Decisions
40 min

Even swaps

Trade a gain on one criterion for a loss on another until criteria become equal across options, then delete them, until one option is left.

Time cost
40 min
Output
A shrinking table and the exchange rate used at each swap.
Steps
6
Run it — Weighted matrix

Use when

  • A weighted matrix has failed to separate the leaders.
  • You distrust arbitrary weights but can judge concrete trades.
  • Criteria are in different units and forcing them onto one scale feels false.

Do not use when

  • There are more than about five options — the swapping becomes long.
  • You cannot state a trade in real units, which makes each swap a guess.

Inputs required

  • A consequences table in natural units
  • Willingness to state what a difference is worth

Procedure

  1. 01

    Build the table

    Options down the side, criteria across, cells in natural units: pounds, minutes, square metres. No scores.

  2. 02

    Delete dominated options

    Any option worse than another on every criterion goes, with no trade required.

  3. 03

    Pick a criterion to eliminate

    Choose one where the options are close, since a small difference is easier to price honestly.

  4. 04

    Make the swap

    Ask: what change on criterion B would exactly compensate for this difference on criterion A? Apply that change to the cell. You have now moved value between columns without changing the option’s overall worth.

  5. 05

    Delete the equal column

    Once all options are equal on a criterion, that criterion cannot affect the choice. Remove it. The table shrinks by one column.

  6. 06

    Repeat until one remains

    Each round removes a column or an option. The process terminates, and it terminates on a comparison you made explicitly rather than on a weight you guessed.

Characteristic failure mode

Swapping at inconsistent rates. Pricing ten minutes of commute at £40 in one swap and £15 in another produces a result driven by the order of the swaps rather than by preference.

Worked example

Two flats left after dominance: A is £1,150 with a 40-minute commute; B is £1,280 with 25 minutes.

  1. 01Ask directly: what would you pay to remove 15 minutes each way? Answer: about £100 a month.
  2. 02Swap: credit A with £100 of value, making it effectively £1,050 against B’s £1,280 at equal commute.
  3. 03Commute is now equal and is deleted.

Result

A wins by £230 of stated preference. The number came from one question asked once, rather than from a weight nobody could defend.

Where to go next

Also cited by
Opportunity-cost framing · Dominance and Pareto elimination