Affiliations: School of Economics, Shandong University of Finance and Economics, Jinan Shandong, China | School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan Shandong, China
Note: [] Corresponding author. Peide Liu, School of Management Science and Engineering, Shandong University of Finance and Economics, Jinan Shandong 250014, China. Tel.: +86 531 88525999; E-mail: peide.liu@gmail.com
Abstract: With respect to the random multi-attribute decision making problems with trapezoidal fuzzy probability and unknown weight, a multi-attribute decision making method based on prospect theory is proposed. To begin with, the definition of trapezoidal fuzzy probability is given, and the selection principles for decision-making reference point in prospect theory are discussed. Further, the prospect value function and probability weight function of the trapezoidal fuzzy number based on the decision-making reference point of each attribute are constructed. Then, the prospect value of attribute for every alternative is calculated through prospect value function and probability weight function of the trapezoidal fuzzy number, and attribute weights are calculated by the variation coefficient method, and all the alternatives are ranked by the weighted prospect values and TOPSIS method, respectively. Finally, an illustrate example is given to show the decision-making steps, and the results are shown the feasibility of the methods.
Keywords: Prospect theory, trapezoidal fuzzy probability, random decision-making, multi-attribute decision-making
