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author:

Pan, Xiao-Hong (Pan, Xiao-Hong.) [1] | He, Shi-Fan (He, Shi-Fan.) [2] | Wang, Ying-Ming (Wang, Ying-Ming.) [3]

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Abstract:

In decision-making analysis, the description on decision makers' risk attitude under uncertainty is a focus topic. This paper presents a novel decision analysis framework that considers uncertainty and risk using the cumulative prospect theory. The proposed approach describes uncertain preference information using interval-valued fuzzy sets, maintaining this representation without converting intervals into crisp numbers throughout the entire process. To quantify the distance between interval-valued fuzzy sets, we introduce a comprehensive interval-valued distance model that accounts for multiple situations determined based on the relative positions between intervals. Afterwards, some related theorems about the proposed interval-valued distance model are explored mathematically. Then, with the aid of different reference points and interval-valued distance model, the overall interval-valued prospect value of each alternative is investigated. Finally, an Enhanced Minimax Regret-based (EMR) approach is developed to compare and rank the obtained overall interval-valued prospect values. An illustrative example, accompanied by detailed discussions, is provided to demonstrate the flexibility and superiority of the proposed decision analysis framework. © 2024 Elsevier B.V.

Keyword:

Decision making Decision theory Fuzzy sets Risk assessment Uncertainty analysis

Community:

  • [ 1 ] [Pan, Xiao-Hong]School of Business, Qingdao University, Shandong, 266071, China
  • [ 2 ] [He, Shi-Fan]School of Business, Qingdao University, Shandong, 266071, China
  • [ 3 ] [He, Shi-Fan]Decision Sciences Institute, Fuzhou University, Fujian, 350108, China
  • [ 4 ] [Wang, Ying-Ming]Decision Sciences Institute, Fuzhou University, Fujian, 350108, China

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Source :

Fuzzy Sets and Systems

ISSN: 0165-0114

Year: 2024

Volume: 480

3 . 2 0 0

JCR@2023

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ESI Highly Cited Papers on the List: 0 Unfold All

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30 Days PV: 0

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