making, by changing the model probabilities in the decision model to reflect the update. This has been done already in a revised Netica program

Exercise : Find the optimal decision and its value, given Current_pop =5 and these new model probabilities. What can you say about the value of this decision, compared to 50-50 model uncertainty?

Moving these probabilities away from 50% (to 100% or 0) should improve decision making. It thus has a value, tied directly to the management objective. Formally methods like the above can be used to determine just how much theoretically could be gained by collecting the best information possible, know as the Expected Value of Perfect Information (EVPI).

DON’T STOP NOW! It is unlikely (!) that in a single year, perfect knowledge about a system will be gained. Knowledge tends to increase incrementally, and the gain is slowed down by environmental variation, imperfect management control, and sampling error. The updating process should continue, by continually making new predictions about the impact of management, using the current model probabilities (so, knowledge gained to date) as the starting point. Use the Netica file with the new probability weights (revised program), which P(AMH) = 71.4% and P(CMH) = 28.6%

Exercise:  Find the new model probabilities using the revised Netica program if Current_pop =10, Harvest_rate =0.2, and Next_yr_pop =15.

AHM SUMMARY

Adaptive Harvest Management calls for:

(1) Starting with some relative belief in the alternative models (e.g., 50-50 for AMH-CMH),

(2) Observing that the population is in a particular state (e.g., Current_bpop=15)

(3) Based on (1), (2) and our models making e a harvest decision in order to maximize the objective

(4) Collecting survey data next year to compare to each model prediction and calculate new model probabilities.

(5) Going to step (1) using the new model probabilities.

  A Note on Simplicity Versus Complexity

Perhaps you are bothered by the fact that we modeled a harvest system with a single state variable (abundance), without consideration for habitat or other factors. You might also not like the fact that the population state is considered rather crudely (5, 10, 15 of whatever units– perhaps millions of ducks).

In fact, most of the major elements of adaptive harvest management (AHM) are recognizable in this example, albeit simplified. The key thing to remember is that we do not have to include all the information about the system, in order to use a model for decision making. The first thing to ask is: what are the elements of the system essential to the decision maker, relevant to determining the future value of the decision? The second thing to ask is, what of these system states can be practicably assessed, in a timely manner, so as to be useful to decision making? For North American migratory birds, the key pieces of information are (1) the abundance of the stock (as determined by annual breeding ground surveys) and (2) the abundance of suitable breeding habitats (determined also by spring surveys). A number of alternative, empirical models are used to predict fall flight and the impacts of harvest (e.g, under AMH and CMH). The system states are considered at a bit finer scale of resolution than our examples above, and the models are a bit more complex (although fundamentally reducable to some simple probability tables, like the examples), and the computational methods a bit more complicated (e.g., SDP as noted earlier). But the basic pieces are the same.

For a more complete coverage of this topic, see the FORS 8390 lab on harvest decision analysis.

ADAPTATION THROUGH SPACE

 

As mentioned earlier, sometimes the decision that is made is one that is not likely to be revisited any time soon. For instance, the decision might be whether (or how) to build a reserve, cut a forest stand, or take out a dam on a river.  Apparently, this type of decision problem is not amenable to adaptation, because the decision will not repeat soon.  However, if we think about this problem a bit, we will realize that adaptation can be used, if we generalize the problem to one of using decision making and monitoring at 1 spatial location to inform us about a decision that has not yet been made at some other spatial location.  This information sharing is appropriate, if the locations are part of an overall system thought to behave according to a common set of dynamics (which are imperfectly understood). 

 

Example: Reserve design

 

In this example, we have a decision problem involving the question of whether to build or not build a reserve to protect a particular species from local extinction. The species currently exists at each of 2 sites, and we have alternative models that make different predictions about whether or not the species will persist following each decision (one basically says it makes no difference, the other says building the reserve increases the probability of persistence).  Following each decision, we monitor the population and observe whether it persists or goes locally extinct.  Finally, each of these outcomes has a value to the decision maker (see the FORS 8390 lab on conservation decision analysis for more details, including the rationale behind these values). 

 

The first decision is whether to build a reserve on the first site, followed by a decision as to whether to build the reserve on the second site.  Let's suppose that at the first decision, we have (perhaps based on previous empirical work) greater (70%) belief in Model 2 than in Model 1.  This is the scenario programmed into the spatial updating with Netica example.

In this case, the expected value of "Reserve" for Decision 1 is slightly higher than "Nothing" (100.5 vs. 100.25), so we build the reserve. Suppose we then observe that the species persists (Status 1= persists). Notice that the model weights have changed: they are now 24.8 - 75.2 in favor of Model 2. Notice too that the expected value of Decision 2 now changes: evidence as a result of the previous decision has "fed back" into decision making. We again make the apparently optimal decision (Reserve) and observe what happens (persistence or extinction). For example, if the species persists at the second reserve, the model weights now change to 20.2 - 79.8.

Exercise : Describe the impact of the following sequence of decisions and observations on the relative belief in Model 1 and Model 2 (following all decisions and observations):

Decision 1

Status 1

Decision 2

Status 2

P(Model1)

P(Model1)

Reserve

Persist

Nothing

Persist

 

 

Reserve

Persist

Reserve

Extinct

 

 

Reserve

Extinct

Reserve

Extinct

 

 

Nothing

Persist

Reserve

Extinct

 

 

Reserve

Persist

Nothing

Extinct

 

 

Reserve

Persist

Reserve

Persist

 

 

 

 

For a more complete coverage of this topic, see the FORS 8390 lab on conservation decision analysis.


Send mail to Instructor Return to home page

Last updated 27 May 2006

Powered by Zope