A prospect theory-based three-way decision model

Wang, Tianxing; Li, Huaxiong; Zhou, Xianzhong; Huang, Bing; Zhu, Haibin

doi:10.1016/j.knosys.2020.106129

Cited by 79 publications

(11 citation statements)

References 64 publications

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“…Based on the prospect theory, the results are consistent with Wang et al, (2020). The information presented with a positive frame makes decision-makers avoid risk rather than facing uncertainty risks by stopping the project.…”

Section: External Risk Perception Of Positive Information Framing Psa...supporting

confidence: 75%

“…However, they are reluctant to invest when the company suffers losses. In line with this, Wang et al, (2020) stated that investors focus more on information about their investments' gain or return and loss or gain. When information is presented as high gain or return, investors readily accept risk, hoping for future higher gains.…”

Section: Effects Of Framing Informationmentioning

confidence: 91%

“…Non-professional investors process information differently from professional investors. They read the financial statements in the order in which they are presented, obtaining unstructured details because they lack valuations (Wang et al, 2020). Therefore, reporting segment operations in different forms does not lead to different investment decisions.…”

Section: External Risk Perception Of Positive Information Framing Psa...mentioning

confidence: 99%

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Information Framing And Locus Of Control Effect On Investors’ Interpretation Of Risk

Husnatarina

2022

Jurnal Akuntansi

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This study aimed to determine the comparison of IFRS 8 segment reporting with PSAK 5 based on framing information with external risk interpretation. Locus of control, proxied in internal risk preferences analysis by non-professional investors, was also determined. This was an experimental study with a 2x2x2 factorial design between subjects. The subjects comprised 133 novice investors in the Central Kalimantan Investor Community. Furthermore, the data were analyzed using the Analysis of Variance (ANOVA) while the Two Ways Anova Test was used for hypothesis testing. The results showed that, in segment information in IFRS 8 and PSAK 5 stated in positive and negative framing, non-professional investors highly interpret external risk in IFRS 8 cases. Therefore, segment information in IFRS 8 and PSAK 5 expressed positively and negatively is significantly similar to internal risk preferences. However, the hypotheses on locus of control variables were not supported because non-professional investors lack enough experience.

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Section: External Risk Perception Of Positive Information Framing Psa...supporting

confidence: 75%

Section: Effects Of Framing Informationmentioning

confidence: 91%

Section: External Risk Perception Of Positive Information Framing Psa...mentioning

confidence: 99%

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Information Framing And Locus Of Control Effect On Investors’ Interpretation Of Risk

Husnatarina

2022

Jurnal Akuntansi

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“…In addition, Kahneman put forward Prospect Theory from the psychological point of view [33]. This theory can reasonably explain the different psychological perceptions of participants in the face of gains and losses, and can more accurately simulate the psychological characteristics of people in the decision-making process [34]. It can be seen that Mental Accounts and Prospect Theory (MA-PT) can be combined with the bounded rationality of people, which are more suitable for the actual situation when facing the choice of strategies.…”

Section: Introductionmentioning

confidence: 99%

Tripartite Evolutionary Game Analysis for Rumor Spreading on Weibo Based on MA-PT

2021

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With the rapid development of social media, Weibo rumors have increasingly attracted widespread attention. To maintain sustainable development of network ecology, it is necessary to clarify the evolution law of rumor propagation. First, evolutionary game model is applied to examine the interaction mechanisms of complex behaviors between Weibo rumor makers, Weibo users and governments in accordance with MA-PT (Mental Accounts and Prospect Theory). Next, the replication dynamic equation is used to solve the equilibrium strategy points of each player. It was found that the evolution game does not have a stable equilibrium point. Finally, we conduct empirical simulation to verify the model and primary conclusions. Results demonstrate that, 1) The reference value plays an important role in the strategic choices of players.2) With the high value of psychological satisfaction of "Herding effect", Weibo users choose to repost rumors.3) Increasing the value of punishment, Weibo rumor makers are less likely to adopt the strategy of making rumors. 4) The higher loss of social unrest can encourage governments to adopt strict management strategies to maintain good online order. The results can guide governments to make better decisions in network governance.

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“…e prospect theory, as a behavior decision-making method, can effectively model the risk preference of decision-maker in uncertain decision-making process. In addition, the prospect theory has been extended to various types of alternative selection problems for modeling the risk preference of decision-maker (Liu and Liu [20], Li et al [21], Ying et al [22], Sun et al [23], Wan et al [24], and Wang et al [25]). For instance, in order to determine the most suitable solar water heater, Liu et al [26] developed the traditional prospect theory with linguistic terms.…”

Section: Introductionmentioning

confidence: 99%

An Extended Prospect Theory for Robot Evaluation and Selection considering Risk Preferences and Interactive Criteria

Zhang

Cheng

2021

Mathematical Problems in Engineering

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The evaluation and selection process can be regarded as a complex multiple criteria decision analysis (MCDA) problem which involves various interaction relationships among criteria under high uncertain environment. In addition, the decision-makers are always bounded rational in the risk decision-making process. However, the current robot evaluation and selection approach seldom considers the decision-maker’s risk preference and interactive criteria under high uncertain environment. Thus, the purpose of this paper is to develop a hybrid MCDA approach for solving the robot evaluation and selection problem. In the proposed framework, the interval type-2 fuzzy set is used to express the uncertain evaluation information provided by decision-makers. Next, the distance measure of interval type-2 fuzzy numbers is developed to determine the fuzzy measure of each criterion. Then, the extended prospect theory based on developed Choquet integral is proposed to evaluate and prioritize the robot by considering the decision-maker’s risk preference and interactive criteria. Finally, a case study of robot evaluation and selection in the auto industry is selected to exemplify the application of the proposed framework. After that, comparison and sensitivity studies are conducted to further demonstrate the robustness, effectiveness, and reasonableness of the developed approach.

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A prospect theory-based three-way decision model

Cited by 79 publications

References 64 publications

Information Framing And Locus Of Control Effect On Investors’ Interpretation Of Risk

Information Framing And Locus Of Control Effect On Investors’ Interpretation Of Risk

Tripartite Evolutionary Game Analysis for Rumor Spreading on Weibo Based on MA-PT

An Extended Prospect Theory for Robot Evaluation and Selection considering Risk Preferences and Interactive Criteria

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