Table of Contents Author Guidelines Submit a Manuscript
The Scientific World Journal
Volume 2014, Article ID 703597, 7 pages
http://dx.doi.org/10.1155/2014/703597
Research Article

Grey Situation Group Decision-Making Method Based on Prospect Theory

1Corps Financial Development Research Center, Shihezi University, Wujiaqu 831300, China
2Commerce College, Shihezi University, Wujiaqu 831300, China
3College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China

Received 12 June 2014; Accepted 26 July 2014; Published 12 August 2014

Academic Editor: Young Bae Jun

Copyright © 2014 Na Zhang 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

This paper puts forward a grey situation group decision-making method on the basis of prospect theory, in view of the grey situation group decision-making problems that decisions are often made by multiple decision experts and those experts have risk preferences. The method takes the positive and negative ideal situation distance as reference points, defines positive and negative prospect value function, and introduces decision experts’ risk preference into grey situation decision-making to make the final decision be more in line with decision experts’ psychological behavior. Based on TOPSIS method, this paper determines the weight of each decision expert, sets up comprehensive prospect value matrix for decision experts’ evaluation, and finally determines the optimal situation. At last, this paper verifies the effectiveness and feasibility of the method by means of a specific example.