Decision probability transformation based on prospect theory

Abstract

In the decision-making process, transforming the mass function into the decision probability can remove the uncertainty of knowledge and thus reduce the difficulty of decision making. For this reason, this paper puts forward a novel transformation approach based on the value function of prospect theory. The new approach considers the support degree of the single subset from the perspective of uncertainty interval on the basis of the value function of prospect theory. Then, we can get the allocation ratio according to significance of single subsets, which is used to allocate distribute the mass of multiple subsets. The new approach proposed in this paper satisfies the two properties of probability transformation. Furthermore, the performance of the new approach is evaluated by the corresponding evaluation criteria. In the end, the rationality of the new method is well illustrated by several examples.