Aggregation of Priorities in Multi-Criteria Decision Analysis (MCDA): Connecting Decision Spaces in the Cognitive Space
- 1 Faculty of Management, University of Lethbridge, Lethbridge, Canada
Abstract
In Multi-Criteria Decision Analysis, the well-known weighted sum method for aggregating normalised relative priorities ignores the unit of scale that may vary across the criteria and thus causes rank reversals. A new aggregation rule that explicitly includes the norms of priority vectors is derived and shown as a remedy for it. An algorithmic procedure is presented to demonstrate how it can as well be used in the Analytic Hierarchy Process when norms of priority vectors are not readily available. Also, recursion relations connecting two decision spaces with added or deleted alternatives give an opportunity to extend the idea of connectivity to a new concept of cognitive space. Expanded analytic modelling embracing multiple decision spaces or scenarios may assist in detecting deficiencies in analytic models and also grasping the big picture in decision making.
- Belton, V. and Stewart, T.J. (2002) Multiple Criteria Decision Analysis: An Integrated Approach. Springer-Science + Business Media, B.V., Berlin, Heidelberg.
- Bouyssou, D., Marchant, T., Pirlot, M., Tsoukias, A. and Vincke, P. (2006) Evaluation and Decision Models With Multiple Criteria. Springer-Science + Business Media Inc., New York.
- Fishburn, P.C. (1967) Additive Utilities with Incomplete Product Set: Applications to Priorities and Assignments. ORSA Publication, Baltimore.
- Saaty, T.L. (1980) The Analytic Hierarchy Process. McGraw-Hill, New York.
- Saaty, T.L. (1995) Decision Making for Leaders. RWS Publications, Pittsburgh.
- Maleki, H. and Zahir, S. (2013) A Comprehensive Literature Review of the Rank Reversal Phenomenon in the Analytic Hierarchy Process. Journal of Multi-Criteria Decision Analysis, 20, 141-155. http://dx.doi.org/10.1002/mcda.1479
- Zahir, S. (2009) Normalisation and Rank Reversals in the Additive Analytic Hierarchy Process: A New Analysis. International Journal of Operational Research, 4, 446-467. http://dx.doi.org/10.1504/IJOR.2009.023538
- Zahir, S. (1999) Geometry of Decision Making and the Vector Space Formulation of the Analytic Hierarchy Process (AHP). European Journal of Operational Research, 112, 373-396. http://dx.doi.org/10.1016/S0377-2217(98)00020-4
- Choo, E.W. and Wedley, W.C. (2004) A Common Framework for Deriving Preference Values from Pairwise Comparison Matrices. Computers and Operations Research, 3, 893-908. http://dx.doi.org/10.1016/S0305-0548(03)00042-X
- Triantaphyllou, E. and Sanchez, A. (1997) A Sensitivity Analysis Approach for Some Deterministic Multi-Criteria Decision-Making Methods. Decision Sciences, 28, 151-194. http://dx.doi.org/10.1111/j.1540-5915.1997.tb01306.x
- Schoner, B. and Wedley, W.C. (1989) Ambiguous Criteria Weights in AHP: Consequences and Solutions. Decision Sciences, 20, 462-475. http://dx.doi.org/10.1111/j.1540-5915.1989.tb01561.x
- Choo, E.W., Schoner, B. and Wedley, W.C. (1999) Interpretation of Criteria Weights in Multicriteria Decision Making. Computers & Industrial Engineering, 37, 527-541. http://dx.doi.org/10.1016/S0360-8352(00)00019-X
- Zahir, S. (2006) Eliciting Ratio Preferences for the Analytic Hierarchy Process with Visual Interfaces: A New Mode of Preference Measurement. International Journal of Information Technology and Decision Making, 5, 245-262. http://dx.doi.org/10.1142/S0219622006001939