Title: Multi-objective decision making in macro- and micro-economics with application of the MULTIMOORA method
Authors: Willem K.M. Brauers; Edmundas Kazimieras Zavadskas; Romualdas Ginevicius
Addresses: Faculty of Applied Economics, University of Antwerp, Antwerp, Belgium ' Civil Engineering Faculty, Vilnius Gediminas Technical University, Vilnius, Lithuania ' Department of Economics and Management of Enterprises, Faculty of Business Management, Vilnius Gediminas Technical University, Lithuania
Abstract: MULTIMOORA, the most effective method to respond to normalisation and importance of different objectives, substitutes by dimensionless measurements the use of weights; avoids the Condorcet-Arrow paradox by starting from a decision matrix instead of comparison two by two and is composed of three methods controlling each other. The ratio system of MOORA goes for a ratio system with each response of an alternative on an objective compared to a positive denominator, representative for all alternatives concerning that objective, ending with a total of objectives to be maximised, the objectives to be minimised subtracted. The reference point approach is the second method in MOORA by applying the ratios found earlier and whereby a maximal objective reference point is chosen. Finally, the MULTIMOORA method adds a third method, the full multiplicative form: all elements per row in the decision matrix are multiplied. Applications in macro and micro economics illustrate the issue.
Keywords: Keynes; weights; normalisation; multi-objective optimisation; ratio analysis; MOORA; multiplicative form; reference point method; MULTIMOORA; dominance; multi-objective decision making; macroeconomics; microeconomics.
International Journal of Applied Nonlinear Science, 2015 Vol.2 No.1/2, pp.75 - 99
Received: 24 Nov 2014
Accepted: 28 Jun 2015
Published online: 11 May 2016 *