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Economic Analysis: Theory and Practice
 

Specifics of multi-criteria decision-making under probabilistic uncertainty by economic entities of the housing and utilities sector

Vol. 15, Iss. 3, MARCH 2016

PDF  Article PDF Version

Received: 13 January 2016

Accepted: 17 February 2016

Available online: 29 March 2016

Subject Heading: MATHEMATICAL METHODS AND MODELS

JEL Classification: С02, С65, D81, L26, L97

Pages: 194-202

Larin S.N. Central Economics and Mathematics Institute of Russian Academy of Sciences, Moscow, Russian Federation
larinsn@cemi.rssi.ru

Lazareva L.Yu. Institute of International Accounting Standards and Management, Moscow, Russian Federation
lazarlu@rambler.ru

Yuryatina N.N. Institute of International Accounting Standards and Management, Moscow, Russian Federation
jurjatina@rambler.ru

Subject Housing and utilities is a sphere, where economic entities of over thirty sectors of the Russian economy are operating. However, the efficiency of their interaction is still low. The article considers effective solutions to multicriteria problems related to economic entities' interaction under uncertainty.
Objectives The objective is to formalize preferences of economic actors and choose effective solutions as applied to the preferences of one entity or their particular combination.
Methods We explored a number of techniques and identified the most efficient economic and mathematical tools, which enable economic actors to consider the specifics of choosing and making multicriteria decision under probabilistic uncertainty.
Results The paper solves the problem of certain income generation under probabilistic uncertainty through identifying the preferences of economic actors based on the set of probability distributions. We obtained a solution for asymmetric distributions, using the preference indicator based on the set of probability distributions and the utility function.
Conclusions We underpin the need for consideration of probabilistic uncertainty factors in the interaction of economic entities of the housing and utilities sector, describe approaches to the use of existing tools when choosing and making multicriteria decisions. These methods may help simulate mutual relations of economic entities under probabilistic uncertainty.

Keywords: decision-making, probabilistic uncertainty, multicriteriality

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