A Theory of Strategic Problem Formulation

Markus Baer (Washington University in St. Louis)
Kurt Dirks (Washington University in St. Louis)
Jackson Nickerson (Washington University in St. Louis)

Abstract: We develop a theory of strategic problem formulation for complex, ill-structured problems. Based on a limited number of assumptions, we theoretically identify a core set of impediments that limit the comprehensiveness of the formulation activity. We then use these impediments to derive design goals, which, if satisfied by an appropriately designed mechanism, can expand problem formulation comprehensiveness. We design a structured process that indeed satisfies the goals and discuss its use in several real-world applications.


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