Qualitative multiple criteria choice analysis

A new method, the so-called regime analysis, is devised, based on a pairwise comparison of choice options and serves to find the best available compromise by identifying that option which ensures the highest score probability that is embodied in the ordinal information.

Abstract

In recent years an avalanche of literature has been published in the field of multiple criteria analysis. This methodology for decision-making and evaluation serves to find the best compromise solutions among alternative choice options, taking into account the existence of conflicting judgment criteria. The present paper focuses attention on one particular class of multiple criteria methods, viz. those in which the available information (impacts and policy priorities) is measured in an ordinal sense. This low level of measurement precludes the application of standard numerical methods. For this problem a new method, the so-called regime analysis, is devised in the paper. This method is based on a pairwise comparison of choice options and serves to find the best available compromise by identifying that option which ensures the highest score probability that is embodied in the ordinal information. The formal derivation is based upon the principle of insufficient reasoning and leads in general to an unambiguous choice. Particular attention is also given to the existence of ties and of mixed (i.e. qualitative-quantitative) information. The method is illustrated by means of an evaluation problem regarding 12 types of automobiles on the basis of a variety of judgement criteria.