Analysis of Dominance and Satisfaction
One of the things we shall do in this chapter is to introduce a fundamental concept in multicriterion analysis: the Pareto optimum. Suppose a decision maker has to choose from a choice set A, a car for example. To do this he will evaluate the problem with the help of several criteria such as price, quality, comfort etc. For each of these attributes he is able to classify the alternatives in a (strongly) rational manner, i.e. he has available n preorders which can be totally represented by utility functions Uj. As we have already seen, of he chooses the cheapest object (price criterion), he has little chance of ending up with the most comfortable car (comfort criterion). If on the other hand he chooses the most comfortable car, there is little likelihood of this being the cheapest.
KeywordsDecision Maker Satisfaction Level Pareto Optimum Decision Matrix Aspiration Level
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