Three-way group decisions based on prospect theory

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Abstract

The three-way decision method is a new developing uncertain decision theory. The method divides a set of decision alternatives into three regions, called the acceptance, rejection and uncertainty regions constructed from a pair of thresholds. However, seldom researches about three-way decisions take psychological attitudes and preferences of the decision makers into consideration. In this paper, we propose a novel three-way group decision method, which considers the psychological attitudes from the decision maker. Firstly, we provide the concept of three-way group decisions. The three-way approximation is constructed by many decision makers with respect to a single critical value. The objects are still divided into acceptance, rejection and uncertainty regions, respectively. Then, for the proper region (uncertain region, in general), we propose a decision method, which considers the psychological preferences through fusing prospect theory into three-way group decision methods. The alternatives in the proper region are ranked in accordance with their weighted prospect values. Finally, the optimal choices are made. The decision steps are presented in detail, and the practicality of the proposed methods is illustrated through an example.

Keywords

three-way decisions (3WD) group decision making (GDM) prospect theory (PT) 

Notes

Acknowledgements

The authors would like to thank the anonymous reviewer for the insightful and constructive comments and suggestions that have led to an improved version of this paper. This work was supported by the National Natural Science Foundation of China (NSFC) (71171048 and 71371049), the Research Fund for the Pro Doctoral gram of Higher Education of China (20120092110038), the Fundamental Research Funds for the Central Universities (WUT2017VI010), Jiangsu Provincial Graduate Research Innovation Plan (KYLX15_0190) and the Scientific Research Foundation of Graduate School of Southeast University (YBJJ1567).

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Copyright information

© The Operational Research Society 2017

Authors and Affiliations

  1. 1.School of Economics and ManagementSoutheast UniversityNanjingChina
  2. 2.School of Economics and ManagementAnhui Normal UniversityWuhuChina
  3. 3.School of ManagementWuhan University of TechnologyWuhanChina

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