# Computational Complexity

## Introduction

Decision programming relies on mixed-integer linear programming, which is known to be an NP-hard problem. In this section, we analyze how the influence diagram affects the size of the mixed-integer linear model, determining whether it is tractable.

We use the following inequalities for sum and product of non-negative elements $A$ to derive the lower and upper bounds for the number of paths and the number of decision variables. Sum inequality:

$$$|A| \left(\min_{a∈A} a\right) ≤ ∑_{a∈A} a ≤ |A| \left(\max_{a∈A} a\right).$$$

Product inequality:

$$$\left(\min_{a∈A} a\right)^{|A|} ≤ ∏_{a∈A} a ≤ \left(\max_{a∈A} a\right)^{|A|}.$$$

The following bounds for the number of paths and the number of decision variables show how the number of states, nodes, and arcs affects the size of the model.

## Number of Paths

From the definition of the influence diagram, we have the path length of $n=|C∪D|.$ Then, we have the bounds for the number of paths as

$$$\left(\min_{i∈C∪D} |S_i|\right)^n ≤ |𝐒| ≤ \left(\max_{i∈C∪D} |S_i|\right)^n.$$$

We assume that all nodes $i∈C∪D$ are non-trivial. That is, each decision or chance node has at least two states $|S_i|≥2.$ Then, the number of paths is exponential to the path length of $n.$

## Number of Decision Variables

We define the number of decision variables as

$$$∑_{i∈D}|𝐒_{I(i)∪\{i\}}| = ∑_{i∈D} ∏_{j∈I(i)∪\{i\}}|S_j|.$$$

From the definition of the information set, for all $i∈D$ we have $I(i)∪\{i\}⊆C∪D,$ with size $1≤|I(i)∪\{i\}|=|I(i)|+1≤m≤n$ where $m$ denotes the upper bound of influence other nodes have on any decision node. Also, we have the number of decision nodes $0≤|D|≤n.$ Thus, we have the bounds

$$$0 ≤ ∑_{i∈D}|𝐒_{I(i)∪\{i\}}| ≤ |D| \left(\max_{i∈C∪D} |S_j|\right)^{m}.$$$

In the worst case, $m=n$, a decision node is influenced by every other chance and decision node. However, in most practical cases, we have $m < n,$ where decision nodes are influenced only by a limited number of other chance and decision nodes, making models easier to solve.