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Generalized Ordered Weighted Reference Dependent Utility Aggregation Operators and Their Applications to Group Decision-Making

Author

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  • Jianwei Gao

    (North China Electric Power University)

  • Huihui Liu

    (North China Electric Power University)

Abstract

To quantify the influence of decision makers’ psychological factors on the group decision process, this paper develops a new class of aggregation operators based on reference-dependent utility functions (RUs) in multi-attribute group decision analysis. RUs include S-shaped RU and non-S-shaped RU. Each RU affords a framework where the psychological factors explicitly enter the decision problem via the basic utility function, reference point and loss aversion coefficient. Under the general framework, we derive a generalized ordered weighted S-shaped RU proportional averaging (GOSP) operator and a generalized ordered weighted non-S-shaped RU proportional averaging (GONSP) operator, respectively. The GOSP operator implies the risk attitude of the DM for relative losses is risk-seeking, while GONSP operator indicates the risk attitude in this case is risk-averse. As a special case, GONSP operator can degenerate into GOWPA operator which means that the attitude of the DM is risk-neutral. Each operator satisfies the desirable properties of general operator, i.e., monotonicity, commutativity, idempotency and boundedness. Furthermore, we consider hyperbolic absolute risk aversion (HARA) function as the basic utility function, and define an S-shaped HARA and a non-S-shaped HARA utility functions. Based on the two new RUs, we propose GOSP–HARA operator and GONSP–HARA operator. Every operator covers many existing aggregation operators. To ascertain weights of such operators, the paper builds an attribute-deviation weight model and a DMs-deviation weight model. Based on these RU operators and weight models, an approach is addressed for solving multiple attribute group decision-making problem. At last, an example is provided to show the feasible of our approach.

Suggested Citation

  • Jianwei Gao & Huihui Liu, 2017. "Generalized Ordered Weighted Reference Dependent Utility Aggregation Operators and Their Applications to Group Decision-Making," Group Decision and Negotiation, Springer, vol. 26(6), pages 1173-1207, November.
    • Handle: RePEc:spr:grdene:v:26:y:2017:i:6:d:10.1007_s10726-017-9535-9
    DOI: 10.1007/s10726-017-9535-9
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    Cited by:

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