|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]

A prospect theory-based methodfor linguistic decision making under risk()

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

2017 3
Research Field:
Economy and Management
Publishing date:


A prospect theory-based methodfor linguistic decision making under risk
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
decision making under risk linguistic evaluation prospect theory stock selection
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.


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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