A Method for Interval Multiple Attribute Decision Making with Loss Aversion

This paper proposes a method for solving interval multiple attribute decision-making problems with loss aversion. In this method, the behavioral and cognitive factors of decision makers in reality are considered. Firstly, each alternative is chosen as the reference point of another alternative in the process of pair comparisons, and the gains or losses of consequence for each alternative with respect to each attribute relative to the reference point are calculated according to prospect theory. Then, based on loss aversion, the dominance measurement of one alternative over another alternative and the global measurement of each alternative can be calculated by TODIM method, and the ranking result of the alternatives is obtained on the basis of the global measurement of each alternative. Finally, a numerical example is used to illustrate the feasibility and validity of the proposed method.