Incorporating wealth information into a multiple criteria decision making model

Date

2003-10-01

Author

Karasakal, Esra

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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

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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.