Incorporating wealth information into a multiple criteria decision making model

Date

2003-10-01

Author

Karasakal, Esra
Michalowski, W

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

We describe how a multiple criteria decision making (MCDM) modelling framework can be extended to account for one of the behavioral ramifications of a decision making activity, namely, the decision maker's (I)M's) perception of his/her current wealth status, referred to as decisional wealth. Within the MCDM framework, decisional wealth reflects the relative achievements of each of the objectives in a given efficient solution. It is our argument that a DM's preferences and the importance of his/her objectives, vary depending on the decisional wealth. Therefore, we use the wealth information and trade-off analysis to guide the search for preferred outcomes. We identify efficient solutions that satisfy a DM's wealth-dependent preferences, and we illustrate the proposed modelling framework with an example. (C) 2002 Elsevier Science B.V. All rights reserved.

Subject Keywords

Management Science and Operations Research, Modelling and Simulation, Information Systems and Management

URI

https://hdl.handle.net/11511/47583

Collections

Department of Industrial Engineering, Article