STOCHASTIC-DOMINANCE IN MULTICRITERION ANALYSIS UNDER RISK

Traditionally, in the literature on the modelling of decision aids one notes the propensity to treat expected utility models and outranking relation models as rivals. It may be possible, however, to benefit fro m the use of both approaches in a risky decision context. Stochastic d ominance conditions can be used to establish, for each criterion, the preferences of a decision maker and to characterise them by a concave or convex utility function. Two levels of complexity in preference eli citation, designated as clear and unclear, are distinguished. Only in the case of unclear preferences is it potentially interesting to attem pt to estimate the value function of the decision maker, thus obtainin g his (her) preferences with a reduced number of questions. The number of questions that must be asked of the decision maker depends upon th e level of the concordance threshold that he(she) requires in the cons truction of the outranking relations using the ELECTRE method.