Journal article
On the Choice of Baselines in Multiattribute Portfolio Analysis: A Cautionary Note
Abstract
In multiattribute portfolio optimization, a decision maker must evaluate a number of projects on multiple dimensions and then select the set of projects that optimizes the portfolio's overall value. In this note, we discuss the importance of establishing an appropriate baseline score for not doing a project in multiattribute portfolio analysis. We believe that practitioners often implicitly assume that not doing a project results in the worst …
Authors
Clemen RT; Smith JE
Journal
Decision Analysis, Vol. 6, No. 4, pp. 256–262
Publisher
Institute for Operations Research and the Management Sciences (INFORMS)
Publication Date
December 2009
DOI
10.1287/deca.1090.0158
ISSN
1545-8490