Sangheon Han

A practical approaches to decrease the consistency index in AHP

The Consistency is the most important measurement of the results from pairwise comparison in the AHP. Pairwise comparison is a method to calculate the weights for each element in order to perform a comparison of two advantages. The consistency of the AHP will be determined by the value of C.I. from the pairwise comparison table. If its value is for the case exceeding 0.1 (Saatys criteria 1980) [12] is not consistent, pairwise comparison has to perform again. A longstanding weakness of AHP is explored by considering combinations of research costs, which seeks to address a difficult problem. This article aims to develop an efficient method to decrease the value of C.I. using an evolutionary algorithm and random search approach. Finally, we propose a software solution and discuss its effectiveness.

An analytic hierarchy process approach to fixed income market portfolio — The case of South Korean bond market

This paper proposes a Korea fixed income portfolio by using the analytic hierarchy process (AHP). We find that each criterion plays an important role in the portfolio. Nevertheless, the effect of the AHP-portfolio on the total returns is trivial. Therefore, we determine that the decision maker prefers the government bond to the others. We also determine that the portfolio generated by AHP accords with the decision makers preference.

Market Size, Franchisee’s Marketing Activity, and Two Royalty Structures as Incentive Schemes: Margin-Based Royalty Versus Sales-Based Royalty

This paper studies the two royalty structures: Sales-based Royalty (SBR) and Margin-based Royalty (MBR). From the standpoint of a franchisor, if it is necessary for a franchisee to engage in a marketing activity, the SBR grants a more high-powered incentive scheme to the franchisee than the MBR does. On the other hand, the latter plays a role in alleviating the double markup problem. This paper analyzes how the optimal royalty structures will change according to market size. It is shown that when the market size is large, the franchisor should choose the SBR structure in order to provide its franchisee the high-powered incentive scheme. Consequently, if the market size is small, the franchisor should implement the MBR structure to alleviate the double marginalization problem. This study also shows that the franchisee’s marketing activity level under the SBR is always larger than that under the MBR, regardless of the market size.