Multi-Criteria Decision Analysis via Ratio and Difference Judgement

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The point of departure in the present book is that the decision makers, involved in the evaluation of alternatives under conflicting criteria, express their preferential judgement by estimating ratios of subjective values or differences of the corresponding logarithms, the so-called grades. Three MCDA methods are studied in detail: the Simple Multi-Attribute Rating Technique SMART, as well as the Additive and the Multiplicative AHP, both pairwise-comparison methods which do not suffer from the well-known shortcomings of the original Analytic Hierarchy Process. Context-related preference modelling on the basis of psycho-physical research in visual perception and motor skills is extensively discussed in the introductory chapters. Thereafter many extensions of the ideas are presented via case studies in university administration, health care, environmental assessment, budget allocation, and energy planning at the national and the European level. The issues under consideration are: group decision making with inhomogeneous power distributions, the search for a compromise solution, resource allocation and fair distributions, scenario analysis in long-term planning, conflict analysis via the pairwise comparison of concessions, and multi-objective optimization. The final chapters are devoted to the fortunes of MCDA in the hands of its designers. The research started in the late seventies, when I got involved in three different problems: the nomination procedures in a university, the evaluation of alternative energy-research proposals, and the evaluation of non-linear programming software.

Author(s): Freerk A. Lootsma (eds.)
Series: Applied Optimization 29
Edition: 1
Publisher: Springer US
Year: 1999

Language: English
Pages: 286
City: Dordrecht, Netherlands; Boston
Tags: Mathematical Modeling and Industrial Mathematics; Calculus of Variations and Optimal Control; Optimization; Optimization; Business/Management Science, general; Operations Research/Decision Theory

Front Matter....Pages i-xi
Introduction....Pages 1-14
Smart, Direct Rating....Pages 15-52
The AHP, Pairwise Comparisons....Pages 53-92
Scale Sensitivity and Rank Preservation....Pages 93-117
The Alternatives in Perspective....Pages 119-138
Group Decision Making....Pages 139-160
Resource Allocation....Pages 161-193
Scenario Analysis....Pages 195-210
Conflict Analysis and Negotiations....Pages 211-227
Multi-Objective Linear Programming....Pages 229-257
MCDA in the Hands of Its Masters....Pages 259-270
Prospects of MCDA....Pages 271-279
Back Matter....Pages 281-287