We demonstrate that multi-criteria analysis (MCA), though initially developed in the operations
research field, can be usefully applied within the context of the stakeholder-driven or institutional
approach to transport project evaluation. We first compare the features of the institutional and neoclassical
approaches to economic evaluation. We then identify a number of conditions to be fulfilled for
the institutional approach to result in a social optimum that is neutral from a distributional perspective.
Such an optimum may not have been intentionally pursued, but may eventually arise as a by-product of
the actions of self-interested, individual stakeholder groups. We illustrate the relevance of our approach
through a number of recent case studies. Policy makers can use our findings as an input for designing
formal decision-making processes, geared towards including stakeholder objectives in transport project
evaluation.
