Parametric probabilistic dominance – multicriteria model

The paper shows the chosen elements of stochastic dominance and probabilistic dominance theory, as well as their utilization in multicriteria decision support problems. First part of this work contains the definitions of stochastic dominations. Second part contains the most essential part of the paper. It describes the probabilistic dominance definition and its modification made by author. Using the property of probabilistic dominance author proposes ß max, which defines the maximum level of probability. Next author defines the Parametric Probablistic Dominance PPD using the ß max as well as new parameter – ß * which allows to chose the strength of the domination. The last, third part of the study shows the utilization of parametric probabilistic dominance to solve multicriteria decision support problem. By changing the value of parameter ß * in our multicriteria model we can put more strength on the stochastic dominance, or on the probabilistic dominance.