IDEAS home Printed from https://ideas.repec.org/p/arx/papers/0806.4876.html
   My bibliography  Save this paper

Inconsistency of the judgment matrix in the AHP method and the decision maker's knowledge

Author

Listed:
  • Anna Szczypinska
  • Edward W. Piotrowski

Abstract

In this paper we propose a method for a quantitative estimation of the decision maker's knowledge in the context of the Analytic Hierarchy Process (AHP) in cases, where the judgment matrix is inconsistent. We show that the matrix of deviation from the transitivity condition corresponds to the rate matrix for transaction costs in the financial market. For the quantitative estimation of the decision maker's professionalism, we apply the Ising model and thermodynamics tools.

Suggested Citation

  • Anna Szczypinska & Edward W. Piotrowski, 2008. "Inconsistency of the judgment matrix in the AHP method and the decision maker's knowledge," Papers 0806.4876, arXiv.org, revised Nov 2008.
    • Handle: RePEc:arx:papers:0806.4876
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/0806.4876
    File Function: Latest version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Piotrowski, Edward W & Sładkowski, Jan, 2004. "Arbitrage risk induced by transaction costs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 331(1), pages 233-239.
    2. Vargas, Luis G., 1990. "An overview of the analytic hierarchy process and its applications," European Journal of Operational Research, Elsevier, vol. 48(1), pages 2-8, September.
    3. Piotrowski, Edward W. & Sładkowski, Jan, 2007. "Geometry of financial markets—Towards information theory model of markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 382(1), pages 228-234.
    4. Edward W. Piotrowski & Jan Sladkowski, "undated". "The Thermodynamics of Portfolios," Departmental Working Papers 2, University of Bialtystok, Department of Theoretical Physics.
    5. Szczypińska, Anna & Piotrowski, Edward W., 2008. "Projective market model approach to AHP decision making," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(15), pages 3982-3986.
    6. Follmer, Hans, 1974. "Random economies with many interacting agents," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 51-62, March.
    7. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lizhi Zhang & Fan Li & Bo Sun & Chenghui Zhang, 2019. "Integrated Optimization Design of Combined Cooling, Heating, and Power System Coupled with Solar and Biomass Energy," Energies, MDPI, vol. 12(4), pages 1-21, February.

    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. Szczypińska, Anna & Piotrowski, Edward W., 2008. "Projective market model approach to AHP decision making," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(15), pages 3982-3986.
    2. Korpela, Jukka & Tuominen, Markku, 1996. "A decision aid in warehouse site selection," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 169-180, August.
    3. Ormerod, Richard J. & Ulrich, Werner, 2013. "Operational research and ethics: A literature review," European Journal of Operational Research, Elsevier, vol. 228(2), pages 291-307.
    4. Melachrinoudis, Emanuel & Min, Hokey, 2007. "Redesigning a warehouse network," European Journal of Operational Research, Elsevier, vol. 176(1), pages 210-229, January.
    5. Lucas, Rochelle Irene & Promentilla, Michael Angelo & Ubando, Aristotle & Tan, Raymond Girard & Aviso, Kathleen & Yu, Krista Danielle, 2017. "An AHP-based evaluation method for teacher training workshop on information and communication technology," Evaluation and Program Planning, Elsevier, vol. 63(C), pages 93-100.
    6. Sato, Yuji, 2012. "Optimal budget planning for investment in safety measures of a chemical company," International Journal of Production Economics, Elsevier, vol. 140(2), pages 579-585.
    7. Xu, Zeshui & Chen, Jian, 2008. "Some models for deriving the priority weights from interval fuzzy preference relations," European Journal of Operational Research, Elsevier, vol. 184(1), pages 266-280, January.
    8. Dong, Yucheng & Xu, Yinfeng & Li, Hongyi & Dai, Min, 2008. "A comparative study of the numerical scales and the prioritization methods in AHP," European Journal of Operational Research, Elsevier, vol. 186(1), pages 229-242, April.
    9. Tohid Atashbar, 2013. "Iranian Disease: Why a Developing Country's Government Did Not Listen to Economists' Advices," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(3), pages 732-760, July.
    10. Wu, Desheng Dash, 2009. "Performance evaluation: An integrated method using data envelopment analysis and fuzzy preference relations," European Journal of Operational Research, Elsevier, vol. 194(1), pages 227-235, April.
    11. Cathay Kuo-Tai Kang & Chieh-Yu Lin & Yi-Hui Ho, 2022. "Key Factors to Increasing Free Cash Flow for Manufacturers Utilizing Lean Production: An AHP-DEMATEL Approach," Information Management and Business Review, AMH International, vol. 14(2), pages 28-45.
    12. Parra-López, Carlos & Reina-Usuga, Liliana & Garcia-Garcia, Guillermo & Carmona-Torres, Carmen, 2024. "Functional analysis of technological innovation systems enabling digital transformation: A semi-quantitative multicriteria framework applied in the olive sector," Agricultural Systems, Elsevier, vol. 214(C).
    13. Korpela, Jukka & Lehmusvaara, Antti & Tuominen, Markku, 2001. "Customer service based design of the supply chain," International Journal of Production Economics, Elsevier, vol. 69(2), pages 193-204, January.
    14. P Ji & R Jiang, 2003. "Scale transitivity in the AHP," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(8), pages 896-905, August.
    15. Xu, Z., 2000. "On consistency of the weighted geometric mean complex judgement matrix in AHP," European Journal of Operational Research, Elsevier, vol. 126(3), pages 683-687, November.
    16. Abrahamsen, Eirik Bjorheim & Milazzo, Maria Francesca & Selvik, Jon T. & Asche, Frank & Abrahamsen, HÃ¥kon Bjorheim, 2020. "Prioritising investments in safety measures in the chemical industry by using the Analytic Hierarchy Process," Reliability Engineering and System Safety, Elsevier, vol. 198(C).
    17. Korpela, Jukka & Lehmusvaara, Antti & Tuominen, Markku, 2001. "An analytic approach to supply chain development," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 145-155, May.
    18. Virginia Racioppi & Gabriella Marcarelli & Massimo Squillante, 2015. "Modelling a sustainable requalification problem by analytic hierarchy process," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(4), pages 1661-1677, July.
    19. Min, Hokey & Melachrinoudis, Emanuel, 1999. "The relocation of a hybrid manufacturing/distribution facility from supply chain perspectives: a case study," Omega, Elsevier, vol. 27(1), pages 75-85, February.
    20. Korpela, Jukka & Tuominen, Markku, 1996. "Inventory forecasting with a multiple criteria decision tool," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 159-168, August.

    More about this item

    Statistics

    Access and download statistics

    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:arx:papers:0806.4876. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.