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2015 | OriginalPaper | Buchkapitel

Multi-attribute Decision Making Under Risk Based on Third-Generation Prospect Theory

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Abstract

A method of multi-attribute decision making under risk (MADMUR) based on third-generation prospect theory (PT3) is presented to solve the decision making problems by allowing reference points of each attribute to be uncertain. First, some important properties of PT3 are defined. Second, the adaptation of uncertain reference point is represented specifically. Then, the MADMUR method and its relevant computing steps are illustrated including all required definitions of MADMUR, an psychological inference procedure with relative value function and relative cumulative decision weighting function, and ranking and ordering decision alternatives etc. Finally, an illustrative example is given to show this decision making method in detail.

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Metadaten
Titel
Multi-attribute Decision Making Under Risk Based on Third-Generation Prospect Theory
verfasst von
Yu Xiang
Li Ma
Copyright-Jahr
2015
DOI
https://doi.org/10.1007/978-3-319-23862-3_43