MCGL: a new reference dependent MCDM method

Ram Kumar Dhurkari

International Journal of Operational Research, 2019, vol. 36, issue 4, 477-495

Abstract: This paper proposes a method for discrete alternative multi-criteria decision making (MCDM) under certainty. The proposed method (multi-criteria gain loss: MCGL) is based upon the tenets of prospect theory and norm theory. The two major objectives for the development of the MCGL method are: 1) to reduce the complexity of the MCDM in order to improve the performance of the decision maker (DM) in the process of judgement; 2) to use some of the latest descriptive theories of decision making in order to improve the effectiveness of the MCDM method in terms of its resemblance with actual decisions. Two studies conducted to test the effectiveness of the proposed method in resembling actual or real decisions. In comparison to the analytic hierarchy process (AHP), the MCGL method is able to capture individual's decision-making process more accurately. Applicability measures like the number of decisions required, time and the cognitive burden strongly favours the MCGL method.

Keywords: multi-criteria decision making; MCDM; prospect theory; analytic hierarchy process; AHP. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=104053 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijores:v:36:y:2019:i:4:p:477-495

Access Statistics for this article

More articles in International Journal of Operational Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().