Robust user equilibrium model based on cumulative prospect theory under distribution-free travel time

The assumption widely used in the user equilibrium model for stochastic network was that the probability distributions of the travel time were known explicitly by travelers. However, this distribution may be unavailable in reality. By relaxing the restrictive assumption, a robust user equilibrium model based on cumulative prospect theory under distribution-free travel time was presented. In the absence of the cumulative distribution function of the travel time, the exact cumulative prospect value(CPV) for each route cannot be obtained. However, the upper and lower bounds on the CPV can be calculated by probability inequalities.Travelers were assumed to choose the routes with the best worst-case CPVs. The proposed model was formulated as a variational inequality problem and solved via a heuristic solution algorithm. A numerical example was also provided to illustrate the application of the proposed model and the efficiency of the solution algorithm.

Traffic assignment problem under tradable credit scheme in a bi-modal stochastic transportation network: A cumulative prospect theory approach

The traffic equilibrium assignment problem under tradable credit scheme(TCS) in a bi-modal stochastic transportation network is investigated in this paper. To describe traveler’s risk-taking behaviors under uncertainty, the cumulative prospect theory(CPT) is adopted. Travelers are assumed to choose the paths with the minimum perceived generalized path costs, consisting of time prospect value(PV) and monetary cost. At equilibrium with a given TCS, the endogenous reference points and credit price remain constant, and are consistent with the equilibrium flow pattern and the corresponding travel time distributions of road sub-network. To describe such an equilibrium state, the CPT-based stochastic user equilibrium(SUE) conditions can be formulated under TCS. An equivalent variational inequality(VI) model embedding a parameterized fixed point(FP) model is then established, with its properties analyzed theoretically. A heuristic solution algorithm is developed to solve the model, which contains two-layer iterations. The outer iteration is a bisection-based contraction method to find the equilibrium credit price, and the inner iteration is essentially the method of successive averages(MSA) to determine the corresponding CPT-based SUE network flow pattern. Numerical experiments are provided to validate the model and algorithm.

The Evaluation of Alternative Risk Control Schemes Based on Cumulative Prospect Theory

Based on the analysis of the evaluation problems associated with the risk control scheme for major engineering projects,the evaluation method of the risk control scheme considering the irrational behavior of evaluation members in fuzzy random environment is proposed.Firstly,a maximum entropy model corresponding to any evaluation member is es-tablished by using triangular fuzzy random variables and grey correlation coefficient in order to obtain the weight of each risk factor of the member.Secondly,a nonlinear programming model is established according to the principle of minimiz-ing deviation to estimate the weight of different evaluation members on the evaluation of alternative risk control schemes.Lastly,the cumulative entropy model is used to calculate the weight of risk control schemes.Cumulative prospect theory obtains the comprehensive prospect utility value of each alternative to determine the optimal alternative.

An Improved Group Decision-Making Model for the Investment Options of Small-Scale Photovoltaic Systems Based on Cumulative Prospect Theory and Choquet Integral

With the development of photovoltaic(PV) industry, installing small-scale PV systems which are integrated into the buildings becomes popular. Therefore, it is important to make optimal investment decisions for investors and consumers. This paper proposes an improved group decision-making method which integrates the cumulative prospect theory and Choquet integral for the investment options of small-scale PV systems. From the perspective of sustainability, the alternatives are evaluated by four criteria, including economic benefits, solar energy condition, carbon emissions and social benefits. Since the performances of criteria are given by decision makers as linguistic variables, the proposed method measures the criteria values by intuitionistic trapezoidal fuzzy numbers. Then the alternatives are evaluated and ranked to determine the optimal option. Finally, the proposed method is implemented in a case study to illustrate its feasibility and effectiveness.

Cumulative prospect theory-based user equilibrium model with stochastic perception errors

The cumulative prospect theory(CPT) is applied to study travelers' route choice behavior in a degradable transport network. A cumulative prospect theory-based user equilibrium(CPT-UE) model considering stochastic perception error(SPE) within travelers' route choice decision process is developed. The SPE is conditionally dependent on the actual travel time distribution, which is different from the deterministic perception error used in the traditional logit-based stochastic user equilibrium. The CPT-UE model is formulated as a variational inequality problem and solved by a heuristic solution algorithm. Numerical examples are provided to illustrate the application of the proposed model and efficiency of the solution algorithm. The effects of SPE on the reference point determination, cumulative prospect value estimation, route choice decision and network performance evaluation are investigated.

Multi-Objective Optimization of Urban Bus Network Using Cumulative Prospect Theory

Multi-objective optimization of urban bus network can help improve operation efficiency of the transit system and develop strategies for reducing urban traffic congestion in China. The work used cumulative prospect theory, currently the most influential model for decision under uncertainty,to optimize urban bus network. To achieve the research objective, the work developed the theoretical framework of urban bus network optimization, including optimization principle, optimization objectives and constraints. Furthermore, optimization objectives could comprehensively reflect expectations of passengers and bus companies from the dimension of time, space and value. It is more scientific and reasonable compared with only one stakeholder or dimension alone in the previous studies. In addition,the technique for order preference by similarity to ideal solution(TOPSIS) was used to determine the positive and negative ideal alternative. The correlations between the optimization alternatives and the ideal alternatives were estimated by grey relational analysis simultaneously. The cumulative prospect theory(CPT) was used to determine the best alternative by comparing comprehensive prospect value of every alternative, accurately describing decision-making behavior compared with expected utility theory in actual life. Finally, Case of Xi'an showed that the method can better adjust the bus network,and the optimization solution is more reasonable to meet the actual needs.

The Park-and-Ride Behavior in a Cumulative Prospect Theory-Based Model

As an effective travel demand management means,park-and-ride(P&R)mode is an important part of urban traffic.In a traffic corridor with P&R service,suppose that the travel time on highway is uncertain,a cumulative prospect theory(CPT)-based travel decision-making model is established with two travel modes of driving all the way and(P&R).With this setting,the effect of various factors such as the transit fare rate,the parking fee and the total travel demand on the CPT-based and expected utility theory(EUT)-based equilibrium results are compared.In addition,the sensitivity analysis focus on CPT-related parameters are also performed.The numerical results in our case show that the equilibrium flow on P&R mode is always underestimated in an EUT-based model,especially for a low total travel demand.Also,it is found that reducing the transit fare rate or parking fee for P&R station and raising the parking fee for CBD has the same effect on promoting more commuters transfer to P&R mode,whatever CPT-based or EUT-based model is employed.Furthermore,commuter’s reference dependence characteristic is also observed in a CPT-based model,and it is especially noticeable when the road uncertainty is large.

A Cumulative Prospect Theory Based Counterterrorism Resource Allocation Method under Interval Values

Strategic resource allocation into decision-making model plays a valuable role for the defender in mitigating damage and improving efficiency in military environments.In this paper,we develop a defensive resource allocation model based on cumulative prospect theory (CPT),which considers terrorists' psychological factors of decision-making in reality.More specifically,we extend existing models in the presence of multiple attributes and terrorists' deviations from rationality using a multi-attribute cumulative prospect theory.In addition,interval values are used to cope with uncertainties regarding gain and loss.Comparative studies are also carried out to demonstrate the differences among minmax,Nash equilibrium (NE),and traditional probability risk analysis (PRA) strategies.Results show that the defender's optimal defensive resource allocation will change along with terrorists' behaviors and the proposed model makes more sense compared with other traditional resource allocation strategies.

A prospect theory-based methodfor linguistic decision making under risk

Based on the prospect theory, a novel linguisticdecision method under risk is proposed. First, the alternativesunder each risk state are rated using linguistic terms, and＇ thelinguistic decision matrix is constructed. Secondly, thelinguistic terms are transformed into triangular fuzzy numbers,so that the linguistic evaluations can be changed into numericalforms. Thirdly, with the aid of the prospect theory, theprobability weight functions and the linguistic value functionscan be computed, based on which the prospective values of thealternatives are obtained. Finally, the alternatives are rankedwith respect to the prospective values combined of probabilityweight and linguistic value functions. Thus, the optimalchoice is made. The decision process takes the psychologicalpreferences of the decision maker into consideration. Thepracticality of the proposed method is illustrated through anapplication on stock selection problems.

Evaluation of the Effect of China’s Health Care Reform Based on Prospect Theory

Objective To evaluate the effect of health care reform policy in China comprehensively and provide suggestions for its further implementation.Methods Data on the effect of health care reform were obtained from“China Health Statistics Yearbook”and National Bureau of Statistics of China and the indicators were selected by corrected item total correlation(CITC)and Cronbach’sαreliability coefficient.Then,the selected indicators were calculated through the prospect theory model.Meanwhile,the gray relation analysis method was introduced to enlarge the differences between the advantages and disadvantages to make the comprehensive evaluation result more obvious.Results and Conclusion The implementation of China’s health care reform has a significant impact on China’s medical and health system.However,the effect of the policy will become less with the increase of the total amount.An effective management can ensure that the policy continues to play its role.

Prospect Theory Based Individual Irrationality Modelling and Behavior Inducement in Pandemic Control

Understanding and modeling individuals’behaviors during epidemics is crucial for effective epidemic control.However,existing research ignores the impact of users’irrationality on decision-making in the epidemic.Meanwhile,existing disease control methods often assume users’full compliance with measures like mandatory isolation,which does not align with the actual situation.To address these issues,this paper proposes a prospect theorybased framework to model users’decision-making process in epidemics and analyzes how irrationality affects individuals’behaviors and epidemic dynamics.According to the analysis results,irrationality tends to prompt conservative behaviors when the infection risk is low but encourages risk-seeking behaviors when the risk is high.Then,this paper proposes a behavior inducement algorithm to guide individuals’behaviors and control the spread of disease.Simulations and real user tests validate our analysis,and simulation results show that the proposed behavior inducement algorithm can effectively guide individuals’behavior.

Oderly accumulation theory of shale system petroleum resource and its prospecting significance-A case study of Chang 7 Member of Yanchang Formation in Ordos Basin

1 Introduction Shale formations bear abundant mineral resource and*unconventional petroleum resource,and the unconventional petroleum resource that contain in the shale formation should be integrated and researched.

Theory, Practice and Prospection of Si Fertilizer

This paper summarizes the theory of the chemical and physical properties of Si, soil classification for Si soil test and Si fertilizer types, effect of Si fertilizer on plant and soil etc., and proves that Si fertilizer can increase the P nutrition, yield and quality, resistance to any biotic and abiotic stress ability, reduce the toxici- ty of heavy metals of plants and improve the water fertilizer retention of soil by practice; also points out that the best source for Si fertilizers is natural rich Si ma- terials. At last, it gives the prospection about the application of Si fertilizer in the sustainable and organic agriculture.

An Emergency Decision Making Method Based on Prospect Theory for Different Emergency Situations

Emergency decision making(EDM) is an effective way to deal with emergency situations because of its prominent role in alleviating the losses of properties and lives caused by emergency events. It has drawn increasing attention from both governments and academia, and become an important research topic in recent years. Studies show that decision makers are usually guided by bounded rationality under risk and uncertainty conditions. Their psychological behavior plays an important role in the decision making process, and EDM problems are usually characterized by high risk and uncertainty. Thus, decision makers' psychological behavior has been considered in existing EDM approaches based on prospect theory. An emergency event might evolve into different situations due to its dynamic evolution, which is one of the distinctive features of emergency events. This important issue has been discussed in existing EDM approaches, in which different emergency situations are dealt with by devising different solutions. However, existing EDM approaches do not consider decision makers' psychological behavior together with the different emergency situations and the different solutions. Motivated by such limitation, this study proposed a novel approach based on prospect theory considering emergency situations, which considers not only decision makers' psychological behavior, but also different emergency situations in the EDM process. Two examples and related comparison are provided to illustrate the feasibility and validity of this approach.

EXTENSION OF THE TOPSIS METHOD BASED ON PROSPECT THEORY AND TRAPEZOIDAL INTUITIONISTIC FUZZY NUMBERS FOR GROUP DECISION MAKING

Considering the decision maker＇s risk psychological factors and information ambiguity under uncertainty, a novel TOPSIS based on prospect theory （PT） and trapezoidal intuitionistic fuzzy numbers （YrIFNs） for group decision making is investigated, in which the criteria values and the criteria weights take the form of TrIFNs, and weights of decision makers are unknown. Firstly, distance measures for TrIFNs are used to induce value function under trapezoidal intuitionistic fuzzy environment. Secondly, the concepts of distance measures and trapezoidal intuitionistie fuzzy weighted averaging operator are employed to induce the weights of decision makers and thus the decision makers＇ options can be aggregated. Then the PT-based separation measures and relative closeness coefficient are defined and an algorithm for ranking alternatives under trapezoidal intuitionistic fuzzy environment is proposed. Finally, a numerical example further illustrates the practicality and effectiveness of the proposed TOPSIS method.

FROM HEDGING TO SPECULATION-AN EXPLANATION BASED ON PROSPECT THEORY

This paper studies the impact of the reference point on a hedger＇s decision based upon prospect theory and experimental evidence on how prior outcomes affect risky choice. The authors show that in the futures market, a hedger who does not adjust his reference point timely would increase his positions continually as his accumulated losses increase, and finally become a speculator. Numerical simulation results under the normal distribution also lend support to the results. The model can help explain why the hedging behavior of firms turns into speculative activities and can offer some new insights into hedging behavior.

Prospect Theory Based Hesitant Fuzzy Multi-Criteria Decision Making for Low Sulphur Fuel of Maritime Transportation

The environmental impact of maritime transport has now become a relevant issue in sustainable policy formulation and has attracted increasing interest from academia.For the sustainable development of maritime transport,International Maritime Organization stipulates that the sulfur content of ship emissions will reach 0.5 from 2020.With the approaching of the stipulated implementation date,shipowners need to adopt scientific methods to make decision on low sulfur fuel.In this study,we applied a prospect theory based hesitant fuzzy multi-criteria decision-making model to obtain the optimal decision of low Sulphur marine fuel.For this purpose,the hesitant fuzzy decision matrix is established to collect expert opinions,the maximizing deviation method is adopted to determine criteria weights.According to calculate the Euclidean distance from the reference points,we obtain the comprehensive prospect values of alternatives.Lastly,a case study is carried out to illustrate the significance and effectiveness of the proposed methodology.The innovation of this study is that it is the first-time adopting prospect theory and hesitate fuzzy sets to multi-criteria decision making for low Sulphur marine fuel,which provides an effective decision model for shipping companies under Low Sulphur regulations,and can also be extended to other industries.

Optimization of Group Multiattribute Decision-Making Model in Commercial Space Investment

A group multiattribute decision-making model was proposed by implementing prospect theory,multi-attribute decision-making,group decision-making and entropy methods for the optimization in commercial space investment.First,the decision-making function was decided using prospect theory by the preference of each expert to reach the comprehensive prospect value based on different investment options;second,expert decision weights were reached according to entropy method;third,the expert group decision-making information was congregated according to the group decision-making congregation algorithm to reach the most optimized investment option;finally,an example was given to demonstrate the feasibility and effectiveness of the method.This model com-prehensively takes the advantages of many methods to congregate experts'experiences and avoid the subjective influences,thus providing a scientific decision-making approach for the commercial space investment.

行为经济学Prospect理论的个体决策行为研究

诺贝尔经济学奖得主、行为经济学家Kahneman.D和Tversky.A的Prospect Theory在全面反驳新古典预期效用理论的基础上,提出了基于个体主观感受和有限理性的一般决策模型,为不确定条件下个体的经济决策行为提供了一个全新的表述。文章拟在Prospect Theory经典模型的基础上,尝试加入时间压力限制等因素,分析个体在理性时间限制下的决策行为,进一步探讨Prospect Theory模型的发展和完善。

基于行为经济学Prospect理论的个体决策行为的进一步研究

诺贝尔经济学奖得主行为经济学家Kahneman.D和Tversky.A的Prospect Theory①在全面反驳新古典预期效用理论的基础上,提出了基于个体主观感受和有限理性的一般决策模型,为不确定条件下个体的经济决策行为提供了一个全新的表述。在Prospect Theory的经典模型的基础上加入时间压力限制等因素,可发现个体在理性时间限制下风险偏好在不同的时间压力下会呈现非理性,尤其在短期行为中更是如此,可见古典经济学的偏好和理性假设将不再是决定所有个体决策行为的最终因素,时间压力的个体素质也是影响个体决策行为的最终目标实现的重要因素。