What are Noncompensatory Rules?
Noncompensatory rules are rules used in decision making processes which are based on the elimination of certain alternatives that do not meet certain criteria. Unlike compensatory rules, which weigh all the criteria for potential decisions and assign a score to each alternative, noncompensatory rules are more like a “yes or no” process, where an alternative is either accepted or rejected based on the criteria.
Examples of Noncompensatory Rules
Noncompensatory rules are used in a variety of decision making processes, from business to marketing to engineering.
- In business, a noncompensatory rule might be used to decide whether or not to accept a job offer. All offers must meet a certain salary requirement in order to be considered. If the offer does not meet the requirement, it is rejected.
- In marketing, a noncompensatory rule might be used to decide which products to promote. All products must meet certain criteria in order to be promoted, such as having a certain level of quality or being within a certain price range. Any products that do not meet these criteria are not promoted.
- In engineering, a noncompensatory rule might be used to decide which designs to use for a project. All designs must meet certain criteria in order to be approved, such as being cost-effective and meeting safety standards. Any designs that do not meet these criteria are not used.
Conclusion
Noncompensatory rules are a useful tool for decision making, as they provide a simple way to eliminate unacceptable alternatives and arrive at a final decision.Decision RuleMulti-criteria Decision AnalysisCompensatory Decision Rule