To read the full version of this content please select one of the options below:

Interval-valued intuitionistic fuzzy stochastic multi-criteria decision-making method based on Prospect theory

Jianwei Gao (School of Economics and management, North China Electric Power University, Beijing, China)
Huihui Liu (School of Economics and management, North China Electric Power University, Beijing, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 12 January 2015

Abstract

Purpose

The purpose of this paper is to provide a new approach to solving the interval-valued intuitionistic fuzzy stochastic multi-criteria decision-making (MCDM) problems.

Design/methodology/approach

To transform the interval-valued intuitionistic fuzzy number (IVIFN) into a computational numerical value, a new precision score (P-score) function is developed based on the degrees of membership, non-membership and hesitation. The prospect decision-making matrix is derived by applying P-score function and Prospect theory. A new criteria weighting model is put forward based on the least square method, the maximizing deviation method and Prospect theory. Consequently, combined criteria weighting model with the prospect decision-making matrix, the integrated prospect value is derived which presents a measurement scale for ranking the order of alternatives.

Findings

As a result, the method of the interval-valued intuitionistic fuzzy stochastic MCDM is suggested. In this method, the new P-score function responses the comprehensive information of the criteria. The prospect decision-making matrix can reflect the risk attitude of the decision maker. The new criteria weighting model can express both the subjective considerations of the decision maker and the objective information meaning.

Research limitations/implications

The research results may lack generalizability for other fuzzy decision making because of the chosen research approach for IVIFN decision making. Therefore, researchers are encouraged to test the proposed propositions further.

Practical implications

The developed approach can be applied in many decision-making fields such as selection of renewable energy alternatives, assessment of flexible manufacturing system alternatives and human resource alternatives performance evaluation, etc. where the evaluation values are IVIFNs.

Originality/value

This paper succeeds in studying the interval-valued intuitionistic fuzzy MCDM based on Prospect theory, which has not been reported in the existing academic literature.

Keywords

Acknowledgements

The authors are very grateful to the editor David Chapman and the anonymous referees for their insightful and constructive comments and suggestions which have helped to improve the paper. This research is supported by the Natural Science Foundation of China under Grant No. 71271083, and the Fundamental Research Funds for the Central Universities under Nos. 12ZX08, 2014ZZD08.

Citation

Gao, J. and Liu, H. (2015), "Interval-valued intuitionistic fuzzy stochastic multi-criteria decision-making method based on Prospect theory", Kybernetes, Vol. 44 No. 1, pp. 25-42. https://doi.org/10.1108/K-02-2014-0027

Publisher

:

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited