INSEAD Library

Includes bibliographical references and index

Digitized

Multiple Criteria Decision Analysis: State of the Art Surveys Contents List of Figures List of Tables xiii xvii Introduction xxi Jose Figueira, Salvatore Greco, Matthias Ehrgott 1. Human Reflection about Decision xxi 2. Technical Reflection about Decision: MCDA Researchers before MCDA xxii 3. The Reasons for this Collection of State-of-the-Art Surveys xxiv 4. A Guided Tour of the Book xxv 5. Acknowledgment to the Referees xxxiv References xxxiv Part I An Overview of MCDA Techniques Today 1 Paradigms and Challenges 3 Bernard Roy 1. What Are the Expectations that Multicriteria Decision Aiding (MCDA) Responds to? 4 2. Three Basic Concepts 7 3. How to Take Into Account Imperfect Knowledge? 12 4. An Operational Point of View 14 5. Conclusion 17 References 18 Part II Foundations of MCDA 2 Preference Modelling Meltem Oztiirk, Alexis Tsoukias, Philippe Vincke 1. Introduction 2. Purpose 3. Nature of Information 4. Notation and Basic Definitions 5. Languages 27 28 28 30 32 33 6. Preference Structures 7. Domains and Numerical Representations 8. Logic of Preferences 9. Conclusion References 3 Conjoint measurement tools for MCDM Denis Bouyssou, Marc Pirlot 1. Introduction and Motivation 2. Definitions and Notation 3. The Additive Value Model in the "Rich" Case 4. The Additive Value Model in the "Finite" Case 5. Extensions References Part III Outranking Methods 4 ELECTRE Methods JoséFigueira, Vincent Mousseau, Bernard Roy 1. Introduction: A Brief History 2. Main Features of ELECTRE Methods 3. A Short Description of ELECTRE Methods 4. Recent Developments and Future Issues 5. Software and Applications 6. Conclusion References 5 PROMETHEE Methods Jean-Pierre Brans, Bertrand Mareschal 1. History 2. Multicriteria Problems 3. The PROMETHEE Preference Modelling Information 4. The PROMETHEE I and II Rankings 5. The GALA Visual Interactive Module 6. The PROMETHEE VI Sensitivity Tool (The "Human Brain") 7. PROMETHEE V: MCDA under Constraints 8. The PROMETHEE GDSS Procedure 9. The DECISION LAB Software References 6 Other Outranking Approaches Jean-Marc Martel, Benedetto Matarazzo 1. Introduction 2. Other Outranking Methods 39 48 56 59 60 73 74 89 92 102 112 119 133 134 136 139 149 151 153 153 163 164 164 168 171 175 181 182 183 186 189 197 198 198 3. Pairwise Criterion Comparison Approach 4. One Outranking Method for Stochastic Data 5. Conclusions References Part IV Multiattribute Utility and Value Theories 221 254 259 260 7 MAUT ­ Multiattribute Utility Theory 265 James S. Dyer 1. Introduction 266 2. Preference Representations Under Certainty and Under Risk 267 3. Ordinal Multiattribute Preference Functions for the Case of Certainty 273 4. Cardinal Multiattribute Preference Functions for the Case of Risk 278 5. Measurable Multiattribute Preference Functions for the Case of Certainty 281 6. The Relationships Among the Multiattribute Preference Functions 290 7. Concluding Remarks 292 References 294 8 UTA Methods Yannis Siskos, Evangelos Grigoroudis, Nikolaos F Matsatsinis 1. Introduction 2. The UTA Method 3. Variants of the UTA Method 4. Applications and UTA-based DSS 5. Concluding Remarks and Future Research References 9 The Analytic Hierarchy and Analytic Network Processes for the Measurement of Intangible Criteria and for Decision-Making Thomas L Saaty 1. Introduction 2. Pairwise Comparisons; Inconsistency and the Principal Eigenvector 3. Stimulus Response and the Fundamental Scale 4. Hospice Decision 5. Rating Alternatives One at a Time in the AHP ­ Absolute Measurement 6. Paired Comparisons Imply Dependence 7. When is a Positive Reciprocal Matrix Consistent? 8. In the Analytic Hierarchy Process Additive Composition is Necessary 9. Benefits, Opportunities, Costs and Risks 10. On the Admission of China to the World Trade Organization (WTO) 11. The Analytic Network Process (ANP) 297 298 302 313 328 334 335 345 346 348 354 359 369 372 373 375 377 378 382 12. Two Examples of Estimating Market Share ­ The ANP with a Single Benefits Control Criterion 13. Outline of the Steps of the ANP 14. Complex Decisions with Dependence and Feedback 15. Conclusions References 10 On the Mathematical Foundation of MACBETH Carlos A. Bana e Costa, Jean-Marie De Cone, Jean-Claude Vansnick 1. Introduction 2. Previous Research and Software Evolution 3. Types of Preferential Information 4. Numerical Representation of the Preferential Information 5. Consistency ­ Inconsistency 6. Consistency Test for Preferential Information 7. Dealing with Inconsistency 8. The MACBETH Scale 9. Discussion About a Scale 10. MACBETH and MCDA References Part V Non-Classical MCDA Approaches 11 Dealing with Uncertainties in MCDA Theodor J Stewart 1. What is Uncertainty? 2. Probabilistic Models and Expected Utility 3. Pairwise Comparisons 4. Risk Measures as Surrogate Criteria 5. Scenario Planning and MCDA 6. Implications for Practice References 12 Choice, Ranking and Sorting in Fuzzy Multiple Criteria Decision Aid Patrick Meyer, Marc Roubens 1. Introduction 2. The Data Set 3. Valued Preference Relation and Outranking Relation 4. Aggregation Procedures 5. The Sorting Problem 6. The TOMASO Method 7. The Choice Problem 8. Conclusion References 389 400 403 405 406 409 410 412 414 415 416 417 420 432 435 437 438 445 446 450 454 457 460 466 467 471 472 474 475 478 482 483 502 503 504 13 Decision Rule Approach 507 Salvatore Greco, Benedetto Matarazzo, Roman Slowiriski 1. Introduction 508 2. Dominance-based Rough Set Approach (DRSA) to Multiple-criteria Classification 511 3. Variable-Consistency Dominance-Based Rough Set Approach (VC-DRSA) 525 4. Induction of Decision Rules from Rough Approximations of Upward and Downward Unions of Decision Classes 527 5. Extensions of DRSA 536 6. DRSA for Multiple-criteria Choice and Ranking 544 7. Conclusions 555 References 557 14 Fuzzy Measures and Integrals in MCDA Michel Grabisch, Christophe Labreuche 1. Introduction 2. Measurement Theoretic Foundations 3. Unipolar Scales 4. Bipolar Scales 5. Ordinal Scales 6. Concluding Remarks References 15 Verbal Decision Analysis Helen Moshkovich, Alexander Mechitov, David Olson 1. Features of Unstructured Decision Problems 2. Main Principles of Verbal Decision Analysis 3. Decision Methods for Multicriteria Alternatives Ranking 4. Decision Methods for Multicriteria Alternatives' Classification 5. Place of Verbal Decision Analysis in MCDA 6. Conclusion References Part VI Multiobjective Mathematical Programming 16 Interactive Methods Pekka Korhonen 1. Introduction 2. Basic Definitions and Some Theory 3. Principles for Implementing Interactive Methods 4. Generating Nondominated Solutions 5. Solving Multiple Objective Problems 6. Final Solution 7. Examples of Software Systems: VIG and VIMDA 641 642 643 645 649 652 656 657 563 564 566 570 583 595 604 604 609 610 610 615 625 628 633 634 8. Concluding Remarks References 17 Multiobjective Programming Matthias Ehrgott, Margaret M. Wiecek 1. Introduction 2. Problem Formulation and Solution Concepts 3. Properties of the Solution Sets 4. Conditions for Efficiency 5. Generation of the Solution Sets 6. Approximation of the Pareto Set 7. Specially Structured Problems 8. Current and Future Research Directions 9. Conclusions References 18 Multiple Objective Linear Programming with Fuzzy Coefficients Masahiro Inuiguchi 1. Introduction 2. Problem Statement and Approaches 3. Modality Constrained Programming Approach 4. Modality Goal Programming 5. Modal Efficiency Approach 6. Concluding Remarks References 19 MCDM Location Problems Stefan Nickel, Justo Puerto, Antonio M. Rodriguez-Chia 1. Introduction 2. Location Problems 3. Continuous Multicriteria Location Problems 4. Multicriteria Network Location Problems 5. Multicriteria Discrete Location Problems 6. Conclusions References Part VII Applications 20 Multicriteria Decision Aid/Analysis in Finance Jaap-Spronk, Ralph E. Steuer, Constantin Zopounidis 1. Introduction 2. Financial Decision Making 3. MCDA in Portfolio Decision-Making Theory 4. MCDA in Discrete Financial Decision-Making Problems 661 662 667 668 669 673 675 676 692 696 707 708 708 723 724 725 731 749 754 757 757 761 762 764 767 776 783 787 787 799 800 801 819 835 5. Conclusions and Future Perspectives References 848 849 21 MCDA and Energy Planning 859 Danae Diakoulaki, Carlos Henggeler Antunes, Ant6nio Gomes Martins 1. Introduction 860 2. Multiobjective Programming Models for Energy Planning 863 3. Energy Planning Decisions with Discrete Alternatives 874 4. Conclusions 890 References 891 22 Multicriteria Analysis in Telecommunication Network Planning and Design ­ Problems and Issues Joao Climaco, Jose Craveirinha 1. Motivation 2. Overview of Current Evolutions in Telecommunication Networks and Services 3. Multicriteria Analysis in Telecommunication Network Planning and Design 4. Review and Discussion of Applications of MA to Telecommunication Network Planning 5. Future Trends References 899 900 900 908 912 941 944 23 Multiple Criteria Decision Analysis and Sustainable Development 953 Giuseppe Munda 1. The Concept of Sustainable Development 954 2. Measuring Sustainability: The Issue of Sustainability Assessment Indexes 958 3. A Defensible Axiomatic Setting for Sustainability Composite Indicators 963 4. Warning! Not Always Rankings Have to Be Trusted ... 966 5. The Issue of the "Quality of the Social Decision Processes" 971 6. The Issue of Consistency in Multi-Criteria Evaluation of Sustainability Policies 976 7. Conclusion 980 References 981 Part VIII MCDM Software 24 Multiple Criteria Decision Support Software H. Roland Weistroffer, Charles H. Smith, Subhash C. Narula 1. Introduction 2. Software Overview 3. Concluding Remarks References Contributing Authors Index 989 990 990 1009 1011 1019 1035