A DECISION-MAKING FRAMEWORK BASED ON THE PROSPECT THEORY UNDER AN INTUITIONISTIC FUZZY ENVIRONMENT

doi:10.3846/tede.2018.6981

CORC > 上海财经大学 > 上海财经大学

	A DECISION-MAKING FRAMEWORK BASED ON THE PROSPECT THEORY UNDER AN INTUITIONISTIC FUZZY ENVIRONMENT
	Gu, Jing 1; Wang, Zijian 2; Xu, Zeshui 3; Chen, Xuezheng 4
刊名	TECHNOLOGICAL AND ECONOMIC DEVELOPMENT OF ECONOMY
	2018
卷号	24 期号:6 页码:2374-2396
关键词	decision processes prospect theory intuitionistic fuzzy set intuitionistic fuzzy prospect value
ISSN号	2029-4913
DOI	10.3846/tede.2018.6981
英文摘要	Uncertainty and ambiguity are prevalent in daily decision-making processes. By closely integrating the prospect theory and the intuitionistic fuzzy sets, this paper develops a generalized framework of decision-making. Theoretically, we first use a four-step editing phase and a valuation phase to generate two key functions: the value function and the weighting function. We then demonstrate how to compute the intuitionistic fuzzy prospect values as the reference for decision-making. Empirically, experiments are conducted to examine how well the patterns of subjects' decision-making, under an intuitionistic fuzzy environment, comfort to the framework proposed in this paper. The experiments reveal that the ways that subjects choose to deal with information are consistent with what are implied by the fuzzy logic of our framework in various scenarios. The experimental results show that (i) the shapes of the value function and the weighting function in our framework are in line with those of prospect theory, (ii) people are less risk averse when making decisions under an intuitionistic fuzzy environment than under uncertainty, and (iii) with the presence of ambiguity, people systemically underweight the probabilities of the outcomes with gains as well as those of the outcomes with losses. This paper illustrates that our methodology can elicit prospects not only under uncertainty but also under ambiguity, and the decision-making patterns can be fully captured by parameters in the value function and the weighting function. As our approach generalizes to the case of ambiguity, the prospect theory can therefore be viewed as a special case in our framework.
WOS研究方向	Business & Economics
语种	英语
出版者	VILNIUS GEDIMINAS TECH UNIV
WOS记录号	WOS:000454435600011
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/2806]
专题	上海财经大学
通讯作者	Chen, Xuezheng
作者单位	1.Sichuan Univ, Sch Econ, 29 Wangjiang Rd, Chengdu, Sichuan, Peoples R China; 2.Shanghai Univ Finance & Econ, Sch Stat & Management, 777 Guoding Rd, Shanghai, Peoples R China; 3.Sichuan Univ, Business Sch, 29 Wangjiang Rd, Chengdu, Sichuan, Peoples R China; 4.Jiangxi Univ Finance & Econ, Sch Econ, 169 East Shuanggang Rd, Nanchang, Jiangxi, Peoples R China
推荐引用方式 GB/T 7714	Gu, Jing,Wang, Zijian,Xu, Zeshui,et al. A DECISION-MAKING FRAMEWORK BASED ON THE PROSPECT THEORY UNDER AN INTUITIONISTIC FUZZY ENVIRONMENT[J]. TECHNOLOGICAL AND ECONOMIC DEVELOPMENT OF ECONOMY,2018,24(6):2374-2396.
APA	Gu, Jing,Wang, Zijian,Xu, Zeshui,&Chen, Xuezheng.(2018).A DECISION-MAKING FRAMEWORK BASED ON THE PROSPECT THEORY UNDER AN INTUITIONISTIC FUZZY ENVIRONMENT.TECHNOLOGICAL AND ECONOMIC DEVELOPMENT OF ECONOMY,24(6),2374-2396.
MLA	Gu, Jing,et al."A DECISION-MAKING FRAMEWORK BASED ON THE PROSPECT THEORY UNDER AN INTUITIONISTIC FUZZY ENVIRONMENT".TECHNOLOGICAL AND ECONOMIC DEVELOPMENT OF ECONOMY 24.6(2018):2374-2396.