Solving the discrete multiple criteria problem using linear prospect theory

Solving the discrete multiple criteria problem using linear prospect theory

0.00 Avg rating0 Votes
Article ID: iaor19972020
Country: Netherlands
Volume: 72
Issue: 1
Start Page Number: 146
End Page Number: 154
Publication Date: Jan 1994
Journal: European Journal of Operational Research
Authors:
Keywords: prospect theory
Abstract:

Prospect theory developed by Kahneman and Tversky is a popular model of choice in decision problems under uncertainty. Prospect theory has recently been extended to multiple criteria choice problems. In this paper, an interactive method for solving discrete multiple criteria decision problems, based on prospect theory type value functions, has been developed. Piecewise linear marginal value functions are assumed to approximate the S-shaped value functions of prospect theory. Therefore, the proposed procedure is valid only for convex preferences.

Reviews

Required fields are marked *. Your email address will not be published.