Dynamic multi-attribute decision-making method with three-parameter interval grey number based on the prospect theory. Issue 4 (8th October 2018)

• Record Type: Journal Article
• Authors: Li, Ye; Zhang, Dongxing
• Is Part Of: Grey systems. Volume 8:Issue 4(2018)
• Page Start: 424
• Page End: 435
• Publication Date: 2018-10-08
• Subjects: Dynamic -- Multi-attribute decision making -- Three-parameter interval grey number -- Maximum entropy -- The prospect theory; Cybernetics -- Periodicals; Systems engineering -- Periodicals; 003.5
• DOI: 10.1108/GS-05-2018-0021
• Languages: English
• ISSNs: 2043-9377

Abstract

Abstract : 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.