Influence of aggregation and measurement scale on ranking a compromise alternative in AHP
AbstractAnalytic Hierarchy Process (AHP) is one of the most popular multi-attribute decision aid methods. However, within AHP, there are several competing preference measurement scales and aggregation techniques. In this paper, we compare these possibilities using a decision problem with an inherent trade-off between two criteria. A decision-maker has to choose among three alternatives: two extremes and one compromise. Six different measurement scales described previously in the literature and the new proposed logarithmic scale are considered for applying the additive and the multiplicative aggregation techniques. The results are compared with the standard consumer choice theory. We find that with the geometric and power scales a compromise is never selected when aggregation is additive and rarely when aggregation is multiplicative, while the logarithmic scale used with the multiplicative aggregation most often selects the compromise that is desirable by consumer choice theory.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 19563.
Date of creation: 20 Dec 2009
Date of revision:
AHP; Multi-criteria Decision analysis;
Other versions of this item:
- Alessio Ishizaka & Dieter Balkenborg & Todd Kaplan, 2005. "Influence of aggregation and measurement scale on ranking a compromise alternative in AHP," Discussion Papers 0506, Exeter University, Department of Economics.
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-16 (All new papers)
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