Incorporating wealth information into a multiple criteria decision making model

Date

2003-10-01

Author

Karasakal, Esra

Metadata

Show full item record

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

Item Usage Stats

212
views

0
downloads

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.

Subject Keywords

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

URI

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

Journal

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH

DOI

https://doi.org/10.1016/s0377-2217(02)00468-x

Collections

Department of Industrial Engineering, Article

Suggestions

OpenMETU
Core

AN APPROACH FOR FINDING THE MOST PREFERRED ALTERNATIVE IN THE PRESENCE OF MULTIPLE CRITERIA Köksalan, Mustafa Murat; TANER, OV (Elsevier BV, 1992-07-10) An interactive approach for discrete multiple criteria decision making problems is developed. The approach requires the decision maker to compare pairs of presented alternatives. These alternatives may be existing alternatives or dummy alternatives created from existing alternatives. Inferior alternatives are sequentially eliminated by either using the responses of the decision maker directly or by constructing cones of inferior solutions based on these responses. The approach converges to the most preferre...
A metamodeling methodology involving both qualitative and quantitative input factors Tunali, S; Batmaz, I (Elsevier BV, 2003-10-16) This paper suggests a methodology for developing a simulation metamodel involving both quantitative and qualitative factors. The methodology mainly deals with various strategic issues involved in metamodel estimation, analysis, comparison, and validation. To illustrate how to apply the methodology, a regression metamodel is developed for a client-server computer system. In particular, we studied how the response time is affected by the quantum interval, the buffer size. and the total number of terminals whe...
Bank asset and liability management under uncertainty Oguzsoy, CB; Güven, Sibel (Elsevier BV, 1997-11-01) This study presents a multiperiod stochastic linear simple recourse model for asset and liability management in banking. The model determines the portfolio of assets and liabilities over the planning horizon given a set of deterministic rates of returns of investments and costs of borrowings, and a set of random outstanding deposit levels, liquidity and total reserve requirements with a given discrete probability distribution. The intention is to develop an optimization tool to assure sustained profitabilit...
Interactive algorithms for a broad underlying family of preference functions Karakaya, Gülşah; AHİPAŞAOĞLU, Selin Damla (Elsevier BV, 2018-02-16) In multi-criteria decision making approaches it is typical to consider an underlying preference function that is assumed to represent the decision maker's preferences. In this paper we introduce a broad family of preference functions that can represent a wide variety of preference structures. We develop the necessary theory and interactive algorithms for both the general family of the preference functions and for its special cases. The algorithms guarantee to find the most preferred solution (point) of the ...
A heuristic approach to bicriteria scheduling Köksalan, Mustafa Murat (Wiley, 1999-10-01) We consider the problem of sequencing jobs on a single machine while minimizing a nondecreasing function of two criteria. We develop a heuristic procedure that quickly finds a good solution for bicriteria scheduling. The procedure is based on using several arcs in the criterion space that are representative of the possible locations of nondominated solutions. By sampling a small number of points on these arcs, a promising point is identified in the criterion space for each are. An efficient sequence in the ...

Citation Formats

E. Karasakal, “Incorporating wealth information into a multiple criteria decision making model,” EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, pp. 204–219, 2003, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/47583.