Association Journal of CSIAM
Supervised by Ministry of Education of PRC
Sponsored by Xi'an Jiaotong University
ISSN 1005-3085  CN 61-1269/O1

Chinese Journal of Engineering Mathematics ›› 2025, Vol. 42 ›› Issue (1): 127-138.

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Interval Number Ranking and Its Application Based on Different Risk Preferences and Irrational Behaviors of Decision Makers

LI Huiyun1,  YE Guoju2,  LIU Wei2,  ZHAO Dafang3,  GUO Yating2,  SHI Fangfang2   

  1. 1. Danyang High School of Jiangsu Province, Zhenjiang 212000
    2. School of Mathematics, Hohai University, Nanjing 210098
    3. School of Mathematics and Statistics, Hubei Normal University, Huangshi 435000
  • Received:2022-05-20 Accepted:2022-12-25 Online:2025-02-15 Published:2025-04-15
  • Supported by:
    The National Key Research and Development Program (2018YFC1508100); the Natural Science Foundation of Jiangsu Province (BK20180500); the Key Project of Hubei Provincial Department of Education (D20192501); the Science and Technology Plan of Jiangsu Market Supervision Administration (KJ207559).

Abstract:

Based on the different attitudes of decision makers toward risk and the fact that decisions can be influenced by complex psychological mechanisms such as limited human rationality, this paper proposes two interval number ranking methods for the interval number ranking problem arising from the selection of decision options. First, a two-parameter app-roach is introduced to represent the risk preferences of the decision maker and to measure the concessions made by the decision maker for the goal, thus giving a full order to compare the number of intervals, and the parameters are selected by great entropy to make the ranking method scientific and reasonable. Then the prospect theory is introduced to reflect the influence of irrational psychology on decision making under uncertainty and a second method of ranking interval numbers is given. Finally, the existing interval number ranking methods are compared and analyzed with the method proposed in this paper through the existing cases, and it is verified that the first two-parameter method can contain the results obtained by the two existing methods listed in this paper after changing different parameters, so that the two-parameter method is more widely used; the second prospect theory method takes into account the psychological behavior of people when they face gains and losses, and the decision results are more in line with the reality.

Key words: interval number ranking, risk preferences, irrational behaviors, decision-making, prospect theory

CLC Number: