Testing the efficiency of two pairwise comparison methods in discrete multiple criteria problems

We test the efficiency of two pairwise comparison methods. The methods studied are Salminen’s piecewise linear prospect theory (PLP) method and the convex cone method by Korhonen, Wallenius, and Zionts (KWZ). The PLP method is based on a piecewise linear difference function. The KWZ method assumes a quasi-concave utility or value function. These methods are tested using randomly generated data sets with 50, 100, 150, and 200 alternatives and from 2 up to 6 criteria. The DM’s preference statements are simulated using linear, quadratic, and Chebycheff value functions and piecewise linear difference functions. Both methods lose their efficiency very rapidly with increasing number of criteria. Our results indicate that pairwise comparison methods are not as efficient as reported in literature.