Fuzzy Multiple Criteria Decision Making Method Based on Prospect Theory

Abstract

With regard to uncertain multi-criteria decision-making problems, in which the criteria values of alternatives are in the form of trapezoidal fuzzy numbers and the criteria weights are completely known, a prospect value function of trapezoidal fuzzy numbers based on risk attitudes of decision makers is defined, and the preference function in PROMETHEE method is replaced by the possibility degree of prospect value function of trapezoidal fuzzy numbers. Then a new preference function with risk attitudes of decision maker and an improved PROMETHEE II method based on prospect theory are proposed. The new preference function takes into consideration that the decision maker has preference on alternatives which not always varies with criteria values linearly or stepwise but varies with his or her subjective feelings in the real decision-making problems, and the method extends the form of preference function and better reflects the decision makerpsilas preference. Finally, an example is given to show the feasibility and availability of the method proposed above.