IDEAS home Printed from
   My bibliography  Save this article

Diminishing Utility Decision Model for Weighting Criteria


  • Jih-Jeng Huang

    () (Department of Computer Science & Information Management, SooChow University No. 56 Kueiyang Street, Section 1, Taipei 100, Taiwan)

  • Masahiro Inuiguchi

    () (Division of Mathematical Social System Science, Department of Systems Innovation, Graduate School of Engineering Science, Osaka University Machikaneyama-cho 1–3, Toyonaka, Osaka 560–8531, Japan)


The analytic hierarchy/network process (analytic hierarchy process (AHP)/analytic network process (ANP)) became the most popular tool for weighting criteria in the field of multiple criteria analysis during the 1980s. However, these models often suffer from criticisms because of their theoretical and practical problems. In this paper, the diminishing utility decision model (DUDM) is proposed in order to retain the pros and avoid the cons of the AHP and ANP for weighting criteria. The DUDM integrates the AHP and the concept of diminishing marginal utility in order to model the main and interaction weights of criteria, respectively. From the results of the numerical examples, it can be seen that the proposed method can solve two major limitations of the ANP. First, the proposed method can significantly reduce the number of questions that are asked in the ANP. Second, the proposed method can ensure convergence in many situations and avoid the problem of the ANP with regard to the absorbing state.

Suggested Citation

  • Jih-Jeng Huang & Masahiro Inuiguchi, 2015. "Diminishing Utility Decision Model for Weighting Criteria," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1263-1284, November.
  • Handle: RePEc:wsi:ijitdm:v:14:y:2015:i:06:n:s0219622015500303
    DOI: 10.1142/S0219622015500303

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Scholten, Marc & Read, Daniel, 2006. "Beyond discounting: the tradeoff model of intertemporal choice," LSE Research Online Documents on Economics 22710, London School of Economics and Political Science, LSE Library.
    2. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2013. "Salience and Consumer Choice," Journal of Political Economy, University of Chicago Press, vol. 121(5), pages 803-843.
    3. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    4. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 1039-1061.
    5. Gang Kou & Yanqun Lu & Yi Peng & Yong Shi, 2012. "Evaluation Of Classification Algorithms Using Mcdm And Rank Correlation," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 197-225.
    6. Li-Lin Rao & Shu Li, 2011. "New paradoxes in intertemporal choice," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(2), pages 122-129, February.
    7. Kou, Gang & Ergu, Daji & Shang, Jennifer, 2014. "Enhancing data consistency in decision matrix: Adapting Hadamard model to mitigate judgment contradiction," European Journal of Operational Research, Elsevier, vol. 236(1), pages 261-271.
    8. Kou, Gang & Lin, Changsheng, 2014. "A cosine maximization method for the priority vector derivation in AHP," European Journal of Operational Research, Elsevier, vol. 235(1), pages 225-232.
    9. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    10. Quattrone, George A. & Tversky, Amos, 1988. "Contrasting Rational and Psychological Analyses of Political Choice," American Political Science Review, Cambridge University Press, vol. 82(3), pages 719-736, September.
    11. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    12. Saaty, Thomas L. & Takizawa, Masahiro, 1986. "Dependence and independence: From linear hierarchies to nonlinear networks," European Journal of Operational Research, Elsevier, vol. 26(2), pages 229-237, August.
    13. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 573-597.
    14. Alessio Ishizaka & Dieter Balkenborg & Todd Kaplan, 2005. "Influence of aggregation and measurement scale on ranking a compromise alternative in AHP," Discussion Papers 0506, University of Exeter, Department of Economics.
    15. Bruce G. S. Hardie & Eric J. Johnson & Peter S. Fader, 1993. "Modeling Loss Aversion and Reference Dependence Effects on Brand Choice," Marketing Science, INFORMS, vol. 12(4), pages 378-394.
    Full references (including those not matched with items on IDEAS)


    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:wsi:ijitdm:v:14:y:2015:i:06:n:s0219622015500303. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.