Influence of aggregation and measurement scale on ranking a compromise alternative in AHP

Paper number: 05/06

Paper date: 2005

Year: 2005

Paper Category: Working Paper

Authors

Alessio Ishizaka, Dieter Balkenborg and Todd Kaplan

Abstract

Analytic Hierarchy Process (AHP) is one of the most popular multi-attribute decision aid methods. However, results depend on the preference measurement sacle and the aggregation technique used. In this paper, we describe a decision problem with an inherent trade-off between two criteria. A decision-maker has to choose among three alternatives: two extremes and one "compromise". Six different measurement scales described previously in the literature and the new proposed logarithmic scale are considered for applying the additive and the multiplicative AHP. The results are compared with the standard consumer choice theory. The geometric and power scales offer no chance (for the additive AHP) and very few chances (for the multiplicative AHP) for a compromise to be selected. The logarithmic scale used with the multiplicative AHP is the most in agreement with the consumer choice theory.

Influence of aggregation and measurement scale on ranking a compromise alternative in AHP Influence of aggregation and measurement scale on ranking a compromise alternative in AHP