Multiple criteria decision analysis: state of the art surveys

Cover ......Page 1
Fly title ......Page 2
Series contents ......Page 3
Title ......Page 4
Date-line ......Page 5
Contents ......Page 6
List of Figures ......Page 14
List of Tables ......Page 18
1. Human Reflection about Decision ......Page 22
2. Technical Reflection about Decision: MCDA Researchers before MCDA ......Page 23
3. The Reasons for this Collection of State-of-the-Art Surveys ......Page 25
4.1 Part I: An Overview of MCDA Techniques Today ......Page 26
4.3 Part III: Outranking Methods ......Page 27
4.4 Part IV: Multiattribute Utility and Value Theories ......Page 28
4.5 Part V: Non-Classical MCDA Approaches ......Page 29
4.6 Part VI: Multiobjective Mathematical Programming ......Page 31
4.7 Part VII: Applications ......Page 33
4.8 Part VIII: MCDM Software ......Page 34
References ......Page 35
Part I An Overview of MCDA Techniques Today ......Page 38
1 Paradigms and Challenges (Bernard Roy ) ......Page 40
1. What Are the Expectations that Multicriteria Decision Aiding (MCDA) Responds to? ......Page 41
2. Three Basic Concepts ......Page 44
3. How to Take Into Account Imperfect Knowledge? ......Page 49
4. An Operational Point of View ......Page 51
5. Conclusion ......Page 54
References ......Page 55
Part II Foundations of MCDA ......Page 62
2 Preference Modelling (Meltem Oztiirk, Alexis Tsoukias, Philippe Vincke) ......Page 64
2. Purpose ......Page 65
3. Nature of Information ......Page 67
4. Notation and Basic Definitions ......Page 69
5. Languages ......Page 70
6. Preference Structures ......Page 76
7. Domains and Numerical Representations ......Page 85
8. Logic of Preferences ......Page 93
9. Conclusion ......Page 96
References ......Page 97
3 Conjoint measurement tools for MCDM (Denis Bouyssou, Marc Pirlot) ......Page 110
1. Introduction and Motivation ......Page 111
2. Definitions and Notation ......Page 126
3. The Additive Value Model in the "Rich" Case ......Page 129
4. The Additive Value Model in the "Finite" Case ......Page 139
5. Extensions ......Page 149
References ......Page 156
Part III Outranking Methods ......Page 168
4 ELECTRE Methods (Jose Figueira, Vincent Mousseau, Bernard Roy) ......Page 170
1. Introduction: A Brief History ......Page 171
2. Main Features of ELECTRE Methods ......Page 173
3. A Short Description of ELECTRE Methods ......Page 176
4. Recent Developments and Future Issues ......Page 186
5. Software and Applications ......Page 188
References ......Page 190
5 PROMETHEE Methods (Jean-Pierre Brans, Bertrand Mareschal) ......Page 200
2. Multicriteria Problems ......Page 201
3. The PROMETHEE Preference Modelling Information ......Page 205
4. The PROMETHEE I and II Rankings ......Page 208
5. The GAIA Visual Interactive Module ......Page 212
6. The PROMETHEE VI Sensitivity Tool (The "Human Brain") ......Page 218
7. PROMETHEE V: MCDA under Constraints ......Page 219
8. The PROMETHEE GDSS Procedure ......Page 220
9. The DECISION LAB Software ......Page 223
References ......Page 226
6 Other Outranking Approaches (Jean-Marc Martel, Benedetto Matarazzo) ......Page 234
2. Other Outranking Methods ......Page 235
3. Pairwise Criterion Comparison Approach ......Page 258
4. One Outranking Method for Stochastic Data ......Page 291
5. Conclusions ......Page 296
References ......Page 297
Part IV Multiattribute Utility and Value Theories ......Page 300
7 MAUT - Multiattribute Utility Theory (James S. Dyer) ......Page 302
1. Introduction ......Page 303
2. Preference Representations Under Certainty and Under Risk ......Page 304
3. Ordinal Multiattribute Preference Functions for the Case of Certainty ......Page 310
4. Cardinal Multiattribute Preference Functions for the Case of Risk ......Page 315
5. Measurable Multiattribute Preference Functions for the Case of Certainty ......Page 318
6. The Relationships Among the Multiattribute Preference Functions ......Page 327
7. Concluding Remarks ......Page 329
References ......Page 331
8 UTA Methods (Yannis Siskos, Evangelos Grigoroudis, Nikolaos F. Matsatsinis) ......Page 334
1. Introduction ......Page 335
2. The UTA Method ......Page 339
3. Variants of the UTA Method ......Page 350
4. Applications and UTA-based DSS ......Page 365
5. Concluding Remarks and Future Research ......Page 371
References ......Page 372
9 The Analytic Hierarchy and Analytic Network Processes for the Measurement of Intangible Criteria and for Decision-Making (Thomas L. Saaty) ......Page 382
1. Introduction ......Page 383
2. Pairwise Comparisons: Inconsistency and the Principal Eigenvector......Page 385
3. Stimulus Response and the Fundamental Scale ......Page 391
4. Hospice Decision ......Page 396
5. Rating Alternatives One at a Time in the AHP - Absolute Measurement ......Page 406
6. Paired Comparisons Imply Dependence ......Page 409
7. When is a Positive Reciprocal Matrix Consistent? ......Page 410
8. In the Analytic Hierarchy Process Additive Composition is Necessary ......Page 412
9. Benefits, Opportunities, Costs and Risks ......Page 414
10. On the Admission of China to the World Trade Organization (WTO) ......Page 415
11. The Analytic Network Process (ANP) ......Page 419
12. Two Examples of Estimating Market Share - The ANP with a Single Benefits Control Criterion ......Page 426
13. Outline of the Steps of the ANP ......Page 437
14. Complex Decisions with Dependence and Feedback ......Page 440
15. Conclusions ......Page 442
References ......Page 443
10 On the Mathematical Foundation of MACBETH (Carlos A. Banae Costa, Jean-Marie De Corte, Jean-Claude Vansnick) ......Page 446
1. Introduction ......Page 447
2. Previous Research and Software Evolution ......Page 449
3. Types of Preferential Information ......Page 451
4. Numerical Representation of the Preferential Information ......Page 452
5. Consistency - Inconsistency ......Page 453
6. Consistency Test for Preferential Information ......Page 454
7. Dealing with Inconsistency ......Page 457
8. The MACBETH Scale ......Page 469
9. Discussion About a Scale ......Page 472
10. MACBETH and MCDA ......Page 474
References ......Page 475
Part V Non-Classical MCDA Approaches ......Page 480
11 Dealing with Uncertainties in MCDA (Theodor J. Stewart) ......Page 482
1. What is Uncertainty? ......Page 483
2. Probabilistic Models and Expected Utility ......Page 487
3. Pairwise Comparisons ......Page 491
4. Risk Measures as Surrogate Criteria ......Page 494
5. Scenario Planning and MCDA ......Page 497
6. Implications for Practice ......Page 503
References ......Page 504
12 Choice, Ranking and Sorting in Fuzzy Multiple Criteria Decision Aid (Patrick Meyer, Marc Roubens) ......Page 508
1. Introduction ......Page 509
2. The Data Set ......Page 511
3. Valued Preference Relation and Outranking Relation ......Page 512
4. Aggregation Procedures ......Page 515
5. The Sorting Problem ......Page 519
6. The Tomaso Method ......Page 520
7. The Choice Problem ......Page 539
8. Conclusion ......Page 540
References ......Page 541
13 Decision Rule Approach (Salvatore Greco, Benedetto Matarazzo, Roman Slowinski) ......Page 544
1. Introduction ......Page 545
2. Dominance-based Rough Set Approach (DRSA) to Multiple-criteria Classification ......Page 548
3. Variable-Consistency Dominance-Based Rough Set Approach (VC-DRSA) ......Page 562
4. Induction of Decision Rules from Rough Approximations of Upward and Downward Unions of Decision Classes ......Page 564
5. Extensions of DRSA ......Page 573
6. DRSA for Multiple-criteria Choice and Ranking ......Page 581
7. Conclusions ......Page 592
References ......Page 594
14 Fuzzy Measures and Integrals in MCDA (Michel Grabisch, Christophe Labreuche) ......Page 600
1. Introduction ......Page 601
2. Measurement Theoretic Foundations ......Page 603
3. Unipolar Scales ......Page 607
4. Bipolar Scales ......Page 620
5. Ordinal Scales ......Page 632
References ......Page 641
15 Verbal Decision Analysis (Helen Moshkovich, Alexander Mechitov, David Olson) ......Page 646
2. Main Principles of Verbal Decision Analysis ......Page 647
3. Decision Methods for Multicriteria Alternatives Ranking ......Page 652
4. Decision Methods for Multicriteria Alternatives' Classification ......Page 662
5. Place of Verbal Decision Analysis in MCDA ......Page 665
6. Conclusion ......Page 670
References ......Page 671
Part VI Multiobjective Mathematical Programming ......Page 676
16 Interactive Methods (Pekka Korhonen) ......Page 678
1. Introduction ......Page 679
2. Basic Definitions and Some Theory ......Page 680
3. Principles for Implementing Interactive Methods ......Page 682
4. Generating Nondominated Solutions ......Page 686
5. Solving Multiple Objective Problems ......Page 689
6. Final Solution ......Page 693
7. Examples of Software Systems: VIG and VIMDA ......Page 694
8. Concluding Remarks ......Page 698
References ......Page 699
17 Multiobjective Programming (Matthias Ehrgott, Margaret M. Wiecek) ......Page 704
1. Introduction ......Page 705
2. Problem Formulation and Solution Concepts ......Page 706
3. Properties of the Solution Sets ......Page 710
4. Conditions for Efficiency ......Page 712
5. Generation of the Solution Sets ......Page 713
6. Approximation of the Pareto Set ......Page 729
7. Specially Structured Problems ......Page 733
8. Current and Future Research Directions ......Page 744
References ......Page 745
18 Multiple Objective Linear Programming with Fuzzy Coefficients (Masahiro Inuiguchi) ......Page 760
1. Introduction ......Page 761
2. Problem Statement and Approaches ......Page 762
3. Modality Constrained Programming Approach ......Page 768
4. Modality Goal Programming ......Page 786
5. Modal Efficiency Approach ......Page 791
References ......Page 794
19 MCDM Location Problems (Stefan Nickel, Justo Puerto, Antonio M. Rodriguez-Chia) ......Page 798
1. Introduction ......Page 799
2. Location Problems ......Page 801
3. Continuous Multicriteria Location Problems ......Page 804
4. Multicriteria Network Location Problems ......Page 813
5. Multicriteria Discrete Location Problems ......Page 820
References ......Page 824
Part VII Applications ......Page 834
20 Multicriteria Decision Aid/Analysis in Finance (Jaap Spronk, Ralph E. Steuer, Constantin Zopounidis) ......Page 836
1. Introduction ......Page 837
2. Financial Decision Making ......Page 838
3. MCDA in Portfolio Decision-Making Theory ......Page 856
4. MCDA in Discrete Financial Decision-Making Problems ......Page 872
5. Conclusions and Future Perspectives ......Page 885
References ......Page 886
21 MCDA and Energy Planning (Danae Diakoulaki, Carlos Henggeler Antunes, Antonio Gomes Martins) ......Page 896
1. Introduction ......Page 897
2. Multiobjective Programming Models for Energy Planning ......Page 900
3. Energy Planning Decisions with Discrete Alternatives ......Page 911
4. Conclusions ......Page 927
References ......Page 928
22 Multicriteria Analysis in Telecommunication Network Planning and Design - Problems and Issues (Joao Climaco, Jose Craveirinha) ......Page 936
2. Overview of Current Evolutions in Telecommunication Networks and Services ......Page 937
3. Multicriteria Analysis in Telecommunication Network Planning and Design ......Page 945
4. Review and Discussion of Applications of MA to Telecommunication Network Planning ......Page 949
5. Future Trends ......Page 978
References ......Page 981
23 Multiple Criteria Decision Analysis and Sustainable Development (Giuseppe Munda) ......Page 990
1. The Concept of Sustainable Development ......Page 991
2. Measuring Sustainability: The Issue of Sustainability Assessment Indexes ......Page 995
3. A Defensible Axiomatic Setting for Sustainability Composite Indicators ......Page 1000
4. Warning! Not Always Rankings Have to Be Trusted... ......Page 1003
5. The Issue of the "Quality of the Social Decision Processes" ......Page 1008
6. The Issue of Consistency in Multi-Criteria Evaluation of Sustainability Policies ......Page 1013
7. Conclusion ......Page 1017
References ......Page 1018
Part VIII MCDM Software ......Page 1024
24 Multiple Criteria Decision Support Software (H. Roland Weistroffer, Charles H. Smith, Subhash N. Narula) ......Page 1026
2. Software Overview ......Page 1027
3. Concluding Remarks ......Page 1046
References ......Page 1048
Contributing Authors ......Page 1056
Index ......Page 1072