Stochastic interval-grey number VIKOR method based on prospect theory

2015 ◽  
Vol 5 (1) ◽  
pp. 105-116 ◽  
Author(s):  
Qingsheng LI ◽  
Ni Zhao
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Expected Utility Theory ◽  
Decision Makers ◽  
Vikor Method ◽  
Content Type ◽  
Multi Attribute Decision Making ◽  
Grey Number ◽  
Index Weight ◽  
Attribute Value

Purpose – The purpose of this paper is to deal with interval grey-stochastic multi-attribute decision-making problems. It proposes a VIKOR method based on prospect theory in which probabilities and the attribute value are both grey numbers. Design/methodology/approach – In the prospect theory the results values and probability weight are used while the utility and probability values in the expected utility theory, which the more realistically reflect and describe the decision makers on the optimal process. VIKOR method makes the decision acceptable superiority and decision process stability. At the same time, a new interval grey number entropy is put forward, which is used to calculate the index weight of unknown. Findings – The paper provides a VIKOR method based on prospect theory in which probabilities and the attribute value are both grey numbers. And the validity and feasibility of the method are illustrated by an example. Research limitations/implications – Although VIKOR is much closer to PIS than TOPSIS, at the same time VIKOR method can get the compromise solution with priority, researchers are encouraged to carry on comparative study further. Practical implications – The paper includes interval grey-stochastic multi-attribute decision-making method and implications. The validity and feasibility of the method are illustrated by a case. Originality/value – This paper proposes a VIKOR method based on prospect theory in which probabilities and the attribute value are both interval grey numbers. At the same time, a new interval grey number entropy is put forward, which is used to calculate the index weight of unknown.

Multi-stage group risk decision making with grey numbers based on grey target and prospect theory

2016 ◽  
Vol 6 (1) ◽  
pp. 64-79 ◽  
Author(s):  
Shuli Yan ◽  
Sifeng Liu
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Group Decision ◽  
Expected Utility Theory ◽  
Decision Makers ◽  
Content Type ◽  
Multi Stage ◽  
Zero Reference ◽  
Grey Number ◽  
Risk Decision

Purpose – With respect to multi-stage group risk decision-making problems in which all the attribute values take the form of grey number, and the weights of stages and decision makers are unknown, the purpose of this paper is to propose a new decision-making method based on grey target and prospect theory. Design/methodology/approach – First, the sequencing and distance between two grey numbers are introduced. Then, a linear operator with the features of the “rewarding good and punishing bad” is presented based on the grey target given by decision maker, and the prospect value function of each attribute based on the zero reference point is defined. Next, weight models of stages and decision makers are suggested, which are based on restriction of stage fluctuation, the maximum differences of alternatives and the maximum entropy theory. Furthermore, the information of alternatives is aggregated by WA operator, the alternatives are selected by their prospect values. Findings – The comprehensive cumulative prospect values are finally aggregated by WA operator, alternatives are selected or not are judged by the sign of the comprehensive prospect theory, if the prospect value of alternative is negative, the corresponding alternative misses the group decision makers’ grey target, on the contrary, if the prospect value of alternative is positive, the corresponding alternative is dropped into the group decision makers’ grey target, the alternative with positive prospect value whose value is the maximum is selected. Originality/value – Compared with the traditional decision-making methods using expected utility theory which suppose the decision makers are all completely rational, the proposed method is based on irrational which is more in line with the decision maker’s psychology. And this method considers the decision maker’s psychological expectation values about every attribute, different satisfactory grey target about attributes will directly affect decision-making result.

Dynamic multi-attribute decision-making method with three-parameter interval grey number based on the prospect theory

2018 ◽  
Vol 8 (4) ◽  
pp. 424-435 ◽  
Author(s):  
Ye Li ◽  
Dongxing Zhang
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Value Function ◽  
Reference Points ◽  
Content Type ◽  
Time Points ◽  
Decision Method ◽  
Multi Attribute Decision Making ◽  
Parameter Interval ◽  
Grey Number

Purpose The purpose of this paper is to propose a dynamic multi-attribute decision-making method based on the prospect theory for dealing with the dynamic multi-attribute decision-making problem with three-parameter interval grey number. Design/methodology/approach First, the kernel and comparison rule of three-parameter interval grey numbers are defined, which are the basis of collecting and sorting grey numbers. Next, the prospect value function is determined in view of the decision-making information with different time points as the reference points. Then, an optimal model for solving the attribute weight and time weight is constructed based on the grey entropy principle. Findings The paper provides a dynamic grey interrelation decision method based on the prospect theory with three-parameter interval grey number, and the example analysis shows that the method proposed in this paper has validity and rationality. Research limitations/implications If we have a better understanding of the weights of different reference points, it is possible to receive a more reasonable expression for the comprehensive prospect utility value function. Practical implications The paper provides a grey interrelation decision method based on the prospect theory, which can help the decision maker deal with the dynamic multi-attribute decision-making problems under the uncertain environment. Originality/value The paper proposes the kernel and ranking method of three-parameter interval grey number, and uses different time points as the reference points to define the prospect value function. Furthermore, this paper structures a dynamic grey interrelation decision method with three-parameter interval grey number based on the prospect theory.

Interval grey numbers based multi-attribute decision making method for supplier selection

Kybernetes ◽  
2014 ◽  
Vol 43 (7) ◽  
pp. 1064-1078 ◽  
Author(s):  
Naiming Xie ◽  
Jianghui Xin
Keyword(s):  
Decision Making ◽  
Supplier Selection ◽  
Decision Makers ◽  
Selection Problem ◽  
Content Type ◽  
Numerical Example ◽  
Possibility Degree ◽  
Multi Attribute Decision Making ◽  
Grey Number ◽  
Supplier Selection Problem

Purpose – The purpose of this paper is to study a novel grey possibility degree approach, which is combined with multi-attribute decision making (MADM) and applied MADM model for solving supplier selection problem under uncertainty information. Design/methodology/approach – The supplier selection problem is a typical MADM problem, in which information of a series of indexes should be aggregated. However, it is relatively easy for decision makers to define information in uncertainty, sometimes as a grey number, rather than a precise number. By transforming linguistic scale of rating supplier selection attributes into interval grey numbers, a novel grey MADM method is developed. Steps of proposed model were provided, and a novel grey possibility degree approach was proposed. Finally, a numerical example of supplier selection is utilized to demonstrate the proposed approach. Findings – The results show that the proposed approach could solve the uncertainty decision-making problem. A numerical example of supplier selection is utilized to demonstrate the proposed approach. The results show that the proposed method is useful to aggregate decision makers’ information so as to select the potential supplier. Practical implications – The approach constructed in the paper can be used to solving uncertainty decision-making problems that the certain value of the decision information could not collect while the interval value set could be defined. Obviously it can be utilized for other MADM problem. Originality/value – The paper succeeded in redefining interval grey number, constructing a novel interval grey number based MADM approach and providing the solution of the proposed approach. It is very useful to solving system forecasting problem and it contributed undoubtedly to improve grey decision-making models.

Grey relational decision making model of three-parameter interval grey number based on AHP and DEA

2019 ◽  
Vol 10 (1) ◽  
pp. 25-37
Author(s):  
Bingjun Li ◽  
Xiaoxiao Zhu
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Agriculture Industry ◽  
Parameter Interval ◽  
Grey Number ◽  
Index Weight ◽  
Decision Making Model ◽  
Grey Relational ◽  
Grey Relation

Purpose The purpose of this paper is to put forward the grey relational decision-making model of three-parameter interval grey number based on Analytic Hierarchy Process (AHP) and Data Envelopment Analysis (DEA), based on the previous study of grey relational decision-making model, and it considers the advantages of the decision-making schemes and the subjective preferences of decision makers. Design/methodology/approach First of all, through AHP, the preference of each index is analyzed and the index weight is determined. Second, the DEA model is adopted to obtain the index weight from the perspective of the most beneficial to each scheme and objectively reflect the advantages of different schemes. Then, assign the comprehensive weights to each index of the grey relational decision-making model of three-parameter interval grey number, and calculate the grey relation degree of each scheme to rank the schemes. Findings The effectiveness of the model is proved by an example of carrier aircraft selection. Practical implications The applicability of this model is analyzed by taking carrier aircraft selection as an example. In fact, this model can also be widely used in agriculture, industry, economy, society and other fields. Originality/value In this paper, the combination of AHP and DEA is used to determine the index weight. Based on which, the grey relation degree under the three-parameter interval grey number is calculated. It intended the application space of the grey relational decision-making model.

Multi-attribute grey target decision method with three-parameter interval grey number

2016 ◽  
Vol 6 (2) ◽  
pp. 270-280 ◽  
Author(s):  
Ye Li ◽  
Shanli Zhu ◽  
San-dang Guo
Keyword(s):  
Decision Making ◽  
Distance Measure ◽  
Ranking Method ◽  
Content Type ◽  
Uncertain Environment ◽  
Decision Method ◽  
Multi Attribute Decision Making ◽  
Parameter Interval ◽  
Grey Number ◽  
Bull's Eye

Purpose – The purpose of this paper is to propose the grey target decision method based on three-parameter interval grey number for dealing with multi-attribute decision-making problems under uncertain environment. Design/methodology/approach – First, the kernel and ranking method of three-parameter interval grey number are defined, which is the basis of determining the positive and negative bull’s-eye. Next, a new distance measure of three-parameter interval grey number is defined in view of the importance of the “center of gravity” point. Furthermore, a new comprehensive bull’s-eye distance is proposed based on the kernel which integrates the distance between different attributes to the positive and negative bull’s-eye. Then attribute weights are obtained by comprehensive bull’s-eye distance minimum and grey entropy maximization. Findings – The paper provides a grey target decision method based on three-parameter interval grey number and example analysis shows that the method proposed in this paper is more reasonable and effective. Research limitations/implications – If we have a better understanding of the distribution characteristics of three-parameter interval grey number, it is possible to have a more reasonable measure of the distance of three-parameter interval grey number. Practical implications – The paper provides a grey target decision method, which can help decision maker deal with multi-attribute decision-making problems under uncertain environment. Originality/value – This paper proposed the kernel and ranking method of three-parameter interval grey number, and defined a new distance measure of three-parameter interval grey number and proposed a new comprehensive bull’s-eye distance, Furthermore, this paper structured a grey target decision method based on three-parameter interval grey number.

Grey risky multi-attribute decision-making method based on regret theory and EDAS

2019 ◽  
Vol 9 (1) ◽  
pp. 101-113 ◽  
Author(s):  
Lili Qian ◽  
Sifeng Liu ◽  
Zhigeng Fang
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Decision Makers ◽  
Regret Theory ◽  
Ranking Problem ◽  
Content Type ◽  
Multi Attribute Decision Making ◽  
Method Of Evaluation ◽  
Regret Aversion ◽  
First Time

Purpose The purpose of this paper is to advance a new grey risky multi-attribute decision-making (RMADM) method from the perspective of regret aversion, which is based on the general grey numbers (GGNs) taking the form of kernel and degree of greyness. Design/methodology/approach First, the normalised grey decision-making matrix is obtained on the basis of kernel and greyness degree of GGNs. Then the regret theory is integrated into the decision-making process by constructing the grey perceived utility function based on GGNs. Finally, the method of evaluation based on distance from average solution (EDAS) is applied to handle with the ranking problem because of its efficiency, stability as well as simplicity. Findings GGNs have more powerful capacity in expressing uncertainty than interval grey numbers, so the method can solve a larger number of RMADM problems in uncertain and imprecise environments. Meanwhile, the method fully considers the psychological behaviour of the decision makers, which is more applicable to the real world. It is the supplement and perfection of the existing RMADM methods. Originality/value The RMADM problem, the grey regret-rejoice function and the EDAS method are all introduced for the first time with GGNs in the form of kernel and degree of greyness. At the same time, the EDAS method is also the first time to be used in combination with the grey RMADM method based on the regret theory.

An extension on PROMETHEE based on the typical hesitant fuzzy sets to solve multi-attribute decision-making problem

Kybernetes ◽  
2016 ◽  
Vol 45 (8) ◽  
pp. 1213-1231 ◽  
Author(s):  
Amin Mahmoudi ◽  
Soheil Sadi-Nezhad ◽  
Ahmad Makui ◽  
Mohammad Reza Vakili
Keyword(s):  
Decision Making ◽  
Decision Makers ◽  
Distance Functions ◽  
Fuzzy Information ◽  
Content Type ◽  
Decision Making Problem ◽  
Promethee Method ◽  
Multi Attribute Decision Making ◽  
Fuzzy Linguistic ◽  
Practical Implications

Purpose The purpose of this paper is to extend the PROMETHEE method under typical hesitant fuzzy information for solving multi-attribute decision-making problem in which there is hesitancy among experts. Design/methodology/approach Different aggregation and distance functions were developed to deal with HFS. But it is rational that different operators applying in existing methods can produce different results. Also, it is difficult for decision makers to select suitable operators. To address the drawback, this paper develops the PROMETHEE method as an outranking approach to accommodate hesitant fuzzy information. Since the proposed method is constructed on the basis of the pair-wise comparisons, it is independent of the aggregation and distance functions. Findings To demonstrate the efficiency and accuracy of the proposed method, the authors provide a numerical example and a comparative analysis. The results indicate that outranking-based methods suggest a better ranking than the aggregation- and distance-based methods. Research limitations/implications The proposed approach does not consider the hesitant fuzzy linguistic information decision-making problem. Practical implications The proposed approach can be applied in many group decision-making problems in which there is hesitancy among experts. Originality/value This paper proposes an extension on PROMETHEE method under hesitant fuzzy information, which has not been reported in the existing academic literature.

A multiple-attribute decision-making method based on the mean value of grey number weight optimisation and its application in supply-chain management

2017 ◽  
Vol 7 (2) ◽  
pp. 297-307 ◽  
Author(s):  
Chuanmin Mi ◽  
Lin Xiao ◽  
Sifeng Liu ◽  
Xiaoyan Ruan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Mean Value ◽  
Decision Makers ◽  
Content Type ◽  
Multiple Attribute ◽  
Subjective Preference ◽  
Weight Value ◽  
The Mean ◽  
Grey Number

Purpose With respect to the multiple-attribute decision-making problem with subjective preference for a certain attribute whose weight-value range have been given over other attributes whose weight values are unknown, a method based on the mean value of the grey number is proposed to analyse the decision-making problem. This method is used to choose a supply-chain partner under the condition that the decision makers have a preference for a certain attribute of various alternatives. The paper aims to discuss these issues. Design/methodology/approach First, the middle value of the preferred attribute’s weight-value range is supposed to be its weight value according to the content of the mean value of the grey number. Second, to reflect the decision maker’s subjective preference information, an improved optimisation model that requests the minimum deviation between the actual and expected numerical value of each attribute is constructed to assess the attributes’ weights. Third, the correlated degree and the correlation matrix, which are determined by the weight values of all attributes, are used to rank all the alternatives. Findings This paper provides a method for making a decision when decision makers have a preference for a certain attribute from an array of various alternatives, and the range of the certain attribute’s weight value is given but the weight value of the other attributes is unknown. When applied to supply-chain partner selection, this method proves feasible and effective. Practical implications This method is feasible and effective when applied to supply-chain partner selection, and can be applied to other kinds of decision-making problems. This means it has significant theoretical importance and extensive practical value. Originality/value Based on the mean value of the grey number, an optimisation model is built to determine the importance degree of each attribute, then the correlated degree of each alternative is combined to rank all the alternatives. This method can suit the decision makers’ subjective preference for a certain attribute well.

The hidden power of language

2020 ◽  
Vol 11 (1) ◽  
pp. 187-206
Author(s):  
Philipp Hummel ◽  
Jacob Hörisch
Keyword(s):  
Decision Making ◽  
Value Creation ◽  
Cost Reduction ◽  
Social Consequences ◽  
Decision Makers ◽  
Social Aspects ◽  
Social Aspect ◽  
Content Type ◽  
Current Accounting ◽  
Cost Reductions

Purpose Stakeholder theory research identifies changes in language as one possible mechanism to overcome the deficiencies of current accounting practices with regard to social aspects. This study aims to examine the effects of the terms used for specific accounts on company internal decision-making, drawing on the example of “value creation accounting”. Design/methodology/approach The study uses a survey based-experiment to analyze the effects of terms used for specific accounts on decision-making, with a focus on social aspects (in particular expenditures for staff) in cost reduction and expenditure decisions. Findings The findings indicate that wordings, which more closely relate to value creation than to costs, decrease cost reductions and increase the priority ascribed to the social aspect of reducing staff costs in times of financial shortage. The effects of terms used on cost reductions are stronger among female decision makers. Practical implications The analysis suggests that conventional accounting language best suits organizations that aim at incentivizing decision makers to primarily cut costs. By contrast, if an organization follows an approach that puts importance on social aspects in times of financial shortage and on not doing too sharp cost reductions, value creation-oriented language is the more effective approach. Social implications The study suggests that the specific terminology used for accounts should be chosen more carefully and with awareness for the possible effects on cost reduction decisions as well as on social consequences. Originality/value This study contributes to a better understanding of the relevance of language in accounting. It suggests that the terms used for accounts should be chosen purposefully because of their far-reaching potential consequences for stakeholders as well as for the organization.

The role of agency in project initiation decisions

2014 ◽  
Vol 7 (3) ◽  
pp. 518-535 ◽  
Author(s):  
Mark Mullaly
Keyword(s):  
Decision Making ◽  
Decision Rules ◽  
Personal Characteristics ◽  
Decision Makers ◽  
Organizational Dynamics ◽  
Substantive Theory ◽  
Content Type ◽  
The Subject ◽  
Board Level

Purpose – The purpose of this paper is to explore the role of decision rules and agency in supporting project initiation decisions, and the influences of agency on decision-making effectiveness. Design/methodology/approach – The study this paper is based upon used grounded theory methodology, and sought to understand the influences of individual decision makers on project initiation decisions within organizations. Data collection involved 28 participants who were involved in project initiation decisions within their organizations, who discussed the process of project initiation in their organization and their role within that process. Findings – The study demonstrates that the overall effectiveness of project initiation decisions is a product of agency, process effectiveness or rule effectiveness. The employment of agency can have a direct influence on decision-making effectiveness, it can compensate for organizational inadequacies of a process or political nature, and it can be constrained in the evidence of formal and effective organizational practices. Research limitations/implications – While agency was recognized by all participants, there are clearly circumstances where actors perceive the ability to exercise agency to be externally constrained. The study is exploratory, contributing to the development of substantive theory. Theory testing as well as a more in-depth investigation of the underlying drivers of agency would be valuable. Practical implications – The study provides executives and individuals supporting the initiation of projects with insights on how to effectively influence the effectiveness of project initiation decisions, and the degree to which personal characteristics influence organizational dynamics. Originality/value – Most discussions of agency has been framed the subject as an executive- or board-level phenomenon. The current study demonstrates that agency is in fact being perceived and operationalized at all levels. Those demonstrating agency in the majority of instances in this study do so in exercising stewardship behaviours. This has important implications for how agency is perceived by executives, and by how agency is exercised by actors at all levels of the organization.

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