|Table of Contents|

[1] Liu Shuli, Liu Xinwang,. A prospect theory-based methodfor linguistic decision making under risk [J]. Journal of Southeast University (English Edition), 2017, 33 (3): 370-376. [doi:10.3969/j.issn.1003-7985.2017.03.018]
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A prospect theory-based methodfor linguistic decision making under risk()
基于前景理论的风险型语言决策方法

Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:
33
Issue:
2017 3
Page:
370-376
Research Field:
Economy and Management
Publishing date:
2017-09-30

Info

Title:
A prospect theory-based methodfor linguistic decision making under risk
基于前景理论的风险型语言决策方法
Author(s):
Liu Shuli1, 2, Liu Xinwang1
1School of Economics and Management, Southeast University, Nanjing 210096, China
2School of Economics and Management, Anhui Normal University, Wuhu 241000, China
刘树利1, 2, 刘新旺1
1东南大学经济管理学院, 南京 210096; 2安徽师范大学经济管理学院, 芜湖 241000
Keywords:
decision making under risk;  linguistic evaluation;  prospect theory;  stock selection
风险型决策;  语言评价;  前景理论;  股票选择
PACS:
C934
DOI:
10.3969/j.issn.1003-7985.2017.03.018
Abstract:
Based on the prospect theory, a novel linguistic decision method under risk is proposed. First, the alternatives under each risk state are rated using linguistic terms, and the linguistic decision matrix is constructed. Secondly, the linguistic terms are transformed into triangular fuzzy numbers, so that the linguistic evaluations can be changed into numerical forms. Thirdly, with the aid of the prospect theory, the probability weight functions and the linguistic value functions can be computed, based on which the prospective values of the alternatives are obtained. Finally, the alternatives are ranked with respect to the prospective values combined of probability weight and linguistic value functions. Thus, the optimal choice is made. The decision process takes the psychological preferences of the decision maker into consideration. The practicality of the proposed method is illustrated through an application on stock selection problems.
基于前景理论方法, 提出了一种语言风险型决策方法.首先, 采用语言术语的形式对每一种风险状态下的各个选项进行评价;并据此构建语言决策矩阵.其次, 将语言术语转化为三角模糊数;并将语言评价信息转化为数值型数据.然后, 根据前景理论的思想, 计算出概率权重函数与语言值函数, 进而得到各选项的加权前景值.最后, 根据加权前景值对各选项进行排序, 并做出最优选择.该决策方法将决策者的心理偏好行为融入到实际决策过程中, 并通过一个股票选择的应用实例验证了该方法的有效性.

References:

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Memo

Memo:
Biographies: Liu Shuli(1980—), male, graduate; Liu Xinwang(corresponding author), male, doctor, professor, xwliu@seu.edu.cn.
Foundation items: The National Natural Science Foundation of China(No.71171048, 71371049), the Scientific Innovation Research of College Graduates in Jiangsu Province(No.KYLX15_0190), the Scientific Research Foundation of Graduate School of Southeast University(No.YBJJ1567).
Citation: Liu Shuli, Liu Xinwang. A prospect theory-based method for linguistic decision making under risk[J].Journal of Southeast University(English Edition), 2017, 33(3):370-376.DOI:10.3969/j.issn.1003-7985.2017.03.018.
Last Update: 2017-09-20