Journal Article

Behavioural decision theory for multi-criteria decision analysis: a guided tour

Morton, A, Fasolo, B

2009

Overview

Multi-criteria decision analysis (MCDA) involves asking decision makers difficult questions, and can leave them thinking that their judgements are not as coherent as they might have thought. This experience can be distressing and may even lead to rejection of the analysis. The psychology of preference sheds light both on how people naturally make choices without decision analytic assistance, and on how people think about the MCDA elicitation questions. As such, it can help the analyst to respond helpfully to difficulties which decision makers may face. In this paper, we review research from Behavioural Decision Theory relevant to MCDA. Our review follows the MCDA process, discussing research relevant to the structuring, value elicitation, and weighting phases of the analysis, outlining relevant and important findings, and open questions for research and practice.

• Publisher: Taylor & Francis,Palgrave Macmillan Publishers,Palgrave Macmillan UK,Palgrave Macmillan,Taylor & Francis Ltd
• Subject: Analytics / Applied sciences / Assessed values / Behavioral decision theory / behavioural decision theory / Business and Management / Cost benefit ratio / Decision analysis / decision biases / Decision making / Decision theory / Decision theory. Utility theory / Exact sciences and technology / experiments / Judgment / Management / Modeling / multi-criteria decision analysis / Multiple criteria decision making / Operational research and scientific management / Operational research. Management science / Operations research / Operations Research/Decision Theory / problem structuring / Psychology / Studies / Term weighting / Theoretical Paper / Theoretical Papers