Interactive Relative Decision Analysis of Acquisition and Transaction

Abstract

The article aims to present a multicriteria decision analysis method named by the acronym ADRIANA (Análise Decisória Relativa Interativa de Aquisição e Não-Aquisição). The method is inspired by Richard Thaler's Behavioral Accounting work in which it divides total utility into the sum of acquisition and transaction utilities. In addition to an overview of its business management applications as a decision-making tool, the paper provides an example of its functionality and concludes with the graphical representation of Thaler value using the Tversky and Kahneman curve, Prospect Theory. The method is limited to numerical data and presents order reversal problems when entering or exiting alternatives and / or criteria. A numerical example is presented, without application of real data for didactic purposes, due to the seminal and debut characteristics of the method.

Keywords: Decision Support in Business. Multicriteria Decision Analysis. Utility of Acquisition and Transaction. Behavioral Accounting.