Bilateral Matching Decision-Making Method Considering Regret Avoidance in Second-Hand Transactions

Abstract

Effective methods of bilateral matching decision-making could make the second-hand transaction market and platforms more dynamic and healthier for development. However, the loss of description about the characteristics of sellers and buyers and the weight information of their inner preference can affect the matching result. By developing a method for a second-hand transaction, this paper proposes a novel approach that considers the matching parties' psychologies, which can improve the matching efficiency. A mathematical model of seller and buyer is performed, and then the price and other evaluation indicators of sellers and buyers are described by five different types. A bilateral matching multi-objective decision-making model is constructed and solved. A real case study of property trade platform is presented to illustrate how the proposed approach could be applied in practice. The results of this research indicate that the proposed approach is a useful tool for matching the sellers and buyers and has substantial practical application.