Todim-fse: a Multicriteria Classification Method Based on Prospect Theory

This paper introduces TODIM-FSE, a multicriteria method for classifying alternatives based on Prospect Theory. TODIM-FSE therefore relies on the TODIM method combined with the Fuzzy Synthetic Evaluation approach. TODIM-FSE makes use of the innovative “contribution” concept, not used previously for multicriteria classification purposes. This notion is central to the classification procedure of TODIM-FSE as it is associated to the contribution of each criterion to the classification of a given alternative in a predefined category. The TODIM-FSE method is explained in this paper by means of an application example and its steps are outlined. The application example has to do with the selection of trainee candidates for a company in the area of information technology. The classification of the candidates allows to identify the best of them, which is typically done at the first stage of the selection process. Some of the evaluation criteria considered in the study were: computers skills, mastery of technical English, and previous working experience in the field. In the second stage of that process another procedure ranks the best candidates. TODIM-FSE can be easily programmed in spreadsheets so as to be made available to professionals without a sound knowledge of either Multiple Criteria Decision Analysis or Prospect Theory. Currently the authors are working on a series of applications for validating TODIM-FSE in a broader way.