Shannon Entropy Weighting Method
ENTROPY (Shannon Entropy Weighting Method) is a weight objective multi-criteria decision-making (MCDM) method introduced by Shannon, C. E. in 1948. It turns a decision matrix of alternatives scored on multiple criteria into a structured, reproducible result.
Key highlights
- Follows a transparent, reproducible computational procedure that can be audited step by step.
- Handles multiple criteria of differing scales and units within a single decision matrix.
Intuition
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How it works
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When to use it
Entropy assigns higher weights to criteria with higher discrimination power (more variation across alternatives). A criterion where all alternatives perform equally (E_j = 1) gets w_j = 0. It is fully data-driven with no DM input. Sensitive to the cost-criterion inversion strategy — ensure consistent treatment.
Strengths & limitations
- Follows a transparent, reproducible computational procedure that can be audited step by step.
- Handles multiple criteria of differing scales and units within a single decision matrix.
- Results depend on the chosen normalisation, weights, and parameter settings.
Common pitfalls
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Sources
- 1.Shannon, C. E. (1948). A mathematical theory of communication. Bell System Technical Journal
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Cite this page
ScholarGate. (2026, June 2). ENTROPY. ScholarGate. https://scholargate.app/decision-making/entropy