IDEAS home Printed from https://ideas.repec.org/a/spr/fininn/v2y2016i1d10.1186_s40854-016-0027-8.html
   My bibliography  Save this article

A group consensus model for evaluating real estate investment alternatives

Author

Listed:
  • Wenshuai Wu

    (East China Jiaotong University
    Sichuan University
    Changbei Economic and Technological Development Zone)

  • Gang Kou

    (Southwestern University of Finance and Economics)

Abstract

Background Individual decision-making largely influences the effectiveness of decisions and benefits of investments. Methods: In this article, a consensus model for group decision-making (GDM), based on the analytic hierarchy process (AHP), is developed to gather group ideas and analyze the real estate investment environment under multi-criteria problems. Twelve evaluation procedures of the developed model, which increase the convergence of the opinions of multiple experts, are proposed. Results An empirical case about the real estate investment environment is applied to certify the feasibility of this developed model. Conclusions the evaluation procedures have been fully observed with several rounds of discussions, and have manifested the experiences of experts. Besides, the evaluation results are in accordance with real-world situations, which demonstrates that our developed model is a feasible analysis tool for real estate investors to obtain better profits and lower risk.

Suggested Citation

  • Wenshuai Wu & Gang Kou, 2016. "A group consensus model for evaluating real estate investment alternatives," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-10, December.
    • Handle: RePEc:spr:fininn:v:2:y:2016:i:1:d:10.1186_s40854-016-0027-8
    DOI: 10.1186/s40854-016-0027-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40854-016-0027-8
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40854-016-0027-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Thomas L. Saaty, 1986. "Axiomatic Foundation of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 32(7), pages 841-855, July.
    2. Ming-Long Lee & Ming-Te Lee & Kevin Chiang, 2008. "Real Estate Risk Exposure of Equity Real Estate Investment Trusts," The Journal of Real Estate Finance and Economics, Springer, vol. 36(2), pages 165-181, February.
    3. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
    4. Tam, Maggie C. Y. & Tummala, V. M. Rao, 2001. "An application of the AHP in vendor selection of a telecommunications system," Omega, Elsevier, vol. 29(2), pages 171-182, April.
    5. Arbel, Ami & Orgler, Yair E., 1990. "An application of the AHP to bank strategic planning: The mergers and acquisitions process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 27-37, September.
    6. Liberatore, Matthew J. & Nydick, Robert L., 2008. "The analytic hierarchy process in medical and health care decision making: A literature review," European Journal of Operational Research, Elsevier, vol. 189(1), pages 194-207, August.
    7. Lu, Chin-Shan & Yang, Ching-Chiao, 2007. "An evaluation of the investment environment in international logistics zones: A Taiwanese manufacturer's perspective," International Journal of Production Economics, Elsevier, vol. 107(1), pages 279-300, May.
    8. Yi Peng & Gang Kou & Guoxun Wang & Wenshuai Wu & Yong Shi, 2011. "Ensemble Of Software Defect Predictors: An Ahp-Based Evaluation Method," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 187-206.
    9. Ramanathan, R. & Ganesh, L. S., 1995. "Using AHP for resource allocation problems," European Journal of Operational Research, Elsevier, vol. 80(2), pages 410-417, January.
    10. Ernest H. Forman & Saul I. Gass, 2001. "The Analytic Hierarchy Process---An Exposition," Operations Research, INFORMS, vol. 49(4), pages 469-486, August.
    11. Meløn, Mønica García & Aragonés Beltran, Pablo & Carmen González Cruz, M., 2008. "An AHP-based evaluation procedure for Innovative Educational Projects: A face-to-face vs. computer-mediated case study," Omega, Elsevier, vol. 36(5), pages 754-765, October.
    12. Vaidya, Omkarprasad S. & Kumar, Sushil, 2006. "Analytic hierarchy process: An overview of applications," European Journal of Operational Research, Elsevier, vol. 169(1), pages 1-29, February.
    13. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    14. Hoag, James W, 1980. "Towards Indices of Real Estate Value and Return," Journal of Finance, American Finance Association, vol. 35(2), pages 569-580, May.
    15. Lai, Vincent S. & Wong, Bo K. & Cheung, Waiman, 2002. "Group decision making in a multiple criteria environment: A case using the AHP in software selection," European Journal of Operational Research, Elsevier, vol. 137(1), pages 134-144, February.
    16. Hermans, Leon M. & Thissen, Wil A.H., 2009. "Actor analysis methods and their use for public policy analysts," European Journal of Operational Research, Elsevier, vol. 196(2), pages 808-818, July.
    17. Henisz, Witold J, 2000. "The Institutional Environment for Multinational Investment," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(2), pages 334-364, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mehmet Yüksel, 2019. "A Model Proposal for the Evaluation of Chemistry Education in the Context of Learning Environment," Asian Journal of Education and Training, Asian Online Journal Publishing Group, vol. 5(3), pages 488-494.
    2. Ergu, Daji & Kou, Gang & Peng, Yi & Shi, Yong, 2011. "A simple method to improve the consistency ratio of the pair-wise comparison matrix in ANP," European Journal of Operational Research, Elsevier, vol. 213(1), pages 246-259, August.
    3. Vaidya, Omkarprasad S. & Kumar, Sushil, 2006. "Analytic hierarchy process: An overview of applications," European Journal of Operational Research, Elsevier, vol. 169(1), pages 1-29, February.
    4. 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.
    5. Daji Ergu & Gang Kou & János Fülöp & Yong Shi, 2014. "Further Discussions on Induced Bias Matrix Model for the Pair-Wise Comparison Matrix," Journal of Optimization Theory and Applications, Springer, vol. 161(3), pages 980-993, June.
    6. Ouesleti, Bilel & Costa-Font, Montserrat & Kallas, Zein & Chema Gil, Jose Maria, 2015. "Determinant Factors Affecting The Point of Purchase Selection: valuation and Perceptions," 2015 Conference, August 9-14, 2015, Milan, Italy 212603, International Association of Agricultural Economists.
    7. Hanwen Chen & Wang Dong & Hongling Han & Nan Zhou, 2017. "A comprehensive and quantitative internal control index: construction, validation, and impact," Review of Quantitative Finance and Accounting, Springer, vol. 49(2), pages 337-377, August.
    8. A Ishizaka & D Balkenborg & T Kaplan, 2011. "Does AHP help us make a choice? An experimental evaluation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(10), pages 1801-1812, October.
    9. Wolfgang Ossadnik & Stefanie Schinke & Ralf H. Kaspar, 2016. "Group Aggregation Techniques for Analytic Hierarchy Process and Analytic Network Process: A Comparative Analysis," Group Decision and Negotiation, Springer, vol. 25(2), pages 421-457, March.
    10. Maina, Joseph & Venus, Valentijn & McClanahan, Timothy R. & Ateweberhan, Mebrahtu, 2008. "Modelling susceptibility of coral reefs to environmental stress using remote sensing data and GIS models," Ecological Modelling, Elsevier, vol. 212(3), pages 180-199.
    11. Madjid Tavana & Mariya Sodenkamp & Leena Suhl, 2010. "A soft multi-criteria decision analysis model with application to the European Union enlargement," Annals of Operations Research, Springer, vol. 181(1), pages 393-421, December.
    12. Zhu, Bin & Xu, Zeshui, 2014. "Analytic hierarchy process-hesitant group decision making," European Journal of Operational Research, Elsevier, vol. 239(3), pages 794-801.
    13. Hocine, Amine & Kouaissah, Noureddine, 2020. "XOR analytic hierarchy process and its application in the renewable energy sector," Omega, Elsevier, vol. 97(C).
    14. James G. Dolan & Emily Boohaker & Jeroan Allison & Thomas F. Imperiale, 2013. "Patients’ Preferences and Priorities Regarding Colorectal Cancer Screening," Medical Decision Making, , vol. 33(1), pages 59-70, January.
    15. Kang Xu & Jiuping Xu, 2020. "A direct consistency test and improvement method for the analytic hierarchy process," Fuzzy Optimization and Decision Making, Springer, vol. 19(3), pages 359-388, September.
    16. Song-Kyoo Kim, 2014. "Explicit Design of Innovation Performance Metrics by Using Analytic Hierarchy Process Expansion," International Journal of Mathematics and Mathematical Sciences, Hindawi, vol. 2014, pages 1-7, May.
    17. Hassan Hamza Zaidi, 2021. "Impact of Microfinance on Socio-Economic Conditions of the Borrowers: A Case Study of Akhuwat Foundation (Lahore)," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 2, September.
    18. Lin, Ming-Ian & Lee, Yuan-Duen & Ho, Tsai-Neng, 2011. "Applying integrated DEA/AHP to evaluate the economic performance of local governments in China," European Journal of Operational Research, Elsevier, vol. 209(2), pages 129-140, March.
    19. Ramakrishnan Ramanathan & Geetha Subramanian & Dipak Chaudhuri, 2010. "Quantitative Assessment of Stakeholder Perceptions for Tourism Development," Tourism Economics, , vol. 16(1), pages 99-116, March.
    20. S Taghipour & D Banjevic & A K S Jardine, 2011. "Prioritization of medical equipment for maintenance decisions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(9), pages 1666-1687, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fininn:v:2:y:2016:i:1:d:10.1186_s40854-016-0027-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.