The Behavioral TOPSIS Based on Prospect Theory and Regret Theory

Xinwang Liu, Yuyao Yang and Jing Jiang
Additional contact information
Xinwang Liu: School of Economics and Management, Southeast University, Nanjing 210096, Jiangsu, P. R. China
Yuyao Yang: ��Guanghua School of Management, Peking University, Beijing 100871, P. R. China
Jing Jiang: School of Economics and Management, Southeast University, Nanjing 210096, Jiangsu, P. R. China

International Journal of Information Technology & Decision Making (IJITDM), 2023, vol. 22, issue 05, 1591-1615

Abstract: Technique for order preference by similarity to ideal solution (TOPSIS) is a famous technique for solving multicriteria decision-making problems. However, the classical TOPSIS is invalid to distinguish the alternatives when the distances to the PIS and NIS are the same, and the current researchers about TOPSIS seldom consider the psychological characteristics of loss aversion and regret aversion which affect the decision quality in real world. This paper proposes a behavioral TOPSIS with prospect theory and regret theory considering risk attitudes. First, the defect of classical TOPSIS is illustrated as motivation. Next, we introduce a behavioral TOPSIS with prospect theory and show how it overcomes the defect of classical TOPSIS. Then, regret theory is applied to extend behavioral TOPSIS to show the regret attitude. Finally, a numerical example is used to demonstrate the feasibility and comparative analysis is presented to show the novelty and validity of the proposed method.

Keywords: Multicriteria decision-making; behavioral TOPSIS; prospect theory; regret theory (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219622022500778
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijitdm:v:22:y:2023:i:05:n:s0219622022500778

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219622022500778

Access Statistics for this article

International Journal of Information Technology & Decision Making (IJITDM) is currently edited by Yong Shi

More articles in International Journal of Information Technology & Decision Making (IJITDM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().