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

Author

Listed:
  • A Ishizaka

    (University of Portsmouth, Portsmouth Business School)

  • D Balkenborg

    (University of Exeter Business School)

  • T Kaplan

    (University of Exeter Business School)

Abstract

Analytic Hierarchy Process (AHP) is one of the most popular multi-attribute decision aid methods. However, within AHP, there are several competing preference measurement scales and aggregation techniques. In this paper, we compare these possibilities using 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 aggregation techniques. The results are compared with the standard consumer choice theory. We find that with the geometric and power scales a compromise is never selected when aggregation is additive and rarely when aggregation is multiplicative, while the logarithmic scale used with the multiplicative aggregation most often selects the compromise that is desirable by consumer choice theory.

Suggested Citation

  • A Ishizaka & D Balkenborg & T Kaplan, 2011. "Influence of aggregation and measurement scale on ranking a compromise alternative in AHP," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 700-710, April.
    • Handle: RePEc:pal:jorsoc:v:62:y:2011:i:4:d:10.1057_jors.2010.23
    DOI: 10.1057/jors.2010.23
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    More about this item

    Keywords

    decision analysis; multiple criteria analysis; utility theory; additive AHP; multiplicative AHP; logarithmic scale;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General

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