IDEAS home Printed from https://ideas.repec.org/p/alc/alcddt/8-02.html
   My bibliography  Save this paper

Another potential strong shortcoming of AHP

Author

Listed:
  • Joaquín Pérez, José L. Jimeno, Ethel Mokotoff

    (Departamento de Fundamentos de Economía. Universidad de Alcalá (Spain))

Abstract

In the last twenty years many features of Saaty's Analytical Hierarchy Process (AHP) have been criticised, especially the additive hierarchical composition of conventional AHP, which leads to the possibility of occurrence of the Rank Reversal phenomenon (adding an irrelevant alternative may cause a reversal in the ranking at the top). In the context of a variable number of alternatives this rank reversal possibility is likely to be a shortcoming of the aggregation method, since the global priorities obtained and the corresponding rankings can be seen, to some extent, as arbitrary. In this paper we show another feature of AHP which may be, and in many application contexts will indeed be, an even stronger shortcoming of the method. It consists in the fact that the addition of indifferent criteria (for which all alternatives perform equally) causes a significant alteration of the aggregated priorities of alternatives, with important consequences. Although not in three-level hierarchies, in more complex hierarchies rank reversal may happen. Since in almost all applications of AHP the set of criteria is not fixed ex-ante but is variable and is constructed in accordance with reasons of relevance and simplicity, almost all applications of AHP are potentially flawed.

Suggested Citation

  • Joaquín Pérez, José L. Jimeno, Ethel Mokotoff, 2001. "Another potential strong shortcoming of AHP," Doctorado en Economía- documentos de trabajo 8/02, Programa de doctorado en Economía. Universidad de Alcalá., revised 01 Jun 2002.
  • Handle: RePEc:alc:alcddt:8/02
    as

    Download full text from publisher

    File URL: http://www2.uah.es/docecon/documentos/DT8.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James S. Dyer, 1990. "Remarks on the Analytic Hierarchy Process," Management Science, INFORMS, vol. 36(3), pages 249-258, March.
    2. Ernest H. Forman & Saul I. Gass, 2001. "The Analytic Hierarchy Process---An Exposition," Operations Research, INFORMS, vol. 49(4), pages 469-486, August.
    3. Joaquin Pérez, 1995. "Some Comments on Saaty's AHP," Management Science, INFORMS, vol. 41(6), pages 1091-1095, June.
    4. Thomas L. Saaty, 1990. "An Exposition of the AHP in Reply to the Paper "Remarks on the Analytic Hierarchy Process"," Management Science, INFORMS, vol. 36(3), pages 259-268, March.
    5. James S. Dyer, 1990. "A Clarification of "Remarks on the Analytic Hierarchy Process"," Management Science, INFORMS, vol. 36(3), pages 274-275, March.
    6. Saaty, Thomas L & Vargas, Luis G, 1984. "The legitimacy of rank reversal," Omega, Elsevier, vol. 12(5), pages 513-516.
    7. Belton, Valerie & Gear, Tony, 1983. "On a short-coming of Saaty's method of analytic hierarchies," Omega, Elsevier, vol. 11(3), pages 228-230.
    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. Bana e Costa, Carlos A. & Vansnick, Jean-Claude, 2008. "A critical analysis of the eigenvalue method used to derive priorities in AHP," European Journal of Operational Research, Elsevier, vol. 187(3), pages 1422-1428, June.
    2. Jain, Bharat A. & Nag, Barin N., 1996. "A decision-support model for investment decisions in new ventures," European Journal of Operational Research, Elsevier, vol. 90(3), pages 473-486, May.
    3. Zahir, Sajjad, 1999. "Geometry of decision making and the vector space formulation of the analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 112(2), pages 373-396, January.
    4. Leung, Lawrence C. & Cao, Dong, 2001. "On the efficacy of modeling multi-attribute decision problems using AHP and Sinarchy," European Journal of Operational Research, Elsevier, vol. 132(1), pages 39-49, July.
    5. Alessio Ishizaka & Sajid Siraj, 2020. "Interactive consistency correction in the analytic hierarchy process to preserve ranks," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 43(2), pages 443-464, December.
    6. Majumdar, Abhijit & Tiwari, Manoj Kumar & Agarwal, Aastha & Prajapat, Kanika, 2021. "A new case of rank reversal in analytic hierarchy process due to aggregation of cost and benefit criteria," Operations Research Perspectives, Elsevier, vol. 8(C).
    7. Liu, Qizhi, 2022. "Identifying and correcting the defects of the Saaty analytic hierarchy/network process: A comparative study of the Saaty analytic hierarchy/network process and the Markov chain-based analytic network ," Operations Research Perspectives, Elsevier, vol. 9(C).
    8. Millet, Ido & Saaty, Thomas L., 2000. "On the relativity of relative measures - accommodating both rank preservation and rank reversals in the AHP," European Journal of Operational Research, Elsevier, vol. 121(1), pages 205-212, February.
    9. Dong, Yucheng & Xu, Yinfeng & Li, Hongyi & Dai, Min, 2008. "A comparative study of the numerical scales and the prioritization methods in AHP," European Journal of Operational Research, Elsevier, vol. 186(1), pages 229-242, April.
    10. Höfer, Tim & Sunak, Yasin & Siddique, Hafiz & Madlener, Reinhard, 2016. "Wind farm siting using a spatial Analytic Hierarchy Process approach: A case study of the Städteregion Aachen," Applied Energy, Elsevier, vol. 163(C), pages 222-243.
    11. Michele Bernasconi & Christine Choirat & Raffaello Seri, 2010. "The Analytic Hierarchy Process and the Theory of Measurement," Management Science, INFORMS, vol. 56(4), pages 699-711, April.
    12. A Ishizaka & D Balkenborg & T Kaplan, 2011. "Influence of aggregation and measurement scale on ranking a compromise alternative in AHP," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 700-710, April.
    13. Zanakis, Stelios H. & Solomon, Anthony & Wishart, Nicole & Dublish, Sandipa, 1998. "Multi-attribute decision making: A simulation comparison of select methods," European Journal of Operational Research, Elsevier, vol. 107(3), pages 507-529, June.
    14. Ardalan Bafahm & Minghe Sun, 2019. "Some Conflicting Results in the Analytic Hierarchy Process," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 465-486, March.
    15. Van den Honert, R. C., 1998. "Stochastic group preference modelling in the multiplicative AHP: A model of group consensus," European Journal of Operational Research, Elsevier, vol. 110(1), pages 99-111, October.
    16. Stam, Antonie & Duarte Silva, A. Pedro, 2003. "On multiplicative priority rating methods for the AHP," European Journal of Operational Research, Elsevier, vol. 145(1), pages 92-108, February.
    17. Bentes, Alexandre Veronese & Carneiro, Jorge & da Silva, Jorge Ferreira & Kimura, Herbert, 2012. "Multidimensional assessment of organizational performance: Integrating BSC and AHP," Journal of Business Research, Elsevier, vol. 65(12), pages 1790-1799.
    18. Benedetto Barabino & Nicola Aldo Cabras & Claudio Conversano & Alessandro Olivo, 2020. "An Integrated Approach to Select Key Quality Indicators in Transit Services," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 1045-1080, June.
    19. Saul I. Gass, 2005. "Model World: The Great Debate—MAUT Versus AHP," Interfaces, INFORMS, vol. 35(4), pages 308-312, August.
    20. R. Sundarraj, 2006. "A model for standardizing human decisions concerning service-contracts management," Annals of Operations Research, Springer, vol. 143(1), pages 171-189, March.

    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:alc:alcddt:8/02. 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: Juan Muro (email available below). General contact details of provider: https://edirc.repec.org/data/fcalces.html .

    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.