Mindsets, rationality and emotion in Multi-criteria Decision Analysis

Abstract

This paper discusses the paradigm of multi-criteria decision analysis (MCDA), and relates it to other disciplines. It concludes that MCDA needs a larger, not smaller, emphasis on values and subjectivity to increase rationality in decision-making. The paper bases the argument on a conciliation of ethics, philosophy, neuro-psychology and management paradigms. It observes that the MCDA ‘mindset’ relates to consequentialism, as opposed to virtue ethics and rule based ethics. Virtues and rules play an important role in practical decision-making, however. Findings in neuro-psychology show that reliable decision-making requires emotions. Elicitation of emotions is therefore required in MCDA value trade-off processes. This leads to a concept of emotional rationality, which defines rationality as a four-dimensional concept that includes well-founded values and breaks radically with common notions of rationality. Virtues do not easily lend themselves to value trade-off, but questions of virtue usually creates strong social emotions, as opposed to the feebler global emotions that may arise in connection conventional trade-off of end values. The conclusion is that MCDA should not be shy of subjectivity and emotion, but instead put more emphasis on it to increase rationality. A part of this challenge is how to deal with questions of virtue in decision-making. Copyright © 2006 John Wiley & Sons, Ltd.