IDEAS home Printed from https://ideas.repec.org/a/spr/jbecon/v86y2016i1d10.1007_s11573-015-0787-z.html
   My bibliography  Save this article

Finding better alternatives than those considered in a multiple criteria data sample

Author

Listed:
  • Ankur Sinha

    (Indian Institute of Management)

  • Pekka Korhonen

    (Aalto University School of Business)

  • Jyrki Wallenius

    (Aalto University School of Business)

Abstract

This paper suggests a preference-based method to calculate the probability of finding a better alternative than the ones present in the original data sample. Such a procedure would be useful, for example, while selecting among job applicants, where each individual is evaluated in terms of multiple criteria. Once the evaluation of individuals is done, the efficient (non-dominated) individuals from the sample are identified and the most preferred candidate is chosen. However, it is often useful to assess the probability of finding even better candidates, were more applications invited. In this paper, we suggest a generic method to ascertain this probability, which can be used as a criterion to terminate the search for the most preferred alternative. This is achieved by estimating the value function of the decision maker in terms of different criteria. If a linear value function cannot be fitted, we suggest a novel approach to test more general functions in a stepwise manner.

Suggested Citation

  • Ankur Sinha & Pekka Korhonen & Jyrki Wallenius, 2016. "Finding better alternatives than those considered in a multiple criteria data sample," Journal of Business Economics, Springer, vol. 86(1), pages 35-54, January.
    • Handle: RePEc:spr:jbecon:v:86:y:2016:i:1:d:10.1007_s11573-015-0787-z
    DOI: 10.1007/s11573-015-0787-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11573-015-0787-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11573-015-0787-z?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pekka Korhonen & Herbert Moskowitz & Pekka Salminen & Jyrki Wallenius, 1993. "Further Developments and Tests of a Progressive Algorithm for Multiple Criteria Decision Making," Operations Research, INFORMS, vol. 41(6), pages 1033-1045, December.
    2. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    3. Stanley Zionts & Jyrki Wallenius, 1983. "An Interactive Multiple Objective Linear Programming Method for a Class of Underlying Nonlinear Utility Functions," Management Science, INFORMS, vol. 29(5), pages 519-529, May.
    4. Stanley Zionts & Jyrki Wallenius, 1976. "An Interactive Programming Method for Solving the Multiple Criteria Problem," Management Science, INFORMS, vol. 22(6), pages 652-663, February.
    5. Pekka Korhonen & Herbert Moskowitz & Jyrki Wallenius, 1986. "A Progressive Algorithm for Modeling and Solving Multiple-Criteria Decision Problems," Operations Research, INFORMS, vol. 34(5), pages 726-731, 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. Nikolaos Argyris & Alec Morton & José Rui Figueira, 2014. "CUT: A Multicriteria Approach for Concavifiable Preferences," Operations Research, INFORMS, vol. 62(3), pages 633-642, June.
    2. Soleimani-damaneh, Majid & Pourkarimi, Latif & Korhonen, Pekka J. & Wallenius, Jyrki, 2021. "An operational test for the existence of a consistent increasing quasi-concave value function," European Journal of Operational Research, Elsevier, vol. 289(1), pages 232-239.
    3. Gass, Saul I. & Roy, Pallabi Guha, 2003. "The compromise hypersphere for multiobjective linear programming," European Journal of Operational Research, Elsevier, vol. 144(3), pages 459-479, February.
    4. Nasim Nasrabadi & Akram Dehnokhalaji & Pekka Korhonen & Jyrki Wallenius, 2019. "Using convex preference cones in multiple criteria decision making and related fields," Journal of Business Economics, Springer, vol. 89(6), pages 699-717, August.
    5. Homburg, Carsten, 1998. "Hierarchical multi-objective decision making," European Journal of Operational Research, Elsevier, vol. 105(1), pages 155-161, February.
    6. Pekka Salminen & Jeffrey E. Teich & Jyrki Wallenius, 1998. "The Secretary Problem Revisited - The Group Decision-Making Perspective," Group Decision and Negotiation, Springer, vol. 7(1), pages 3-21, January.
    7. Sun, Minghe, 2005. "Some issues in measuring and reporting solution quality of interactive multiple objective programming procedures," European Journal of Operational Research, Elsevier, vol. 162(2), pages 468-483, April.
    8. M Köksalan & E Karasakal, 2006. "An interactive approach for multiobjective decision making," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(5), pages 532-540, May.
    9. Siskos, Y. & Spyridakos, A., 1999. "Intelligent multicriteria decision support: Overview and perspectives," European Journal of Operational Research, Elsevier, vol. 113(2), pages 236-246, March.
    10. Asim Roy & Patrick Mackin & Jyrki Wallenius & James Corner & Mark Keith & Gregory Schymik & Hina Arora, 2008. "An Interactive Search Method Based on User Preferences," Decision Analysis, INFORMS, vol. 5(4), pages 203-229, December.
    11. Stein, William E. & Seale, Darryl A. & Rapoport, Amnon, 2003. "Analysis of heuristic solutions to the best choice problem," European Journal of Operational Research, Elsevier, vol. 151(1), pages 140-152, November.
    12. Park, K. Sam & Shin, Dong Eun, 2012. "Interactive multiobjective optimization approach to the input–output design of opening new branches," European Journal of Operational Research, Elsevier, vol. 220(2), pages 530-538.
    13. Aksoy, Yasemin & Butler, Timothy W. & Minor, Elliott D., 1996. "Comparative studies in interactive multiple objective mathematical programming," European Journal of Operational Research, Elsevier, vol. 89(2), pages 408-422, March.
    14. Dirk Heyne & Lars Mönch, 2011. "An agent-based planning approach within the framework of distributed hierarchical enterprise management," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(2), pages 205-236, December.
    15. R. Ramesh & Mark H. Karwan & Stanley Zionts, 1989. "Interactive multicriteria linear programming: An extension of the method of Zionts and Wallenius," Naval Research Logistics (NRL), John Wiley & Sons, vol. 36(3), pages 321-335, June.
    16. Smeulders, Bart & Crama, Yves & Spieksma, Frits C.R., 2019. "Revealed preference theory: An algorithmic outlook," European Journal of Operational Research, Elsevier, vol. 272(3), pages 803-815.
    17. Lahdelma, Risto & Salminen, Pekka & Kuula, Markku, 2003. "Testing the efficiency of two pairwise comparison methods in discrete multiple criteria problems," European Journal of Operational Research, Elsevier, vol. 145(3), pages 496-508, March.
    18. Homburg, Carsten, 1998. "Production planning with multiple objectives in decentralized organizations," International Journal of Production Economics, Elsevier, vol. 56(1), pages 243-252, September.
    19. Asim Roy & Jyrki Wallenius, 1991. "Nonlinear and unconstrained multiple‐objective optimization: Algorithm, computation, and application," Naval Research Logistics (NRL), John Wiley & Sons, vol. 38(4), pages 623-635, August.
    20. Waychal, Nachiketas & Laha, Arnab Kumar & Sinha, Ankur, 2022. "Customized forecasting with Adaptive Ensemble Generator," IIMA Working Papers WP 2022-06-04, Indian Institute of Management Ahmedabad, Research and Publication Department.

    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:jbecon:v:86:y:2016:i:1:d:10.1007_s11573-015-0787-z. 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.