Choice behavior in interactive multiple-criteria decision making

Choice behavior in an interactive multiple-criteria decision making environment is examined experimentally. A ‘free search’ discrete visual interactive reference direction approach was used on a microcomputer by management students to solve two realistic and relevant multiple-criteria decision problems. The results revealed persistent patterns of intransitive choice behavior, and an unexpectedly rapid degree of convergence of the reference direction approach on a preferred solution. The results can be explained using Tversky’s additive utility difference model and Kahneman-Tversky’s prospect theory. The implications of the results for the design of interactive multiple-criteria decision procedures are discussed.