Risk Attitude in Multicriteria Decision Analysis: A Compromise Approach

  1. Juan Ribes Rossiñol de Zagranada 2
  2. González-Pachón, Jacinto 1
  1. 1 Universidad Politécnica de Madrid
    info

    Universidad Politécnica de Madrid

    Madrid, España

    ROR https://ror.org/03n6nwv02

  2. 2 Universidad Complutense de Madrid
    info

    Universidad Complutense de Madrid

    Madrid, España

    ROR 02p0gd045

Revista:
International Journal of Environmental Research and Public Health

ISSN: 1660-4601

Año de publicación: 2021

Volumen: 18

Número: 12

Páginas: 6536

Tipo: Artículo

DOI: 10.3390/IJERPH18126536 GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: International Journal of Environmental Research and Public Health

Resumen

: In fields on which decisions need to be taken including health, as we are seeing nowadaysin the COVID-19 crisis, decision-makers face multiple criteria and results with a random component.In stochastic multicriteria decision-making models, the risk attitude of the decision maker is arelevant factor. Traditionally, the shape of a utility function is the only element that represents thedecision maker’s risk attitude. The eduction process of multi-attribute utility functions implies someoperational drawbacks, and it is not always easy. In this paper, we propose a new element withwhich the decision maker’s risk attitude can be implemented: the selection of the stochastic efficiencyconcept to be used during a decision analysis. We suggest representing the risk attitude as a conflictbetween two poles: risk neutral attitude, associated with best expectations, and risk aversion attitude,associated with a lower uncertainty. The Extended Goal Programming formulation has inspired theparameter that is introduced in a new risk attitude formulation. This parameter reflects the trade-offbetween the two classical poles with respect to risk attitude. Thus, we have produced a new stochasticefficiency concept that we call Compromise Efficiency.

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