An Extended Prospect Theory for Robot Evaluation and Selection considering Risk Preferences and Interactive Criteria

Abstract

The evaluation and selection process can be regarded as a complex multiple criteria decision analysis (MCDA) problem which involves various interaction relationships among criteria under high uncertain environment. In addition, the decision-makers are always bounded rational in the risk decision-making process. However, the current robot evaluation and selection approach seldom considers the decision-maker’s risk preference and interactive criteria under high uncertain environment. Thus, the purpose of this paper is to develop a hybrid MCDA approach for solving the robot evaluation and selection problem. In the proposed framework, the interval type-2 fuzzy set is used to express the uncertain evaluation information provided by decision-makers. Next, the distance measure of interval type-2 fuzzy numbers is developed to determine the fuzzy measure of each criterion. Then, the extended prospect theory based on developed Choquet integral is proposed to evaluate and prioritize the robot by considering the decision-maker’s risk preference and interactive criteria. Finally, a case study of robot evaluation and selection in the auto industry is selected to exemplify the application of the proposed framework. After that, comparison and sensitivity studies are conducted to further demonstrate the robustness, effectiveness, and reasonableness of the developed approach.

Supply chain sustainability risk decision support model using integrated Preference Selection Index (PSI) method and prospect theory

“…Now let Wij represents the score of value function of every risk element i for risk reprioritization criteria j . Considering capability to articulate decision-maker risk behavior, prospect theory has been applied in various areas as reported by Zhang and Cheng (2021). When linked to the risk reprioritization decision-making process, recently scientific works reporting the application of the prospect theory as a tool for risk priority ranking is given in Table 5.…”