The analytic hierarchy process: An empirical examination of aggregation and hierarchical...

Key Points

• To investigate the aggregation and hierarchical formulation processes in the analytic hierarchy process (AHP) among middle management executives.
• Employed the analytic hierarchy process (AHP) for analyzing financial ratios.
• Compared traditional AHP procedures with elicited versus aggregated relative importance.
• Conducted the study in the United States.
• Found significant differences in the use of traditional AHP versus alternative aggregation methods.
• Elicitation of relative importance showed varying impacts on decision outcomes.
• Demonstrated the importance of hierarchical formulation in financial ratio analysis.