IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitdm/v12y2013i04ns0219622013500260.html
   My bibliography  Save this article

Multiple Attribute Decision Making With Multiple Formats Of Attribute Aspirations: A Method Based On Prospect Theory

Author

Listed:
  • ZHI-PING FAN

    (Department of Management Science and Engineering, School of Business Administration, Northeastern University, Shenyang, 110819, China)

  • XIAO ZHANG

    (Department of Management Science and Engineering, School of Business Administration, Northeastern University, Shenyang, 110819, China;
    Department of Industrial Engineering, School of Economics & Management, Xi Dian University, Xi'an, 710071, China)

  • YAN-RU ZHAO

    (Department of Management Science and Engineering, School of Business Administration, Northeastern University, Shenyang, 110819, China)

  • FA-DONG CHEN

    (Department of Economics, University of Konstanz, Konstanz, 78457, Germany)

Abstract

In this paper, a method based on prospect theory is proposed to solve the multiple attribute decision making (MADM) problem with three formats of attribute aspirations. According to the idea of prospect theory, reference points concerning attributes are first determined. Then, for the three formats of attribute aspirations, the calculation formulae of alternatives' gains/losses concerning attributes are given. By calculating each alternative's gain/loss, a gain–loss matrix is constructed. Further, using the value function from prospect theory and the simple additive weighting method, the overall prospect value of each alternative is calculated. Based on the obtained overall prospect values, a ranking of alternatives can be determined. Finally, a case study is given to illustrate the use of the proposed method.

Suggested Citation

  • Zhi-Ping Fan & Xiao Zhang & Yan-Ru Zhao & Fa-Dong Chen, 2013. "Multiple Attribute Decision Making With Multiple Formats Of Attribute Aspirations: A Method Based On Prospect Theory," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 711-727.
    • Handle: RePEc:wsi:ijitdm:v:12:y:2013:i:04:n:s0219622013500260
    DOI: 10.1142/S0219622013500260
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219622013500260
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219622013500260?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shuli Liu & Xinwang Liu, 2016. "A Sample Survey Based Linguistic MADM Method with Prospect Theory for Online Shopping Problems," Group Decision and Negotiation, Springer, vol. 25(4), pages 749-774, July.
    2. Aleksandra Król & Jerzy Księżak & Elżbieta Kubińska & Stelios Rozakis, 2018. "Evaluation of Sustainability of Maize Cultivation in Poland. A Prospect Theory—PROMETHEE Approach," Sustainability, MDPI, vol. 10(11), pages 1-19, November.
    3. Xiaonan Ji & Lixia Yu & Jiapei Fu, 2019. "Evaluating Personal Default Risk in P2P Lending Platform: Based on Dual Hesitant Pythagorean Fuzzy TODIM Approach," Mathematics, MDPI, vol. 8(1), pages 1-14, December.
    4. Jian-Wu Bi & Tian-Yu Han & Yanbo Yao & Hui Li, 2022. "Ranking hotels through multi-dimensional hotel information: a method considering travelers’ preferences and expectations," Information Technology & Tourism, Springer, vol. 24(1), pages 127-155, March.
    5. Kubińska, Elżbieta & Adamczyk-Kowalczuk, Magdalena & Andrzejewski, Mariusz & Rozakis, Stelios, 2022. "Incorporating the status quo effect into the decision making process: The case of municipal companies merger," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    6. Song, Yongming & Li, Guangxu & Li, Tie & Li, Yanhong, 2021. "A purchase decision support model considering consumer personalization about aspirations and risk attitudes," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitdm:v:12:y:2013:i:04:n:s0219622013500260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitdm/ijitdm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.