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Article

Risk Attitude in Multicriteria Decision Analysis: A Compromise Approach

by 1,2,*,† and 3,*,†
1
ETSI Informáticos, Campus de Montegancedo, Universidad Politécnica de Madrid, Boadilla del Monte, 28660 Madrid, Spain
2
Department of Financial and Actuarial Economics and Statistics, Facultad de Ciencias Económicas y Empresariales, Campus de Somosaguas, Universidad Complutense de Madrid, Pozuelo de Alarcón, 28223 Madrid, Spain
3
Department of Artificial Intelligence, Campus de Montegancedo, Universidad Politécnica de Madrid, Boadilla del Monte, 28660 Madrid, Spain
*
Authors to whom correspondence should be addressed.
These authors contributed equally to this work.
Academic Editors: Adel Guitouni, Loubna Benabbou and Hans Wehn
Int. J. Environ. Res. Public Health 2021, 18(12), 6536; https://doi.org/10.3390/ijerph18126536
Received: 25 April 2021 / Revised: 4 June 2021 / Accepted: 13 June 2021 / Published: 17 June 2021
In fields on which decisions need to be taken including health, as we are seeing nowadays in 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 a relevant factor. Traditionally, the shape of a utility function is the only element that represents the decision maker’s risk attitude. The eduction process of multi-attribute utility functions implies some operational drawbacks, and it is not always easy. In this paper, we propose a new element with which the decision maker’s risk attitude can be implemented: the selection of the stochastic efficiency concept to be used during a decision analysis. We suggest representing the risk attitude as a conflict between 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 the parameter that is introduced in a new risk attitude formulation. This parameter reflects the trade-off between the two classical poles with respect to risk attitude. Thus, we have produced a new stochastic efficiency concept that we call Compromise Efficiency. View Full-Text
Keywords: stochastic multicriteria decision; stochastic efficiency; risk attitudes; Extended Goal Programming stochastic multicriteria decision; stochastic efficiency; risk attitudes; Extended Goal Programming
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MDPI and ACS Style

Ribes, J.; González-Pachón, J. Risk Attitude in Multicriteria Decision Analysis: A Compromise Approach. Int. J. Environ. Res. Public Health 2021, 18, 6536. https://doi.org/10.3390/ijerph18126536

AMA Style

Ribes J, González-Pachón J. Risk Attitude in Multicriteria Decision Analysis: A Compromise Approach. International Journal of Environmental Research and Public Health. 2021; 18(12):6536. https://doi.org/10.3390/ijerph18126536

Chicago/Turabian Style

Ribes, Juan, and Jacinto González-Pachón. 2021. "Risk Attitude in Multicriteria Decision Analysis: A Compromise Approach" International Journal of Environmental Research and Public Health 18, no. 12: 6536. https://doi.org/10.3390/ijerph18126536

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