Multiattribute Decision Making by Sequential Resource Allocation

A new approach is proposed for addressing decision problems in which the outcomes are multidimensional and possibly interdependent. The method is based on decomposing the problem into a sequence of simpler decision problems. The solution to each subproblem is elicited from the decision-maker by converting it to a simple resource allocation task that may be solved by inspection. Our experience indicates that these resource allocation tasks are considerably simpler and more intuitive than the local tradeoff assessments required by existing iterative methods. The information provided by the decision-maker at each stage is used to generate a sequence of successively improving attribute bundles converging to the solution to the original complex decision problem. The approach is illustrated in the context of a financial planning problem.