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ANALYZING PREFERENCES FOR INVESTMENT PROJECTS: A MULTIDIMENSIONAL SCALING APPROACH *
Author(s) -
Soutar Geoffrey N.,
Ascui Alvaro F.
Publication year - 1980
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1980.tb01152.x
Subject(s) - multidimensional scaling , preference , investment (military) , computer science , management science , operations research , risk analysis (engineering) , economics , microeconomics , business , mathematics , machine learning , politics , political science , law
Most investment analysis methods use some type of benefit/cost analysis procedure to determine project desirability. This paper examines an alternative method that uses multidimensional scaling methods to determine project desirability on the basis of preference rather than economic feasibility. The underlying model is outlined, and the results of a pilot study designed to determine the usefulness of the proposed methodology are outlined. It is concluded that these suggested procedures are useful adjuncts to conventional methods and that they should be considered by decision makers.