Systemic decision making in AHP: a Bayesian approach

José María Moreno-Jiménez (), Manuel Salvador, Pilar Gargallo and Alfredo Altuzarra
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José María Moreno-Jiménez: Universidad de Zaragoza
Manuel Salvador: Universidad de Zaragoza
Pilar Gargallo: Universidad de Zaragoza
Alfredo Altuzarra: Universidad de Zaragoza

Annals of Operations Research, 2016, vol. 245, issue 1, No 14, 284 pages

Abstract: Abstract Systemic decision making is a new approach for dealing with complex multiactor decision making problems in which the actors’ individual preferences on a fixed set of alternatives are incorporated in a holistic view in accordance with the “principle of tolerance”. The new approach integrates all the preferences, even if they are encapsulated in different individual theoretical models or approaches; the only requirement is that they must be expressed as some kind of probability distribution. In this paper, assuming the analytic hierarchy process (AHP) is the multicriteria technique employed to rank alternatives, the authors present a new methodology based on a Bayesian analysis for dealing with AHP systemic decision making in a local context (a single criterion). The approach integrates the individual visions of reality into a collective one by means of a tolerance distribution, which is defined as the weighted geometric mean of the individual preferences expressed as probability distributions. A mathematical justification of this distribution, a study of its statistical properties and a Monte Carlo method for drawing samples are also provided. The paper further presents a number of decisional tools for the evaluation of the acceptance of the tolerance distribution, the construction of tolerance paths that increase representativeness and the extraction of the relevant knowledge of the subjacent multiactor decisional process from a cognitive perspective. Finally, the proposed methodology is applied to the AHP-multiplicative model with lognormal errors and a case study related to a real-life experience in local participatory budgets for the Zaragoza City Council (Spain).

Keywords: Multiactor decision making; Systemic decision making; Tolerance distribution; AHP; Bayesian inference; Participatory budgets (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10479-014-1637-z

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