Combining prospect theory and fuzzy numbers to multi-criteria decision making

Krohling, Renato A.; Souza, Talles T. M. de

doi:10.1016/j.eswa.2012.04.006

Cited by 196 publications

(101 citation statements)

References 18 publications

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“…In our proposal, we will use fuzzy TODIM method [16][17][18] based on prospect theory [14] because of its advantage and capability of capturing the experts' psychological behavior under fuzzy environment.…”

Section: Fuzzy Todim Methodsmentioning

confidence: 99%

“…3. To take into account experts' psychological behavior by means of the fuzzy TODIM method [16][17][18] based on prospect theory [14]. In the real world, it is common that experts with different background and knowledge might have different attitudes or opinions over different alternatives concerning different criteria.…”

Section: Introductionmentioning

confidence: 99%

“…To take into account experts' psychological behavior by means of the fuzzy TODIM method [16][17][18] based on prospect theory [14].…”

mentioning

confidence: 99%

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Managing Non-Homogeneous Information and Experts’ Psychological Behavior in Group Emergency Decision Making

et al. 2017

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Abstract:After an emergency event (EE) happens, emergency decision making (EDM) is a common and effective way to deal with the emergency situation, which plays an important role in mitigating its level of harm. In the real world, it is a big challenge for an individual emergency manager (EM) to make a proper and comprehensive decision for coping with an EE. Consequently, many practical EDM problems drive group emergency decision making (GEDM) problems whose main limitations are related to the lack of flexibility in knowledge elicitation, disagreements in the group and the consideration of experts' psychological behavior in the decision process. Hence, this paper proposes a novel GEDM approach that allows more flexibility for preference elicitation under uncertainty, provides a consensus process to avoid disagreements and considers experts' psychological behavior by using the fuzzy TODIM method based on prospect theory. Eventually, a group decision support system (GDSS) is developed to support the whole GEDM process defined in the proposed method demonstrating its novelty, validity and feasibility.

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Section: Fuzzy Todim Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Managing Non-Homogeneous Information and Experts’ Psychological Behavior in Group Emergency Decision Making

et al. 2017

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“…But in many situations, numerical values are inadequate or insufficient to model real-life decision problems and the fuzzy sets and their extensions are more appropriate to model human judgments. Thus, different extensions of the classical TODIM method have been developed for dealing with different types of information such as, fuzzy numbers 16 , intuitionistic fuzzy sets 22 , hesitant fuzzy sets 40 , etc. However, in qualitative contexts, when decision makers hesitate about their evaluations and the use of only one linguistic term is not sufficient to reflect their hesitation, it is necessary to use another type of information representation able to model this type of hesitation, such as HFLTS.…”

Section: Introductionmentioning

confidence: 99%

A Hesitant Fuzzy Linguistic TODIM Method Based on a Score Function

Wei¹,

Ren²,

Rodríguez³

2015

IJCIS

187

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Hesitant fuzzy linguistic term sets (HFLTSs) are very useful for dealing with the situations in which the decision makers hesitate among several linguistic terms to assess an alternative. Some multi-criteria decision-making (MCDM) methods have been developed to deal with HFLTSs. These methods are derived under the assumption that the decision maker is completely rational and do not consider the decision maker's psychological behavior. But some studies about behavioral experiments have shown that the decision maker is bounded rational in decision processes and the behavior of the decision maker plays an important role in decision analysis. In this paper, we extend the classical TODIM (an acronym in Portuguese of interactive and multi-criteria decision-making) method to solve MCDM problems dealing with HFLTSs and considering the decision maker's psychological behavior. A novel score function to compare HFLTSs more effectively is defined. This function is also used in the proposed TODIM method. Finally, a decision-making problem that concerns the evaluation and ranking of several telecommunications service providers is used to illustrate the validity and applicability of the proposed method.

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“…The rationality of prospect theory was widely supported by experimentations. The core of prospect theory is the value function, which shows the risk aversion for gains, and reflects the risk propensity for losses [30]. Prospect theory has been successfully applied the behavioral decision-making model [30][31][32][33][34][35].…”

Section: Introductionmentioning

confidence: 99%

An approach to Atanassov's interval-valued intuitionistic fuzzy multi-attribute decision making based on prospect theory

Meng¹,

Tan²,

Chen³

2015

IJCIS

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Prospect theory is a very effective method to express behavioral decision making under uncertainty. This paper attempts to develop a method to multi-attribute decision making with Atanassov's interval-valued intuitionistic fuzzy information using prospect theory. This method first transforms Atanassov's interval-valued intuitionistic fuzzy variables into the prospect values using the value function in prospect theory. Based on the aspiration levels, Atanassov's intuitionistic fuzzy prospect gain and loss matrices are obtained. Then, using the Atanassov's interval-valued intuitionistic hybrid weight averaging (IVIHWA) operator or the Atanassov's interval-valued intuitionistic hybrid Shapley weight averaging (IVIHSWA) operator, the comprehensive Atanassov's interval-valued intuitionistic fuzzy prospect value of each alternative is calculated. According to the comprehensive Atanassov's interval-valued intuitionistic fuzzy prospect values, a ranking method of alternatives is presented. Finally, two illustrative examples are selected to show the feasibility and availability of the proposed method.

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Combining prospect theory and fuzzy numbers to multi-criteria decision making

Cited by 196 publications

References 18 publications

Managing Non-Homogeneous Information and Experts’ Psychological Behavior in Group Emergency Decision Making

Managing Non-Homogeneous Information and Experts’ Psychological Behavior in Group Emergency Decision Making

A Hesitant Fuzzy Linguistic TODIM Method Based on a Score Function

An approach to Atanassov's interval-valued intuitionistic fuzzy multi-attribute decision making based on prospect theory

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