<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This paper proposes a new multiple criteria decision-making method called ERVD (election based on relative value distances). The s-shape value function is adopted to replace the expected utility function to describe the risk-averse and risk-seeking behavior of decision makers. Comparisons and experiments contrasting with the TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution) method are carried out to verify the feasibility of using the proposed method to represent the decision makers’ preference in the decision making process. Our experimental results show that the proposed approach is an appropriate and effective MCDM method.</p></abstract>

This paper proposes a new multiple criteria decision-making method called ERVD (election based on relative value distances). The s-shape value function is adopted to replace the expected utility function to describe the risk-averse and risk-seeking behavior of decision makers. Comparisons and experiments contrasting with the TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution) method are carried out to verify the feasibility of using the proposed method to represent the decision makers’ preference in the decision making process. Our experimental results show that the proposed approach is an appropriate and effective MCDM method.

A Multiple Criteria Decision Making Method Based on Relative Value Distances

Department of Information Management, Tamkang University 151, Yingzhuan Rd., Tamsui Dist., New Taipei City 25137, Taiwan

Department of Management Science, Tamkang University

Department of Information Management, Tamkang University

Foundations of Computing and Decision Sciences

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"A Multiple Criteria Decision Making Method Based on Relative Value Distances"}

This paper proposes a new multiple criteria decision-making method called ERVD (election based on relative value distances). The s-shape value function is...

A Multiple Criteria Decision Making Method Based on Relative Value Distances

Published Online: Dec 12, 2015

Page range: 299 - 315

Received: Nov 28, 2014

Accepted: May 28, 2015

DOI: https://doi.org/10.1515/fcds-2015-0017

Keywords
MCDM, prospect theory, value function, expected utility function, TOPSIS

© by Huan-jyh Shyur

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

A Multiple Criteria Decision Making Method Based on Relative Value Distances

Published Online: Dec 12, 2015

Page range: 299 - 315

Received: Nov 28, 2014

Accepted: May 28, 2015

DOI: https://doi.org/10.1515/fcds-2015-0017

KeywordsMCDM, prospect theory, value function, expected utility function, TOPSIS

© by Huan-jyh Shyur

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
MCDM, prospect theory, value function, expected utility function, TOPSIS