This study presents theoretical proof and empirical evidence of the reduction algorithm convergence for the distance-based inconsistency in pairwise comparisons. Our empirical research shows that the convergence very quick. It usually takes less than 10 reductions to bring the inconsistency of the pairwise comparisons matrix below the assumed threshold of 1/3 (sufficient for most applications). We believe that this is the first Monte Carlo study demonstrating such results for the convergence speed of inconsistency reduction in pairwise comparisons.
This study demonstrates how a government procurement process could be improved by the pairwise comparisons method. A case study, related to assessment of project proposals is used for demonstration purpose. The project proposals were requested by a Canadian government agency to assess the environmental and public safety hazards of abandoned mines. However, the presented model is applicable (with easy-to-implement modifications) to any other case of government procurement.
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