Multi Criterial Modelling based on Dominance and Social Choice Rules: A DSS Proposal for Stock Selection Problem

The problem of multicriterial ranking or choice has become more complicated because of the existence of large number of available alternatives, in the new era. The compensatory methods require to determine criteria “weights” and to make exact value or utility estimates for the alternatives w.r.t. criteria. For this aim, sometimes they demand decision maker to make hundreds of pairwise comparisons between alternatives. Therefore, most of them are only applicable for the problems consist of small sets of alternatives and precise measurements. For large sets, using simple procedures that require less information is a suitable way. Such techniques stem from the classical -social- choice theory, non-compensatory multicriterial models and their multistage structures. Since the studies that employ these methods on real data sets are very rare, this study illustrates their applicability on the stock selection and ranking problem in Istanbul Stock Exchange (ISE), Turkey. A DSS is proposed for their usage on similar problems