IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitdm/v15y2016i03ns0219622016500152.html
   My bibliography  Save this article

Novel Multi-criteria Decision-making Approaches Based on Hesitant Fuzzy Sets and Prospect Theory

Author

Listed:
  • Juan-Juan Peng

    (School of Economics and Management, Hubei University of Automotive Technology, Shiyan 442002, China†School of Business, Central South University, Changsha, 410083, China)

  • Jian-Qiang Wang

    (#x2020;School of Business, Central South University, Changsha, 410083, China)

  • Xiao-Hui Wu

    (School of Economics and Management, Hubei University of Automotive Technology, Shiyan 442002, China†School of Business, Central South University, Changsha, 410083, China)

Abstract

Hesitant fuzzy sets (HFSs), an extension of fuzzy sets, are considered to be useful in solving decision making problems where decision makers are unable to choose between several values when expressing their preferences. The purpose of this paper is to develop two hesitant fuzzy multi-criteria decision making (MCDM) methods based on prospect theory (PT). First, the novel component-wise ordering method for two hesitant fuzzy numbers (HFNs) is defined; however, this method does not consider the length of the two HFNs. Second, by utilizing the directed Hausdorff distance between two imprecise point sets, the generalized hesitant Hausdorff distance is developed, which overcomes the shortcomings of the existing distance measures. Third, based on the proposed comparison method and distance, as well as PT, the extended TODIM and Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE) approaches are developed in order to solve MCDM problems with hesitant fuzzy information. Finally, a practical example is provided to illustrate the pragmatism and effectiveness of the proposed approaches. Sensitivity and comparison analyses are also conducted using the same example. The findings indicate that the proposed methods do not require complicated computation procedures, yet still yield a reasonable and credible solution.

Suggested Citation

  • Juan-Juan Peng & Jian-Qiang Wang & Xiao-Hui Wu, 2016. "Novel Multi-criteria Decision-making Approaches Based on Hesitant Fuzzy Sets and Prospect Theory," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 621-643, May.
    • Handle: RePEc:wsi:ijitdm:v:15:y:2016:i:03:n:s0219622016500152
    DOI: 10.1142/S0219622016500152
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219622016500152
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219622016500152?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ting-Yu Chen, 2011. "Signed Distanced-Based Topsis Method For Multiple Criteria Decision Analysis Based On Generalized Interval-Valued Fuzzy Numbers," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 10(06), pages 1131-1159.
    2. Albadvi, Amir & Chaharsooghi, S. Kamal & Esfahanipour, Akbar, 2007. "Decision making in stock trading: An application of PROMETHEE," European Journal of Operational Research, Elsevier, vol. 177(2), pages 673-683, March.
    3. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    4. JosÉ Figueira & Salvatore Greco & Matthias Ehrogott, 2005. "Multiple Criteria Decision Analysis: State of the Art Surveys," International Series in Operations Research and Management Science, Springer, number 978-0-387-23081-8, December.
    5. Gang Kou & Yanqun Lu & Yi Peng & Yong Shi, 2012. "Evaluation Of Classification Algorithms Using Mcdm And Rank Correlation," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 197-225.
    6. Jian-qiang Wang & Zhi-qiu Han & Hong-yu Zhang, 2014. "Multi-criteria Group Decision-Making Method Based on Intuitionistic Interval Fuzzy Information," Group Decision and Negotiation, Springer, vol. 23(4), pages 715-733, July.
    7. Goumas, M. & Lygerou, V., 2000. "An extension of the PROMETHEE method for decision making in fuzzy environment: Ranking of alternative energy exploitation projects," European Journal of Operational Research, Elsevier, vol. 123(3), pages 606-613, June.
    8. Kou, Gang & Ergu, Daji & Shang, Jennifer, 2014. "Enhancing data consistency in decision matrix: Adapting Hadamard model to mitigate judgment contradiction," European Journal of Operational Research, Elsevier, vol. 236(1), pages 261-271.
    9. Kou, Gang & Lin, Changsheng, 2014. "A cosine maximization method for the priority vector derivation in AHP," European Journal of Operational Research, Elsevier, vol. 235(1), pages 225-232.
    10. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    11. Dhami, Sanjit & al-Nowaihi, Ali, 2007. "Why do people pay taxes? Prospect theory versus expected utility theory," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 171-192, September.
    12. J. P. Brans & Ph. Vincke, 1985. "Note---A Preference Ranking Organisation Method," Management Science, INFORMS, vol. 31(6), pages 647-656, June.
    13. Bertrand Mareschal & Jean Pierre Brans, 1992. "PROMETHEE V: MCDM problems with segmentation constraints," ULB Institutional Repository 2013/9341, ULB -- Universite Libre de Bruxelles.
    14. Zhi-Xin Su, 2011. "A Hybrid Fuzzy Approach To Fuzzy Multi-Attribute Group Decision-Making," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 10(04), pages 695-711.
    15. Nicholas Barberis & Ming Huang & Tano Santos, 2001. "Prospect Theory and Asset Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 1-53.
    16. Junhua Hu & Xiaolong Zhang & Xiaohong Chen & Yongmei Liu, 2016. "Hesitant fuzzy information measures and their applications in multi-criteria decision making," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(1), pages 62-76, January.
    17. Deniz Okul & Cevriye Gencer & Emel Kizilkaya Aydogan, 2014. "A Method Based on SMAA-Topsis for Stochastic Multi-Criteria Decision Making and a Real-World Application," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 13(05), pages 957-978.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Song-Man Wu & Hu-Chen Liu & Li-En Wang, 2017. "Hesitant fuzzy integrated MCDM approach for quality function deployment: a case study in electric vehicle," International Journal of Production Research, Taylor & Francis Journals, vol. 55(15), pages 4436-4449, August.
    2. Xiaodi Liu & Zengwen Wang & Antoinette Hetzler, 2017. "HFMADM method based on nondimensionalization and its application in the evaluation of inclusive growth," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(4), pages 726-744, July.
    3. Mustafa Batuhan Ayhan, 2018. "A New Decision Making Approach for Supplier Selection: Hesitant Fuzzy Axiomatic Design," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1085-1117, July.
    4. Aiiad Albeshri & Vijey Thayananthan, 2018. "Analytical Techniques for Decision Making on Information Security for Big Data Breaches," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(02), pages 527-545, March.
    5. Tosarkani, Babak Mohamadpour & Amin, Saman Hassanzadeh & Zolfagharinia, Hossein, 2020. "A scenario-based robust possibilistic model for a multi-objective electronic reverse logistics network," International Journal of Production Economics, Elsevier, vol. 224(C).
    6. Ying Luo & Xudong Chen & Liming Yao, 2021. "Flood disaster resilience evaluation of Chinese regions: integrating the hesitant fuzzy linguistic term sets with prospect theory," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 105(1), pages 667-690, January.
    7. Jing Wang & Jian-Qiang Wang & Hong-Yu Zhang & Xiao-Hong Chen, 2017. "Distance-Based Multi-Criteria Group Decision-Making Approaches with Multi-Hesitant Fuzzy Linguistic Information," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1069-1099, July.
    8. Juan-juan Peng & Jian-qiang Wang & Wu-E Yang, 2017. "A multi-valued neutrosophic qualitative flexible approach based on likelihood for multi-criteria decision-making problems," International Journal of Systems Science, Taylor & Francis Journals, vol. 48(2), pages 425-435, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shouzhen Zeng & Jianping Chen & Xingsen Li, 2016. "A Hybrid Method for Pythagorean Fuzzy Multiple-Criteria Decision Making," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 403-422, March.
    2. Jih-Jeng Huang & Masahiro Inuiguchi, 2015. "Diminishing Utility Decision Model for Weighting Criteria," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1263-1284, November.
    3. Behzadian, Majid & Kazemzadeh, R.B. & Albadvi, A. & Aghdasi, M., 2010. "PROMETHEE: A comprehensive literature review on methodologies and applications," European Journal of Operational Research, Elsevier, vol. 200(1), pages 198-215, January.
    4. Marjan S. Jalali & Fernando A. F. Ferreira & João J. M. Ferreira & Ieva Meidutė-Kavaliauskienė, 2016. "Integrating Metacognitive and Psychometric Decision-Making Approaches for Bank Customer Loyalty Measurement," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 815-837, July.
    5. Emre Çalişkan & Erdem Aksakal & Saliha Çetinyokuş & Tahsin Çetinyokuş, 2019. "Hybrid Use of Likert Scale-Based AHP and PROMETHEE Methods for Hazard Analysis and Consequence Modeling (HACM) Software Selection," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(05), pages 1689-1715, September.
    6. Rablen, Matthew D., 2010. "Performance targets, effort and risk-taking," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 687-697, August.
    7. Chitresh Kumar & Girish Balasubramanian, 2023. "Comparative Analysis of Pitch Ratings in All Formats of Cricket," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(3), pages 307-324, August.
    8. Peide Liu & Lili Zhang & Xi Liu & Peng Wang, 2016. "Multi-Valued Neutrosophic Number Bonferroni Mean Operators with their Applications in Multiple Attribute Group Decision Making," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 1181-1210, September.
    9. Tsuen-Ho Hsu & Ling-Zhong Lin, 2014. "Using Fuzzy Preference Method for Group Package Tour Based on the Risk Perception," Group Decision and Negotiation, Springer, vol. 23(2), pages 299-323, March.
    10. Giovanni Improta & Giuseppe Converso & Teresa Murino & Mosè Gallo & Antonietta Perrone & Maria Romano, 2019. "Analytic Hierarchy Process (AHP) in Dynamic Configuration as a Tool for Health Technology Assessment (HTA): The Case of Biosensing Optoelectronics in Oncology," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(05), pages 1533-1550, September.
    11. Ziho Kang & Thomas Morin, 2016. "Multi-Attribute Decision Making in a Bidding Game with Imperfect Information and Uncertainty," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 63-81, January.
    12. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    13. Moshe Levy & Haim Levy, 2013. "Prospect Theory: Much Ado About Nothing?," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 7, pages 129-144, World Scientific Publishing Co. Pte. Ltd..
    14. Christoph Bühren & Thorben C. Kundt, 2013. "Worker or Shirker – Who Evades More Taxes? A Real Effort Experiment," MAGKS Papers on Economics 201326, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    15. Freudenreich, Hanna & Musshoff, Oliver & Wiercinski, Ben, 2017. "The Relationship between Farmers' Shock Experiences and their Uncertainty Preferences - Experimental Evidence from Mexico," GlobalFood Discussion Papers 256212, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    16. De Giorgi, Enrico & Hens, Thorsten & Rieger, Marc Oliver, 2010. "Financial market equilibria with cumulative prospect theory," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 633-651, September.
    17. Chen Lian & Yueran Ma & Carmen Wang, 2019. "Low Interest Rates and Risk-Taking: Evidence from Individual Investment Decisions," The Review of Financial Studies, Society for Financial Studies, vol. 32(6), pages 2107-2148.
    18. Viral Gupta & P. K. Kapur & Deepak Kumar, 2019. "Prioritizing and Optimizing Disaster Recovery Solution using Analytic Network Process and Multi Attribute Utility Theory," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 171-207, January.
    19. Haim Levy & Enrico De Giorgi & Thorsten Hens, "undated". "Prospect Theory and the CAPM: A contradiction or coexistence?," IEW - Working Papers 157, Institute for Empirical Research in Economics - University of Zurich.
    20. Amit Kothiyal & Vitalie Spinu & Peter Wakker, 2014. "An experimental test of prospect theory for predicting choice under ambiguity," Journal of Risk and Uncertainty, Springer, vol. 48(1), pages 1-17, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitdm:v:15:y:2016:i:03:n:s0219622016500152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitdm/ijitdm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.