On Importance of Performance Values for Preference Degrees in PROMETHEE

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F20%3A10246204" target="_blank" >RIV/61989100:27510/20:10246204 - isvavai.cz</a>
Result on the web
<a href="https://mme2020.mendelu.cz/" target="_blank" >https://mme2020.mendelu.cz/</a>
DOI - Digital Object Identifier
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Result language
angličtina
Original language name
On Importance of Performance Values for Preference Degrees in PROMETHEE
Original language description
PROMETHEE methods are popular methods for multi-criteria decision-making. They achieved their popularity, especialy for their good traceability, mathematical simplicity and applicability for many different types of decision-making problems. These methods are based on pairwise comparison of alternatives in terms of each criterion, resulting in quantitative expression of user's preferences. In the original PROMETHEE algorithm, this preference degree is a function of the difference in performances of two alternatives, regardless the initial performance values. This issue simpliies the algorithm computationally, but does not necessarily relect real preferences of the decision-maker. Based on the law of diminishing marginal utility, it is reasonable to consider not only a difference in performances, but also their values. The aim of this paper is to show that there are problems, for which it is reasonable to take the initial values into account, and to provide an extension of the original PROMETHEE algorithm dealing with this issue. The revised algorithm works with new input parameters, which must be set by the decision-maker. However, all these inputs have their economic interpretation.
Czech name
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Czech description
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Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
38th International Conference on Mathematical Methods in Economics (MME 2020) : conference proceedings : September 9-11, 2020, Mendel University in Brno, Czech Republic
ISBN
978-80-7509-734-7
ISSN
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e-ISSN
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Number of pages
7
Pages from-to
662-668
Publisher name
Mendel University in Brno
Place of publication
Brno
Event location
Brno
Event date
Sep 9, 2020
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000668460800101

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