THE RELATIONSHIP BETWEEN THE ANALYTIC HIERARCHY PROCESS AND THE ADDITIVE VALUE FUNCTION*

Abstract

ABSTRACT The relationship between the analytical hierarchy process (AHP), a multiple‐criteria decision method based on the properties of the eigenvalues of positive reciprocal matrices, and the additive value function is studied. The AHP is compared with the standard method of building an additive value function. The advantages and disadvantages of each method are discussed and a new method that uses elements of both is proposed. The proposed method relies on the AHP for building the unidimensional value functions and incorporates the systematic use of pairwise comparisons into the standard method of estimating the weights of the additive value function. Subject Area: Decision Processes .