This paper critically reviews practical difficulties inherent in some of the existing multi-criteria decision-making methods. The paper also emphasizes why a benchmark decision situation is essential in assessing the capabilities of any multi-criteria decision-making method. The capability is in terms of accuracy in modeling the human decision-making process. Most multi-criteria decision-making methods consist of two important steps. The first step involves elicitation of preferences from the decision-maker on various criteria and alternatives of the problem. In the second step, the preferences defined by the decision-maker are aggregated. The overall score generated after aggregation is used in rank order calculation and final selection. However, if the prescriptions of multi-criteria decision-making method do not resemble actual or real decision of the very same decision-maker, then multi-criteria decision-making method failed in either capturing the true preferences of the decision-maker or in aggregating these preferences as per the expectations of the decision-maker. This paper discusses some of the latest theories of decision-making and provides three important directions to improve the descriptive aspects of multi-criteria decision analysis.
Keywords: Multi-Criteria Decision Analysis, behavioral decision making, prospect theory, complexity theory, range sensitivity
@article{RO_2022__56_4_2221_0,
author = {Dhurkari, Ram Kumar},
title = {MCDM methods: {Practical} difficulties and future directions for improvement},
journal = {RAIRO. Operations Research},
pages = {2221--2233},
year = {2022},
publisher = {EDP-Sciences},
volume = {56},
number = {4},
doi = {10.1051/ro/2022060},
mrnumber = {4456295},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2022060/}
}
TY - JOUR AU - Dhurkari, Ram Kumar TI - MCDM methods: Practical difficulties and future directions for improvement JO - RAIRO. Operations Research PY - 2022 SP - 2221 EP - 2233 VL - 56 IS - 4 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2022060/ DO - 10.1051/ro/2022060 LA - en ID - RO_2022__56_4_2221_0 ER -
%0 Journal Article %A Dhurkari, Ram Kumar %T MCDM methods: Practical difficulties and future directions for improvement %J RAIRO. Operations Research %D 2022 %P 2221-2233 %V 56 %N 4 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2022060/ %R 10.1051/ro/2022060 %G en %F RO_2022__56_4_2221_0
Dhurkari, Ram Kumar. MCDM methods: Practical difficulties and future directions for improvement. RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 2221-2233. doi: 10.1051/ro/2022060
[1] , and , A tractable method to measure utility and loss aversion under prospect theory. J. Risk Uncertainty 36 (2008) 245–266. | Zbl | DOI
[2] , Primacy effects in personality impression formation using a generalized order effect paradigm. J. Pers. Soc. Psychol. 2 (1965) 1–9. | DOI
[3] , Component ratings in impression formation. Psychonomic Sci. 6 (1966) 279–280. | DOI
[4] , Integration theory and attitude change. Psychol. Rev. 78 (1971) 171–206. | DOI
[5] and , Effect of stimulus inconsistency and discounting instructions in personality impression formation. J. Pers. Soc. Psychol. 2 (1965) 531–539. | DOI
[6] , Forming impressions of personality. J. Abnormal Soc. Psychol. 41 (1946) 258–290. | DOI
[7] and , The MACBETH approach: basic ideas, software and an application. In: Advances in Decision Analysis, edited by and . Kluwer Academic, Dordrecht (1997) 131–157. | Zbl
[8] , Thirty years of prospect theory in economics: a review and assessment. J. Econ. Perspect. 27 (2013) 173–196. | DOI
[9] and , A contingency model for the selection of decision strategies. Acad. Manage. Rev. 3 (1978) 439–449. | DOI
[10] and , Investigating the effect of stimulus range on attribute weight. J. Exp. Psychol. Human Percept. Perform. 17 (1991) 571–585. | DOI
[11] , , and , PROMETHEE: a comprehensive literature review on methodologies and applications. Eur. J. Oper. Res. 100 (2010) 198–215. | Zbl | DOI
[12] and , On a short-coming of Saaty’s method of analytic hierarchies. Omega 11 (1983) 228–230. | DOI
[13] , , and , Modeling positive and negative information in possibility theory. Int. J. Intell. Syst. 23 (2008) 1094–1118. | Zbl | DOI
[14] and , Effects of prior knowledge, experience, and phase of the choice process on the choice process and on consumer decision processes: a protocol analysis. J. Consum. Res. 7 (1980) 141–154. | DOI
[15] , and , Constructive consumer choice processes. J. Consum. Res. 25 (1998) 187–217. | DOI
[16] , and , Additive utility in prospect theory. Manage. Sci. 55 (2009) 863–873. | Zbl | DOI
[17] , , PROMETHEE methods. In: Multiple Criteria Decision Analysis: State of the Art Surveys, edited by , and . Springer, New York (2005) 163–195. | Zbl
[18] , Dimensional Analysis. Yale University Press, New Haven, CT (1922). | Zbl | JFM
[19] and , The affect system: architecture and operating characteristics. Curr. Directions Psychol. Sci. 8 (1999) 133–137. | DOI
[20] , and , Beyond bipolar conceptualizations and measures: the case of attitudes and evaluative space. Personal Soc. Psychol. Rev. 1 (1997) 3–25. | DOI
[21] and , Comparison-induced decoy effects. Memory Cogn. 33 (2005) 332–343. | DOI
[22] , , and , How to support the application of multiple criteria decision analysis? Let us start with a comprehensive taxonomy. Omega 96 (2020) 102261. | DOI
[23] and , Linear models in decision making. Psychol. Bull. 81 (1974) 95–106. | DOI
[24] and , Development, test and comparison of two Multiple Criteria Decision Analysis (MCDA) models: a case of healthcare infrastructure location. Expert Syst. App. 42 (2015) 6717–6727. | DOI
[25] , Inconsistent tradeoffs between attributes: new evidence in preference assessment biases. Manage. Sci. 39 (1993) 1382–1395. | Zbl | DOI
[26] , Bi-matching: a new preference assessment method to reduce compatibility effects. Manage. Sci. 43 (1997) 640–658. | Zbl | DOI
[27] , and , The effects of endowment and loss aversion in managerial stock option valuation. Acad. Manage. J. 50 (2007) 191–208. | DOI
[28] and , Similarity in context: cognitive representation and violation of preference and perceptual invariance in consumer choice. Organiz. Behav. Human Decis. Processes 67 (1996) 280–293. | DOI
[29] , MCGL: a new reference dependent MCDM method. Int. J. Oper. Res. 36 (2019) 477–495. | MR | DOI
[30] and , MCGL: a new method for modelling the choice behavior of the decision maker. In: Proceedings of Decision Sciences Institute’s 44th Annual Meeting at Baltimore, USA (2013).
[31] and , A critique of the analytic hierarchy process. Technical Report 84/85–4–24, Department of Management, The University of Texas at Austin, Austin, TX, USA (1985).
[32] , Use of nonlinear, non-compensatory models as a function of task and amount of information. Organiz. Behav. Human Perform. 6 (1971) 1–27. | DOI
[33] and , Behavioral decision theory: processes of judgment and choice. Ann. Rev. Psychol. 32 (1981) 53–88. | DOI
[34] , , and , Multiple attribute decision making considering aspiration-levels: a method based on prospect theory. Comput. Ind. Eng. 65 (2013) 341–350. | DOI
[35] , and , Editors. Multiple Criteria Decision Analysis: State of the Art Surveys. Springer-Verlag, New York (2016). | MR | Zbl
[36] , Range sensitivity of attribute weights in multi-attribute value models. Organiz. Behav. Human Decis. Processes 62 (1995) 252–266. | DOI
[37] and , Strategy compatibility, scale compatibility, and the prominence effect. J. Exp. Psychol. Human Percept. Perform. 19 (1993) 580–597. | DOI
[38] and , The analytic hierarchy process – an exposition. Oper. Res. 49 (2001) 469–486. | MR | Zbl | DOI
[39] , and , Individual-level loss aversion in riskless and risky choices. Theory Decis. 92 (2022) 599–624. | MR | Zbl | DOI
[40] , Attribute scatter and decision outcome: judgment versus choice. Organiz. Behav. Human Decis. Processes 62 (1995) 113–122. | DOI
[41] and , Behavioral multi-criteria decision analysis: further elaborations on the TODIM method. Found. Comput. Decis. Sci. 37 (2012) 3–8. | MR | Zbl | DOI
[42] and , TODIM: basics and application to multicriteria ranking of projects with environmental impacts. Found. Comput. Decis. Sci. 16 (1992) 113–127. | Zbl
[43] and , An application of the TODIM method to the multicriteria rental evaluation of residential properties. Eur. J. Oper. Res. 193 (2009) 204–211. | Zbl | DOI
[44] and , A decade of application of the Choquet and Sugeno integrals in multi-criteria decision aid. Ann. Oper. Res. 175 (2010) 247–286. | MR | Zbl | DOI
[45] and , The threat of biases in environmental decision analysis. Research reports, E12, Systems Analysis Laboratory, Helsinki, Finland. Association for Consumer Research, Ann Arbor, MI (2003) 431–437. http://www.e-reports.sal.hut.fi.
[46] , Information processing strategies in riskless preference reversals: the prominence effect. Organiz. Behav. Human Decis. Processes 59 (1994) 1–26. | DOI
[47] and , Adapting cutoffs to the choice environment: the effects of attribute correlation and reliability. J. Consum. Res. 18 (1991) 346–357. | DOI
[48] , and , Adding asymmetrically dominated alternatives: violations of regularity and the similarity hypothesis. J. Consum. Res. 9 (1982) 90–98. | DOI
[49] and , Multiple Attribute Decision Making-Methods and Applications, A State-of-the-Art Survey. Springer-Verlag, New York (1981). | MR | Zbl
[50] and , Preference disaggregation: 20 years of MCDA experience, invited review. Eur. J. Oper. Res. 130 (2001) 233–245. | Zbl | DOI
[51] and , Decision Making: A Psychological Analysis of Conflict, Choice, and Commitment. Free Press, New York (1977).
[52] and , Product familiarity and learning new information. J. Consum. Res. 11 (1984) 542–550. | DOI
[53] , Logical formalisms for representing bipolar preferences. Int. J. Intell. Syst. 23 (2008) 985–997. | Zbl | DOI
[54] and , Norm theory: comparing reality to its alternatives. Psychol. Rev. 93 (1986) 136–153. | DOI
[55] , Context effects in impression formation: the weighted average versus the meaning change formulation. J. Pers. Soc. Psychol. 19 (1971) 92–99. | DOI
[56] , The Origins of Order. Oxford University Press, New York, (1993). | DOI
[57] , Common mistakes in making value trade-offs. Oper. Res. 50 (2002) 935–945. | Zbl | DOI
[58] and , Decisions with Multiple Objectives. Wiley, New York (1976). | MR | Zbl
[59] and , An investigation of utility-directed cut off selection. J. Consum. Res. 14 (1987) 240–255. | DOI
[60] , and , Multiple Criteria Decision Making: From Early History to the 21st Century. World Scientific, Singapore (2011). | DOI
[61] and , Prospect theory and stochastic multicriteria acceptability analysis (SMAA). Omega 37 (2009) 961–971. | DOI
[62] and , Combining visual and verbal information in an impression formation task. J. Pers. Soc. Psychol. 9 (1968) 1–6. | DOI
[63] , Normative and Descriptive aspects of decision making. In: Multi-criteria Decision Making, Advances in MCDM Models: Algorithms, Theory and Applications: 5.1–5.24, edited by , and . Kluwer Academic Publishing, Boston, (1999). | MR | Zbl
[64] , Individual Choice Behavior. John Wiley, New York (1959). | MR | Zbl
[65] , , , , and , Multiple criteria decision-making techniques and their applications – a review of the literature from 2000 to 2014. Econ. Res. Ekon. Istraž. 28 (2015) 516–571.
[66] and , Empirical generalizations in the modeling of consumer choice. Marketing Sci. 14 (1995) 180–189. | DOI
[67] , A cross-validity comparison of rating-based and choice-based conjoint analysis models. Int. J. Res. Marketing 21 (2004) 299–312. | DOI
[68] and , The boundaries of loss aversion. J. Marketing Res. 42 (2005) 119–128. | DOI
[69] and , Differential weighting in integration theory. J. Exp. Psychol. 89 (1971) 152–161. | DOI
[70] , Task Complexity and contingent processing in decision making: an information search and protocol analysis. Organiz. Behav. Human Perform. 16 (1976) 366–387. | DOI
[71] , Contingent decision behavior. Psychol. Bull. 92 (1982) 382–402. | DOI
[72] , and , Exploring predecisiohal behavior: an alternative approach to decision research. Organiz. Behav. Human Perform. 22 (1978) 17–44. | DOI
[73] , and , Behavioral decision research: a constructive processing perspective. Ann. Rev. Psychol. 43 (1992) 87–131. | DOI
[74] , and , Using a choquet integral-based approach for incorporating decision-maker’s preference judgments in a data envelopment analysis model. Eur. J. Oper. Res. 284 (2020) 1016–1030. | MR | Zbl | DOI
[75] and , Examining models of nondominated decoy effects across judgment and choice. Organiz. Behav. Human Decis. Processes 81 (2000) 300–328. | DOI
[76] and , Testing alternative explanations of phantom decoy effects. J. Behav. Decis. Making 20 (2007) 323–341. | DOI
[77] and , Is tiger woods loss averse? Persistent bias in the face of experience, competition, and high stakes. Am. Econ. Rev. 101 (2011) 129–157. | DOI
[78] and , On the convergence of multi attribute weighting methods. Eur. J. Oper. Res. 129 (2001) 569–585. | MR | Zbl | DOI
[79] and , A brief history of research on phantom alternatives: evidence for seven empirical generalizations about phantoms. Basic Appl. Soc. Psychol. 13 (1992) 103–122. | DOI
[80] , and , Multi-alternative decision field theory: a dynamic connectionist model of decision making. Psychol. Rev. 108 (2001) 370–392. | DOI
[81] , Classement et choix en presence de points de vue multiples (la methode ELECTRE). Revue Francaise d’Informatique et de Recherche Operationnelle 8 (1968) 57–75.
[82] , From optimization to multicriteria decision aid: three main operational attitudes. In: Multiple Criteria Decision Making, edited by and . Lecture Notes in Economics and Mathematical Systems. Vol. 130. Springer, Berlin (1976) 1–32. | Zbl | DOI
[83] , Multicriteria Methodology for Decision Aiding. Kluwer Academic Publishers, Dordrecht, The Netherlands (1996). | Zbl | DOI
[84] , A scaling method for priorities in hierarchical structures. Math. Psychol. 15 (1977) 234–281. | MR | Zbl | DOI
[85] and , Testing prospect theory in a deterministic multiple criteria decision-making environment. Decis. Sci. 24 (1993) 279–294. | DOI
[86] , The expected utility model: its variants, purposes, evidence and limitations. J. Econ. Literature 20 (1982) 529–563.
[87] and , Eine Untersuchung zur sozialen Urteilsbildung. II. Bemerkungen zur verschiedenen konkurrierenden Modellen der Urteilsbildung. Archiv fur die gesamte Psychologie. 120 (1968) 180–202.
[88] and , A comparative case study of the VIKOR and TOPSIS rankings similarity. Proc. Comput. Sci. 176 (2020) 3730–3740. | DOI
[89] , Rational choice and the structure of the environment. Psychol. Rev. 63 (1956) 129–138. | DOI
[90] , Invariants of human behavior. Ann. Rev. Psychol. 41 (1990) 1–19. | DOI
[91] , Choice based on reasons: the case of attraction and compromise effects. J. Consumer Res. 16 (1989) 158–174. | DOI
[92] and , Choice in context: tradeoff contrast and extremeness aversion. J. Marketing Res. 29 (1992) 231–295. | DOI
[93] , Analyzing the expert judge: a descriptive study of a stockbroker’s decision processes. J. Appl. Psychol. 53 (1969) 255–263. | DOI
[94] , and , Behavioral decision theory. Ann. Rev. Psychol. 28 (1977) 1–39. | DOI
[95] , , and , The affect heuristic. In: Heuristics and Biases: The Psychology of Intuitive Judgment, edited by , and . Cambridge University Press, Cambridge (2002) 397–420. | DOI
[96] , Cognitive Psychology. Allyn and Bacon Inc., Boston (1988).
[97] , Multi-Criteria Decision Making Methods: A Comparative Study. Kluwer Academic Publishers, Boston, MA, USA (2000). | Zbl
[98] , Two new cases of rank reversals when the AHP and some of its additive variants are used that do not occur with the Multiplicative AHP. Multi-Criteria Decis. Anal. 10 (2001) 11–25. | Zbl | DOI
[99] , and , Preference reversal in multiattribute choice. Psychol. Rev. 117 (2010) 1275–1293. | DOI
[100] , Intransitivity of preferences. Psychol. Rev. 76 (1969) 31–48. | DOI
[101] , elimination by aspects: a theory of choice. Psychol. Rev. 79 (1972) 281–299. | DOI
[102] and , Loss aversion in riskless choice: a reference dependent model. Q. J. Econ. 107 (1991) 1039–1061. | DOI
[103] and , Context dependent preferences. Manage. Sci. 39 (1993) 1179–1189. | Zbl | DOI
[104] , and , Contingent weighting in judgment and choice. Psychol. Rev. XCV (1988) 371–384. | DOI
[105] and , Loss aversion and inhibition in dynamical models of multialternative choice. Psychol. Rev. 111 (2004) 757–769. | DOI
[106] and , Individual differences in the decision process of employment interviewers. J. Appl. Psychol. 58 (1973) 49–53. | DOI
[107] , , , , and , Multiple criteria decision making, multi attribute utility theory: recent accomplishments and what lies ahead. Manage. Sci. 54 (2008) 1336–1349. | Zbl | DOI
[108] and , Ranking irregularities when evaluating alternatives by using some ELECTRE methods. Omega 36 (2008) 45–63. | DOI
[109] , , , and , Generalised framework for multi-criteria method selection: rule set database and exemplary decision support system implementation blueprints. Data Brief 22 (2019) 639. | DOI
[110] , , , and , Generalised framework for multi-criteria method selection. Omega 86 (2019) 107–124. | DOI
[111] , The use of reference objectives in multiobjective optimization. In: MCDM Theory and Application, edited by and . Lecture Notes in Economics and Mathematical Systems. Vol. 177. Springer, Berlin (1980) 468–486. | MR | Zbl
[112] , Cumulative prospect theory for parametric and mult-iattribute utilities. Math. Oper. Res. 26 (2001) 67–81. | MR | Zbl | DOI
[113] , The attribute-dynamic attitude model (ADAM). Manage. Sci. 23 (1976) 12–26. | MR | Zbl | DOI
Cité par Sources :
