Algebraic solution to constrained bi-criteria decision problem of rating alternatives through pairwise comparisons

TL;DR

This paper introduces a novel algebraic approach using tropical algebra to solve a constrained bi-criteria decision problem based on pairwise comparisons, providing a complete Pareto-optimal solution set.

Contribution

It formulates the decision problem as a bi-objective constrained matrix approximation in tropical algebra, deriving conditions for Pareto optimality and solving the problem analytically.

Findings

Derived Pareto frontier for the bi-criteria problem.

Provided a complete set of Pareto-optimal solutions.

Illustrated the approach with practical examples.

Abstract

We consider a decision-making problem to evaluate absolute ratings of alternatives from the results of their pairwise comparisons according to two criteria, subject to constraints on the ratings. We formulate the problem as a bi-objective optimization problem of constrained matrix approximation in the Chebyshev sense in logarithmic scale. The problem is to approximate the pairwise comparison matrices for each criterion simultaneously by a common consistent matrix of unit rank, which determines the vector of ratings. We represent and solve the optimization problem in the framework of tropical (idempotent) algebra, which deals with the theory and applications of idempotent semirings and semifields. The solution involves the introduction of two parameters that represent the minimum values of approximation error for each matrix and thereby describe the Pareto frontier for the bi-objective problem. The optimization problem then reduces to a parametrized vector inequality. The necessary and sufficient conditions for solutions of the inequality serve to derive the Pareto frontier for the problem. All solutions of the inequality, which correspond to the Pareto frontier, are taken as a complete Pareto-optimal solution to the problem. We apply these results to the decision problem of interest and present illustrative examples.