Method for risky hybrid multiple attribute decision making based on prospect theory
Xiao Zhang, Fan Zhi-ping · Journal of systems engineering · 2012
A decision analysis method based on prospect theory is proposed to solve the risky hybrid multiple attribute decision making problem considering the decision maker's aspiration information.According to the idea of prospect theory,the decision maker's aspirations concerning attributes are firstly regarded as the reference points.Then,by calculating the gains and losses for the attribute values in the forms of crisp numbers, interval numbers and triangular fuzzy numbers relative to the reference points,the risky gain matrix and risky loss matrix are constructed,respectively.Further,according to prospect theory,the comprehensive prospect value of each alternative is calculated.Based on the obtained comprehensive prospect values,a ranking of the alternatives is determined.Finally,a numerical example is used to illustrate the feasibility of the proposed method.