Article ID: | iaor20043234 |
Country: | Netherlands |
Volume: | 150 |
Issue: | 1 |
Start Page Number: | 204 |
End Page Number: | 219 |
Publication Date: | Oct 2003 |
Journal: | European Journal of Operational Research |
Authors: | Michalowski Wojtek, Karasakal Esra Kktener |
We describe how a multiple criteria decision making (MCDM) modelling framework can be extended to account for one of the behavioral ramifications of a decision making activity, namely, the decision maker's (DM's) perception of his/her current wealth status, referred to as decisional wealth. Within the MCDM framework, decisional wealth reflects the relative achievements of each of the objectives in a given efficient solution. It is our argument that a DM's preferences and the importance of his/her objectives, vary depending on the decisional wealth. Therefore, we use the wealth information and trade-off analysis to guide the search for preferred outcomes. We identify efficient solutions that satisfy a DM's wealth-dependent preferences, and we illustrate the proposed modelling framework with an example.