Decision theory with multiple criteria: an aplication of ELECTRE IV and TODIM to SEBRAE/RJ

Abstract

This paper presents an application of two methods of Multi-Criteria Decision Analysis (MCDA), ELECTRE IV and TODIM, in order to tackle the problem of ranking projects with important economic and social consequences in the Rio de Janeiro State. These projects are ranked under the presence of quantitative and qualitative criteria. ELECTRE IV is a method of the French School of MCDA whose use does not rely on knowledge of criteria weights. TODIM, on the other hand, is a method that is based on the paradigm of Prospect Theory and that has elements of both the French and the American School of MCDA. Although ranks obtained by both methods were different, the same project was ranked as the best alternative according in both. The practical experience described in this paper has suggested that the use of MCDA methods in the ranking of project can significantly clarify the decision making process.