A new EDAS method based on prospect theory for Pythagorean fuzzy set and its application in selecting investment projects for highway

Abstract

Purpose

China is a critical factor for constructing an all-round well-off society. Infrastructure construction, especially high-grade highways, in the western area is an essential component of the strategy for large-scale development of west China. It is crucial to evaluate investment projects for high-grade highways and select the best one. Testing investment projects and selecting the best one can be recognized as a multicriteria decision-making (MCDM) problem. In this process, decision-makers (DMs) usually face with uncertain information because of complicated decision environment or their limited knowledge.

Design/methodology/approach

A new Evaluation based on the Distance from Average Solution (EDAS) for PFS based on the DEMATEL is proposed: The authors offer a new score function and prove some properties for the score function. They put forward a novel Decision-making Trial and Evaluation Laboratory (DEMATEL) method for PFS to analyze the relations of criteria and get criteria weights. Considering the bounded rationality of DM, the authors propose a new EDAS method for PFS based on prospect theory. They apply their proposed approach to a western city's actual case in selecting a suitable project for building a high-grade highway.

Findings

By comparison, the authors can observe that our method has some traits: (1) considering bounded rationality of DM; (2) fewer computation; (3) having the ability to obtain the relation of criteria and finding the critical factor in the decision system.

Originality/value

In this paper, the authors propose a new EDAS method for PFS based on the DEMATEL technique. They transform PFS into crisp numbers by their proposed new score function for PFN to make the decision process more convenient. Then, the authors use the DEMATEL method to obtain the relationship between criteria and criteria weights. Furthermore, they propose a new EDAS method for PFS based on DEMATEL to reduce the computational complexity. Finally, they apply our method to a real case and compare our method with two traditional methods.

Citation

Li, P., Liu, J., Wei, C. and Liu, J. (2022), "A new EDAS method based on prospect theory for Pythagorean fuzzy set and its application in selecting investment projects for highway", Kybernetes, Vol. 51 No. 8, pp. 2636-2651. https://doi.org/10.1108/K-01-2021-0066