A Multiple Criteria Decision Making Method Based on Relative Value Distances

• Main Authors: Shyur Huan-jyh, Yin Liang, Shih Hsu-shih, Cheng Chi-bin
• Format: Article
• Language: English
• Published: Sciendo 2015-12-01
• Series: Foundations of Computing and Decision Sciences
• Subjects: mcdm; prospect theory; value function; expected utility function; topsis
• Online Access: https://doi.org/10.1515/fcds-2015-0017

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.