A decision-making framework based on prospect theory with probabilistic linguistic term sets

2020 ◽  
pp. 1-10 ◽  
Author(s):  
Jing Gu ◽  
Ying Zheng ◽  
Xiaoli Tian ◽  
Zeshui Xu
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Linguistic Term ◽  
Probabilistic Linguistic Term Sets ◽  
Decision Making Framework

Transforming and decision-making based on probabilistic linguistic term sets with comparative linguistic expressions and incomplete assessments

2021 ◽  
Vol 40 (1) ◽  
pp. 491-506
Author(s):  
Ao Shen ◽  
Shuling Peng ◽  
Gaofei Liu
Keyword(s):  
Decision Making ◽  
Probability Distribution ◽  
Common Sense ◽  
Linguistic Term ◽  
Probabilistic Linguistic Term Sets ◽  
Probability Information ◽  
Incomplete Assessments

The probabilistic linguistic term sets (PLTSs) are widely used in decision-making, due to its convenience of evaluation, and allowances of probability information. However, there are still some cases where it is not convenient to give an evaluation using the PLTS gramma. Sometimes the evaluators can only give a comparative relationship between alternatives, sometimes evaluators may have difficulty understanding all the alternatives and cannot give a complete assessment. Therefore, we propose a method to transform the comparative linguistic expressions (CLEs) into PLTSs, and the comparison objects of CLEs are alternatives evaluated by PLTSs. And the probability distribution has been adjusted to make the transformation more in line with common sense. Then, a method to correct the deviation is proposed, allowing alternatives to be compared in the case of incomplete assessment. Combining the above two methods, we propose a decision-making method when both CLEs and incomplete assessments coexist. With the study in this paper, the limitations of PLTS-based evaluation and decision-making are reduced and the flexibility of using PLTS is improved.

scholarly journals A DECISION-MAKING FRAMEWORK BASED ON THE PROSPECT THEORY UNDER AN INTUITIONISTIC FUZZY ENVIRONMENT

2018 ◽  
Vol 24 (6) ◽  
pp. 2374-2396 ◽  
Author(s):  
Jing Gu ◽  
Zijian Wang ◽  
Zeshui Xu ◽  
Xuezheng Chen
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Value Function ◽  
Behavior Pattern ◽  
Weighting Function ◽  
Intuitionistic Fuzzy ◽  
Fuzzy Environment ◽  
Decision Making Framework ◽  
Decision Making Behavior ◽  
The Value Function

Uncertainty and ambiguity are frequently involved in the decision-making process in our daily life. This paper develops a generalized decision-making framework based on the prospect theory under an intuitionistic fuzzy environment, by closely integrating the prospect theory and the intuitionistic fuzzy sets into our framework. We demonstrate how to compute the intuitionistic fuzzy prospect values as the reference values for decision-making and elaborate a four-step editing phase and a valuation phase with two key functions: the value function and the weighting function. We then conduct experiments to test our decision- making methodology and the key features of our framework. The experimental results show that the shapes of the value function and the weighting function in our framework are in line with those of prospect theory. The methodology proposed in this paper to elicit prospects that are not only under uncertainty but also under ambiguity. We reveal the decision-making behavior pattern through comparing the parameters. People are less risk averse when making decisions under an intuitionistic fuzzy environment than under uncertainty. People still underestimate the probability of the events in our experiment. Further, the choices of participants in the experiments are consistent with the addition and multiplication principles of our framework.

scholarly journals A NOVEL DECISION-MAKING FRAMEWORK BASED ON PROBABILISTIC LINGUISTIC TERM SET FOR SELECTING SUSTAINABLE SUPPLIER CONSIDERING SOCIAL CREDIT

2021 ◽  
Vol 0 (0) ◽  
pp. 1-34
Author(s):  
Yuanxiang Dong ◽  
Xumei Zheng ◽  
Zeshui Xu ◽  
Weijie Chen ◽  
Hongbo Shi ◽  
...  
Keyword(s):  
Decision Making ◽  
Success Factors ◽  
Chinese Government ◽  
Relative Importance ◽  
Credit System ◽  
Probabilistic Linguistic Term Set ◽  
Social Credit ◽  
Sustainable Supplier Selection ◽  
Linguistic Term ◽  
Decision Making Framework

Sustainable supplier selection (SSS) has become an essential task for decision-makers in competitive environments. We construct a new decision-making framework for SSS. First, classical SSS usually includes fixed factors in environmental, social and economic dimensions. Differently, we adopt new social factors from credit perspective with corporate social credit system being promoted vigorously by the Chinese government. Next, we employ probabilistic linguistic term sets (PLTSs) to collect experts’ judgments about interactive influence between factors. Third, we combine PLTSs with Decision Making Trial and Evaluation Laboratory (DEMATEL) method to identify critical success factors (CSFs) for improving decision-making efficiency. And we also give definition to relative importance degree, standard relative importance degree, deviation of importance degree and influence degree to reflect the interactive influence between factors. To eliminate subjective influence, we combine entropy weighting approach and DEMATEL to compute weights. Fourthly, we redefine dominance degree and apply it into TODIM method for SSS. Finally, the proposed decision-making framework’s effectiveness is verified by using the case study of a new energy vehicle (NEV) company. Based on this, sensitivity analysis and comparison of methods are conducted. The results verify that the decision-making framework is valid and effective for SSS.

scholarly journals Multiple Criteria Group Decision-Making Method with Dempster–Shafer Theory and Probabilistic Linguistic Term Sets

2020 ◽  
Vol 2020 ◽  
pp. 1-19
Author(s):  
Yuanwei Du ◽  
Susu Wang
Keyword(s):  
Decision Making ◽  
Group Decision ◽  
Individual Level ◽  
Preference Theory ◽  
Dempster Shafer Theory ◽  
Linguistic Term ◽  
Probabilistic Linguistic Term Sets ◽  
The Individual ◽  
Shafer Theory ◽  
Interval Valued

The motivation of this study is to propose a novel multiple criteria group decision-making (MCDGM) method based on Dempster–Shafer theory (DST) and probabilistic linguistic term sets (PLTSs) to handle the distinctions between compensatory information at the criterion level and noncompensatory information at the individual level in the process of information fusion. Initially, the information at the individual level is extracted by BPA functions. Then, they are fused with DST considering ignorance and DMs’ reliabilities. Next, the obtained BPA functions are transformed into interval-valued PLTSs with the assistance of intermediate belief and plausibility. Subsequently, the interval-valued PLTSs are converted into standard PLTSs. After normalization, the holistic PLTS is obtained with weighted addition operation and the round function is applied to determine the ultimate evaluation result. Finally, a case simulation study of evaluating the marine ranching ecological security is presented to verify and improve the validity and feasibility of the proposed method and algorithm in practical application. The proposed method and its relevant algorithm are both innovative combination of DST and PLTSs from the perspective of compensatory and noncompensatory features of information, which provides a new angle of view for the development of probabilistic preference theory and is beneficial to apply probabilistic preference theory in practice.

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