An Interval-Valued Three-Way Decision Model Based on Cumulative Prospect Theory

Abstract

In interval-valued three-way decision, the reflection of decision-makers’ preference under the full consideration of interval-valued characteristics is particularly important. In this paper, we propose an interval-valued three-way decision model based on the cumulative prospect theory. First, by means of the interval distance measurement method, the loss function and the gain function are constructed to reflect the differences of interval radius and expectation simultaneously. Second, combined with the reference point, the prospect value function is utilized to reflect decision-makers’ different risk preferences for gains and losses. Third, the calculation method of cumulative prospect value for taking action is given through the transformation of the prospect value function and cumulative weight function. Then, the new decision rules are deduced based on the principle of maximizing the cumulative prospect value. Finally, in order to verify the effectiveness and feasibility of the algorithm, the prospect value for decision-making and threshold changes are analyzed under different risk attitudes and different radii of the interval-valued decision model. In addition, compared with the interval-valued decision rough set model, our method in this paper has better decision prospects.