Engineering-Economic Systems: A Problem-Solving Discipline

Abstract

Engineering-Economic Systems represents a discipline that has an engineering, or problem-solving, orientation, but which encompasses application areas beyond those traditionally considered part of engineering. Applications include control engineering, energy policy analysis, urban service planning, medical decision making, investment strategy development, business analysis, algorithm design, as well as subtopics in all other branches of engineering. The discipline is based on a set of fundamental core concepts: dynamics, probability, optimization, economics, and decision analysis; these provide a framework for structuring and solving complex system problems in the same way that physical science forms the foundation for physical branches of engineering. The Department of Engineering-Economic Systems, Stanford University, was established to help create this discipline, through education, research, and involvement in applications. In the twenty years since its creation, the Department has pioneered the concept of broad analytical problem-solving as a discipline, and has evolved strong programs in systems engineering, public policy analysis, and business analysis a wide spectrum of areas cemented together by the foundation of core concepts and a commitment to apply these concepts wherever important issues arise