MULTICRITERIA METHODS FOR RESOURCE PLANNING - AN EXPERIMENTAL COMPARISON

Multicriteria decision making (MCDM) methods are widely used for compa ring alternatives when there are multiple objectives. For instance, ut ilities use them for resource bidding, externality quantification, fac ility siting, and resource planning. There are many alternative method s, differing in their ease of use, validity, results, and appropriaten ess to resource planning. Several MCDM methods are compared in an expe riment involving the choice of resource portfolio for Seattle City Lig ht. Planners and interest group representatives applied direct weight assessment, tradeoff weight assessment, additive value functions, and goal programming. Most of the participants concluded that MCDM methods could promote insight and confidence in decision making. However, we also confirmed the existence of method biases previously identified by psychologists. No single method emerged as best, Thus, application of two or more methods as consistency checks is recommended to guard aga inst bias, and to stimulate insight.