University of Hertfordshire

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  • s153

    Final published version, 473 KB, PDF document

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Original languageEnglish
PublisherUniversity of Hertfordshire
Pages28
Publication statusPublished - 2014

Publication series

NameHertfordshire Business School Working Paper

Abstract

Simple additive weighting is a well-known method for scoring and ranking alternative options based on multiple attributes. However the pitfalls associated with this approach are not widely appreciated. For example, the apparently innocuous step of normalizing the various attribute data in order to obtain
comparable figures leads to markedly different rankings depending on which normalization is chosen.
When the criteria are aggregated using multiplication such difficulties are avoided because normalization is no longer required. This removes an important source of subjectivity in the analysis because the analyst no longer has to make a choice of normalization type. Moreover, it also permits the modelling of more
realistic preference behaviour, such as diminishing marginal utility, which simple additive weighting does not provide. The multiplicative approach also has advantages when aggregating the ratings of panel members. This method is not new but has been ignored for too long by both practitioners and teachers. We
aim to present it in a non-technical way and illustrate its use with data on business schools

Notes

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