Combining prospect theory and fuzzy numbers to multi-criteria decision making

► Many problems in decision making are affected by risk and uncertainty. ► A novel method based on prospect theory and fuzzy numbers has been proposed to solve this kind of problem. ► Promising results show the feasibility of the approach. Many multi-criteria decision making (MCDM) methods have been...

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Bibliographic Details
Published in:	Expert systems with applications Vol. 39; no. 13; pp. 11487 - 11493
Main Authors:	Krohling, Renato A., de Souza, Talles T.M.
Format:	Journal Article
Language:	English
Published:	Elsevier Ltd 01-10-2012
Subjects:	Decision making Expert systems Fuzzy logic Fuzzy systems Handles Multi-criteria decision making (MCDM) Oil spills Prospect theory Risk TODIM Uncertainty Fuzzy logic Risk TODIM Prospect theory Multi-criteria decision making (MCDM)
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Summary:	► Many problems in decision making are affected by risk and uncertainty. ► A novel method based on prospect theory and fuzzy numbers has been proposed to solve this kind of problem. ► Promising results show the feasibility of the approach. Many multi-criteria decision making (MCDM) methods have been proposed to handle uncertain decision making problems. Most of them are based on fuzzy numbers and they are not able to cope with risk in decision making. In recent years, some MCDM methods based on prospect theory to handle risk MCDM problems have been developed. In this paper, we propose a hybrid approach combining prospect theory and fuzzy numbers to handle risk and uncertainty in MCDM problems. So, it is possible to tackle more challenging MCDM problems. A case study involving oil spill in the sea illustrates the application of the novel method.
Bibliography:	ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23
ISSN:	0957-4174 1873-6793
DOI:	10.1016/j.eswa.2012.04.006