Open AccessIMPROVED AHP-GROUP DECISION MAKING FOR INVESTMENT STRATEGY SELECTION
Author(s) -
Wenshuai Wu,
Gang Kou,
Yi Peng,
Daji Ergu
Publication year - 2012
Publication title -
technological and economic development of economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.634
H-Index - 47
eISSN - 2029-4921
pISSN - 2029-4913
DOI - 10.3846/20294913.2012.680520
Subject(s) - analytic hierarchy process , group decision making , investment (military) , selection (genetic algorithm) , computer science , reciprocal , order (exchange) , operations research , hierarchy , risk analysis (engineering) , management science , artificial intelligence , engineering , economics , business , finance , psychology , political science , market economy , social psychology , linguistics , philosophy , politics , law
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.