The Analytic Hierarchy Process and the Theory of Measurement

  • Authors:
  • Michele Bernasconi;Christine Choirat;Raffaello Seri

  • Affiliations:
  • Dipartimento di Scienze Economiche and SSE, Università “Ca' Foscari,” I-30121 Venezia, Italy;Department of Quantitative Methods, School of Economics and Business Management, Universidad de Navarra, E-31080 Pamplona, Spain;Dipartimento di Economia, Università dell'Insubria, I-21100 Varese, Italy

  • Venue:
  • Management Science
  • Year:
  • 2010

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Abstract

The analytic hierarchy process (AHP) is a decision-making procedure widely used in management for establishing priorities in multicriteria decision problems. Underlying the AHP is the theory of ratio-scale measures developed in psychophysics since the middle of the last century. It is, however, well known that classical ratio-scaling approaches have several problems. We reconsider the AHP in the light of the modern theory of measurement based on the so-called separable representations recently axiomatized in mathematical psychology. We provide various theoretical and empirical results on the extent to which the AHP can be considered a reliable decision-making procedure in terms of the modern theory of subjective measurement.