INCREASING THE VALIDITY OF DECISIONS MADE BY THE PROCESS OF ANALYZING HIERARCHIES BASED ON UTILITY FUNCTIONS

Abstract

The proposed approach to the analysis and selection of alternatives based on utility functions is a development of the hierarchy analysis method developed by T. Saaty. The method consists of analyzing given alternatives by combining the method of analyzing hierarchies and the method of constructing a utility function based on the obtained isoquant maps in the input data space. This method can be used for an arbitrary number of given alternatives. In this case, it seems appropriate to direct the decision maker's efforts to compare not only given alternatives, but also to expand decision-making capabilities.. The selection and ordering of possible alternatives using the proposed method is demonstrated using the example of choosing scenarios for reducing the dependence of cities on the use of fossil fuels and transitioning to the use of renewable energy sources. The calculated characteristics of utility functions are used as criteria for analysis and selection of the optimal alternative. The proposed criteria and alternatives are presented in the form of a hierarchical structure. The results are obtained based on the interaction of software products Matlab and Excel.