IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v10y2022i12p2100-d840885.html
   My bibliography  Save this article

Bonferroni Weighted Logarithmic Averaging Distance Operator Applied to Investment Selection Decision Making

Author

Listed:
  • Victor G. Alfaro-Garcia

    (Facultad de Contaduría y Ciencias Administrativas, Universidad Michoacana de San Nicolas de Hidalgo, Gral. Francisco J. Múgica S/N, C.U., Morelia 58030, Mexico)

  • Fabio Blanco-Mesa

    (Facultad de Ciencias Económicas y Administrativas, Escuela de Administración de Empresas, Universidad Pedagógica y Tecnológica de Colombia, Tunja 150001, Colombia)

  • Ernesto León-Castro

    (Faculty of Economics and Administrative Sciences, Universidad Católica de la Santísima Concepción, Av. Alonso de Ribera 2850, Concepción 4030000, Chile)

  • Jose M. Merigo

    (Department of Management Control and Information Systems, School of Economic and Business, University of Chile, Av. Diagonal Paraguay, 257, Santiago 8330015, Chile)

Abstract

Distance measures in ordered weighted averaging (OWA) operators allow the modelling of complex decision making problems where a set of ideal values or characteristics are required to be met. The objective of this paper is to introduce extended distance measures and logarithmic OWA-based decision making operators especially designed for the analysis of financial investment options. Based on the immediate weights, Bonferroni means and logarithmic averaging operators, in this paper we introduce the immediate weights logarithmic distance (IWLD), the immediate weights ordered weighted logarithmic averaging distance (IWOWLAD), the hybrid weighted logarithmic distance (HWLD), the Bonferroni ordered weighted logarithmic averaging distance (B-OWLAD) operator, the Bonferroni immediate weights ordered weighted logarithmic averaging distance (B-IWOWLAD) operator and the Bonferroni hybrid weighted logarithmic distance (HWLD). A financial decision making illustrative example is proposed, and the main benefits of the characteristic design of the introduced operators is shown, which include the analysis of the interrelation between the modelled arguments required from the decision makers and the stakeholders, and the comparison to an ideal set of characteristics that the possible companies in the example must portray. Moreover, some families, particular cases and brief examples of the proposed operators, are studied and presented. Finally, among the main advantages are the modeling of diverse perspectives, attitudinal characteristics and complex scenarios, through the interrelation and comparison between the elements with an ideal set of characteristics given by the decision makers and a set of options.

Suggested Citation

  • Victor G. Alfaro-Garcia & Fabio Blanco-Mesa & Ernesto León-Castro & Jose M. Merigo, 2022. "Bonferroni Weighted Logarithmic Averaging Distance Operator Applied to Investment Selection Decision Making," Mathematics, MDPI, vol. 10(12), pages 1-13, June.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:12:p:2100-:d:840885
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/10/12/2100/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/10/12/2100/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luis F. Espinoza-Audelo & Maricruz Olazabal-Lugo & Fabio Blanco-Mesa & Ernesto León-Castro & Victor Alfaro-Garcia, 2020. "Bonferroni Probabilistic Ordered Weighted Averaging Operators Applied to Agricultural Commodities’ Price Analysis," Mathematics, MDPI, vol. 8(8), pages 1-16, August.
    2. Rodrigo Gómez Monge & Evaristo Galeana Figueroa & Víctor G. Alfaro-García & José M. Merigó & Ronald R. Yager, 2021. "Variances and Logarithmic Aggregation Operators: Extended Tools for Decision-Making Processes," Mathematics, MDPI, vol. 9(16), pages 1-19, August.
    3. Fabio Blanco-Mesa & Ernesto León-Castro & Jorge Romero-Muñoz, 2021. "Pythagorean Membership Grade Aggregation Operators: Application in Financial knowledge," Mathematics, MDPI, vol. 9(17), pages 1-15, September.
    4. Sondra G. Beverly & Marianne A. Hilgert & Jeanne M. Hogarth, 2003. "Patterns of financial behaviors: implications for community educators and policymakers," Proceedings 883, Federal Reserve Bank of Chicago.
    5. Alex Bennet & David Bennet, 2008. "The Decision-Making Process in a Complex Situation," International Handbooks on Information Systems, in: Handbook on Decision Support Systems 1, chapter 1, pages 3-20, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Umut Asan & Ayberk Soyer, 2022. "A Weighted Bonferroni-OWA Operator Based Cumulative Belief Degree Approach to Personnel Selection Based on Automated Video Interview Assessment Data," Mathematics, MDPI, vol. 10(9), pages 1-33, May.
    2. Carolyn Mann & Kate Sherren, 2018. "Holistic Management and Adaptive Grazing: A Trainers’ View," Sustainability, MDPI, vol. 10(6), pages 1-19, June.
    3. Enrique Marshall, 2015. "Reflexiones sobre la Práctica del Ahorro en Chile," Economic Policy Papers Central Bank of Chile 54, Central Bank of Chile.
    4. García-Pérez-de-Lema, Domingo & Ruiz-Palomo, Daniel & Diéguez-Soto, Julio, 2021. "Analysing the roles of CEO's financial literacy and financial constraints on Spanish SMEs technological innovation," Technology in Society, Elsevier, vol. 64(C).
    5. Murat Özkaya & Burhaneddin İzgi & Matjaž Perc, 2022. "Axioms of Decision Criteria for 3D Matrix Games and Their Applications," Mathematics, MDPI, vol. 10(23), pages 1-20, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:10:y:2022:i:12:p:2100-:d:840885. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.