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Improved AHP-group decision making for investment strategy selection

    Wenshuai Wu Affiliation
    ; Gang Kou Affiliation
    ; Yi Peng Affiliation
    ; Daji Ergu Affiliation

Abstract

Investment strategy selection relies heavily on personal experience and behavior. This paper proposes an improved Analytical Hierarchy Process-group decision making (IAHP-GDM) model to reduce investment risk. This model applies the method of least squares to adjust group decision matrix in order to satisfy the property of positive reciprocal matrix in AHP. In addition, five experts from related fields are invited to evaluate investment risk that takes group wisdom to eliminate personal bias. An empirical study is conducted to compare the proposed model to AHP for group decision making model. The results show that the IAHP-GDM model is not only accurate and effective, but also consistent with realistic investment environment.

Keyword : group decision making, Analytic Hierarchy Process, MCDM, investment management

How to Cite
Wu, W., Kou, G., Peng, Y., & Ergu, D. (2012). Improved AHP-group decision making for investment strategy selection. Technological and Economic Development of Economy, 18(2), 299-316. https://doi.org/10.3846/20294913.2012.680520
Published in Issue
Jun 29, 2012
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This work is licensed under a Creative Commons Attribution 4.0 International License.