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Rank Reversals In Decision-making
In decision-making, a rank reversal is a change in the rank ordering of the preferability of alternative possible decisions when, for example, the method of choosing changes or the set of other available alternatives changes. The issue of rank reversals lies at the heart of many debates in decision-making and multi-criteria decision-making, in particular. Unlike most other computational procedures, it is hard to tell if a particular decision-making method has derived the correct answer or not. Such methods analyze a set of alternatives described in terms of some criteria. They determine which alternative is the best one, or they provide relative weights of how the alternatives perform, or just how the alternatives should be ranked when all the criteria are considered simultaneously. This is exactly where the challenge with decision making exists. Often it is hard, if not practically impossible, to determine whether a ''correct'' answer has been reached or not. With other comp ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision-making
In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either rational or irrational. The decision-making process is a reasoning process based on assumptions of values, preferences and beliefs of the decision-maker. Every decision-making process produces a final choice, which may or may not prompt action. Research about decision-making is also published under the label problem solving, particularly in European psychological research. Overview Decision-making can be regarded as a problem-solving activity yielding a solution deemed to be optimal, or at least satisfactory. It is therefore a process which can be more or less rational or irrational and can be based on explicit or tacit knowledge and beliefs. Tacit knowledge is often used to fill the gaps in complex decision-making processes. Usuall ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Multi-criteria Decision-making
Multiple-criteria decision-making (MCDM) or multiple-criteria decision analysis (MCDA) is a sub-discipline of operations research that explicitly evaluates multiple conflicting criteria in decision making (both in daily life and in settings such as business, government and medicine). Conflicting criteria are typical in evaluating options: cost or price is usually one of the main criteria, and some measure of quality is typically another criterion, easily in conflict with the cost. In purchasing a car, cost, comfort, safety, and fuel economy may be some of the main criteria we consider – it is unusual that the cheapest car is the most comfortable and the safest one. In portfolio management, managers are interested in getting high returns while simultaneously reducing risks; however, the stocks that have the potential of bringing high returns typically carry high risk of losing money. In a service industry, customer satisfaction and the cost of providing service are fundamenta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Decision Making Paradox
The decision-making paradox is a phenomenon related to decision-making and the quest for determining reliable decision-making methods. It was first described by Triantaphyllou , and has been recognized in the related literature as a fundamental paradox in multi-criteria decision analysis (MCDA), multi-criteria decision making (MCDM) and decision analysis since then. Description The decision-making paradox was first described in 1989, and further elaborated in the 2000 book by Triantaphyllou on multi-criteria decision analysis (MCDA) / multi-criteria decision making (MCDM). It arises from the observation that different decision-making methods, both normative and descriptive, yield different results, when fed with exactly the same decision problem and data. It has been recognized in the related literature as a fundamental paradox in multi-criteria decision analysis (MCDA) / multi-criteria decision making (MCDM), and decision analysis since then. In a study reported in ''Interna ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Analytic Hierarchy Process
In the theory of decision making, the analytic hierarchy process (AHP), also analytical hierarchy process, is a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology. It was developed by Thomas L. Saaty in the 1970s; Saaty partnered with Ernest Forman to develop ''Expert Choice'' software in 1983, and AHP has been extensively studied and refined since then. It represents an accurate approach to quantifying the weights of decision criteria. Individual experts’ experiences are utilized to estimate the relative magnitudes of factors through pair-wise comparisons. Each of the respondents compares the relative importance each pair of items using a specially designed questionnaire. Uses and applications AHP has particular application in group decision making, and is used around the world in a wide variety of decision situations, in fields such as government, business, industry, healthcare and education. Rather than prescribing ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Thomas Saaty
Thomas L. Saaty (July 18, 1926 – August 14, 2017) was a Distinguished University Professor at the University of Pittsburgh, where he taught in the Joseph M. Katz Graduate School of Business. He is the inventor, architect, and primary theoretician of the Analytic Hierarchy Process (AHP), a decision-making framework used for large-scale, multiparty, multi-criteria decision analysis, and of the Analytic Network Process (ANP), its generalization to decisions with dependence and feedback. Later on, he generalized the mathematics of the ANP to the Neural Network Process (NNP) with application to neural firing and synthesis but none of them gain such popularity as AHP. He died on the 14th of August 2017 after a year-long battle with cancer. Prior to coming to the University of Pittsburgh, Saaty was professor of statistics and operations research at the Wharton School of the University of Pennsylvania (1969–79). Before that, he spent fifteen years working for U.S. government agen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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