A multi-attribute decision making approach considering economic psychology

Abstract

The magnitude of the utility of a good depends on the subjective psychological evaluation of the good by the consumer, and the difference in the obtained utility will affect consumer behavior, taking into account that consumers are not completely rational in the actual decision-making process, and that under uncertain conditions, consumers’ perception of loss is much greater than gain. This paper investigates an improved scoring function based on consumer utility and loss aversion, which takes into account the effects of different decision makers’ preferences and loss aversion on the decision outcome. First, the existing score function of intuitionistic fuzzy sets is analyzed in depth, an improved score function is defined, and its properties and special cases are studied in detail. Then, a Multi-Attribute Decision-Making (MADM) method is proposed based on the improved scoring function combined with the intuitionistic fuzzy hybrid average (IFHA) operator. Finally, a real case of new energy-used car transaction decision-making is given, and the proposed method is validated by Spearman’s correlation coefficient, WS ranking similarity coefficient, and RW coefficient to prove its practicality and effectiveness.