Inconsistency of the judgment matrix in the AHP method and the decision maker's knowledge
Statistical Finance
2009-11-13 v3 Data Analysis, Statistics and Probability
Abstract
In this paper we propose a method for a quantitative estimation of the decision maker's knowledge in the context of the Analytic Hierarchy Process (AHP) in cases, where the judgment matrix is inconsistent. We show that the matrix of deviation from the transitivity condition corresponds to the rate matrix for transaction costs in the financial market. For the quantitative estimation of the decision maker's professionalism, we apply the Ising model and thermodynamics tools.
Cite
@article{arxiv.0806.4876,
title = {Inconsistency of the judgment matrix in the AHP method and the decision maker's knowledge},
author = {Anna Szczypinska and Edward W. Piotrowski},
journal= {arXiv preprint arXiv:0806.4876},
year = {2009}
}
Comments
17 pages