Multi-criteria decision making method based on linguistic evaluation and prospect theory
Yongmei Liu · Kongzhi yu juece · 2009
With respect to risk decision making problems,a multi-criteria decision making method based on linguistic evaluation and prospect theory is proposed.This method firstly transforms decision matrix based on linguistic information into decision matrix based on intervals,and a function of difference between intervals is defined.Prospect result matrix is obtained while reference points of criteria are given.Then,the prospect value of criteria for every alternative is calculated through value function and decision weight function,and the prospect value of alternative is acquired by using weighted average method.Finally,all the alternatives are sorted and the optimal one is chosen according to the prospect values.A simple investment example shows the feasibility of the method.