AHP in nonlinear scaling: from two-envelope problem to modeling by predictors

Abstract Paper aims Extending the AHP abilities to new areas from explaining the famous Two-Envelope paradox to finding priorities as functions of auxiliary variables is suggested. Originality The proposed innovative and advantageous approach permits to find the non-constant priorities via regress...

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Main Author: Stan Lipovetsky
Format: Article
Language:English
Published: Associação Brasileira de Engenharia de Produção (ABEPRO)
Series:Production
Subjects:
Online Access:http://www.scielo.br/pdf/prod/v31/0103-6513-prod-31-e20210007.pdf
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author Stan Lipovetsky
author_facet Stan Lipovetsky
author_sort Stan Lipovetsky
collection DOAJ
description Abstract Paper aims Extending the AHP abilities to new areas from explaining the famous Two-Envelope paradox to finding priorities as functions of auxiliary variables is suggested. Originality The proposed innovative and advantageous approach permits to find the non-constant priorities via regression modeling for the exponential or Cobb-Douglas production functions. Research method Transforming the ratio scale into the additive or logarithmic scales, which correspond to the multiplicative utility function, opens new possibilities in the multiple-criteria decision making. Main findings Two-Envelop problem is resolved, priority vectors are presented as functions by auxiliary variables, preferences are predicted and profiled by predictors. Implications for theory and practice The suggested techniques open novel possibilities of multiple-criteria decisions helping to researchers and managers to discover useful features of priority behavior due to the demographic, socio-economic, or technical properties of the compared alternatives, and to find optimal solutions for individual customers.
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institution Kabale University
issn 1980-5411
language English
publisher Associação Brasileira de Engenharia de Produção (ABEPRO)
record_format Article
series Production
spelling doaj-art-a2baaea85b984d3c8b3dc5dac61b1b7e2025-08-20T03:38:44ZengAssociação Brasileira de Engenharia de Produção (ABEPRO)Production1980-541110.1590/0103-6513.20210007AHP in nonlinear scaling: from two-envelope problem to modeling by predictorsStan LipovetskyAbstract Paper aims Extending the AHP abilities to new areas from explaining the famous Two-Envelope paradox to finding priorities as functions of auxiliary variables is suggested. Originality The proposed innovative and advantageous approach permits to find the non-constant priorities via regression modeling for the exponential or Cobb-Douglas production functions. Research method Transforming the ratio scale into the additive or logarithmic scales, which correspond to the multiplicative utility function, opens new possibilities in the multiple-criteria decision making. Main findings Two-Envelop problem is resolved, priority vectors are presented as functions by auxiliary variables, preferences are predicted and profiled by predictors. Implications for theory and practice The suggested techniques open novel possibilities of multiple-criteria decisions helping to researchers and managers to discover useful features of priority behavior due to the demographic, socio-economic, or technical properties of the compared alternatives, and to find optimal solutions for individual customers.http://www.scielo.br/pdf/prod/v31/0103-6513-prod-31-e20210007.pdfAHPTwo-envelope paradoxNonlinear scalingMultiplicative utilityPriority as functionExponential functionCobb-Douglas production function
spellingShingle Stan Lipovetsky
AHP in nonlinear scaling: from two-envelope problem to modeling by predictors
Production
AHP
Two-envelope paradox
Nonlinear scaling
Multiplicative utility
Priority as function
Exponential function
Cobb-Douglas production function
title AHP in nonlinear scaling: from two-envelope problem to modeling by predictors
title_full AHP in nonlinear scaling: from two-envelope problem to modeling by predictors
title_fullStr AHP in nonlinear scaling: from two-envelope problem to modeling by predictors
title_full_unstemmed AHP in nonlinear scaling: from two-envelope problem to modeling by predictors
title_short AHP in nonlinear scaling: from two-envelope problem to modeling by predictors
title_sort ahp in nonlinear scaling from two envelope problem to modeling by predictors
topic AHP
Two-envelope paradox
Nonlinear scaling
Multiplicative utility
Priority as function
Exponential function
Cobb-Douglas production function
url http://www.scielo.br/pdf/prod/v31/0103-6513-prod-31-e20210007.pdf
work_keys_str_mv AT stanlipovetsky ahpinnonlinearscalingfromtwoenvelopeproblemtomodelingbypredictors