Criteria and Multi-Criteria Analysis

ECONORIA Decision Lab 05 — Multi-Criteria Analysis

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Decision Lab ↗

POLICY DECISION LAB · LABORATORY 05

Criteria &
Multi-Criteria Analysis.

Make public priorities explicit. Compare options across effectiveness, efficiency, equity, feasibility, resilience and legitimacy—and reveal when a recommendation depends on contested weights rather than dominant evidence.

05 Structured appraisal100 MinutesΣwᵢsᵢⱼ Weighted score
68OPTION A
81OPTION B
73OPTION C

THE PUBLIC-VALUE SCORECARD

One objective is
rarely enough.

Multi-criteria analysis compares alternatives against dimensions that cannot all be expressed credibly in one monetary unit. It structures judgment; it does not remove it.

E₁

Effectiveness

Expected achievement of the policy objective.

E₂

Efficiency

Results relative to resources and opportunity cost.

Q

Equity

Distribution of benefits, costs and risks.

F

Feasibility

Administrative, legal and political deliverability.

R

Resilience

Performance across shocks and uncertain futures.

L

Legitimacy

Procedural fairness, rights and public acceptability.

THE MCDA METHOD

Score transparently.
Test the ranking.

01

Define criteria

Use non-overlapping, decision-relevant and measurable dimensions.

02

Set weights

Represent relative priority through an explicit, documented process.

03

Score options

Use evidence and common scales, recording uncertainty and rationale.

04

Test sensitivity

Change weights and scores to identify robust or fragile rankings.

Vⱼ = Σᵢ wᵢsᵢⱼ    where    Σᵢwᵢ = 1

INTERACTIVE DECISION MATRIX

Change the values.
Watch the ranking.

Weights normalize automatically. Option scores are fixed illustrative evidence; adjust public priorities and observe whether the leading choice remains stable.

WEIGHTED POLICY APPRAISALOption B leads
OPTION Effect. Efficien. Equity Feasib. Resilien. Legitim. Total
NORMALIZED CRITERION WEIGHTS

ROBUSTNESS READINGOption B leads under the current priorities. Test alternative weights before recommending it.

MCDA DISCIPLINE

Transparency does not make
all judgments objective.

01

Avoid double counting

Closely related criteria can give the same benefit excessive influence.

02

Separate evidence and values

Scores describe expected performance; weights describe relative priority.

03

Record uncertainty

A precise score should not conceal weak, conflicting or incomplete evidence.

04

Inspect veto conditions

Legal rights or safety thresholds may not be compensable by high scores elsewhere.

SCIENTIFIC CHECKPOINT

What do criterion
weights represent?

Which interpretation is most accurate?

Continue to Laboratory 6: Scenario Design →