Multiple Criteria Decision Making Via Dempster-Shafer Theory and Prospect Theory

Abstract

As the uncertainty of information and the decision makers' psychological behavior becomes to be widely concerned in decision making process, a novel method, i.e., evidential prospect theory framework, is proposed based on Dempster-Shafer theory (D-S theory) and prospect theory to address multiple criteria decision making with uncertainty of information under hesitant fuzzy environment. First, belief structure derived from D-S theory is used to model the uncertainty involving expert's subjective assessment. Then a weighted average method to combine belief structures is used to obtain the final aggregated weighting factor for each alternative. Moreover, the expected prospect value of each alternative is obtained by combining the final aggregated weighting factor for each alternative with value function of prospect theory. Based on these expected prospect values, a ranking order of these alternatives can be determined. Finally an illustrative example is given to illustrate the application of the proposed method.