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Computational Intelligence and Neuroscience
Volume 2015 (2015), Article ID 364512, 11 pages
http://dx.doi.org/10.1155/2015/364512
Research Article

Expected Utility Based Decision Making under -Information and Its Application

1Department of Mathematics, Eastern Mediterranean University, Famagusta, Northern Cyprus, Mersin 10, Turkey
2Department of Computer-Aided Control Systems, Azerbaijan State Oil Academy, 20 Azadlig Avenue, 1010 Baku, Azerbaijan

Received 19 September 2014; Accepted 25 December 2014

Academic Editor: Rahib H. Abiyev

Copyright © 2015 Rashad R. Aliev et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Real-world decision relevant information is often partially reliable. The reasons are partial reliability of the source of information, misperceptions, psychological biases, incompetence, and so forth. -numbers based formalization of information (-information) represents a natural language (NL) based value of a variable of interest in line with the related NL based reliability. What is important is that -information not only is the most general representation of real-world imperfect information but also has the highest descriptive power from human perception point of view as compared to fuzzy number. In this study, we present an approach to decision making under -information based on direct computation over -numbers. This approach utilizes expected utility paradigm and is applied to a benchmark decision problem in the field of economics.