Combining prospect theory and fuzzy numbers to multi-criteria decision making

Many multi-criteria decision making (MCDM) methods have been proposed to handle uncertain decision making problems. Most of them are based on fuzzy numbers and they are not able to cope with risk in decision making. In recent years, some MCDM methods based on prospect theory to handle risk MCDM problems have been developed. In this paper, we propose a hybrid approach combining prospect theory and fuzzy numbers to handle risk and uncertainty in MCDM problems. So, it is possible to tackle more challenging MCDM problems. A case study involving oil spill in the sea illustrates the application of the novel method.

► Many problems in decision making are affected by risk and uncertainty.
► A novel method based on prospect theory and fuzzy numbers has been proposed to solve this kind of problem.
► Promising results show the feasibility of the approach.