A fuzzy risk attitude classification based on prospect theory

TitleA fuzzy risk attitude classification based on prospect theory
Publication TypeConference Paper
Year of Publication2012
AuthorsLi, Y, Portmann, E
Conference NameProceedings of the 2012 International Conference on Fuzzy Theory and Its Applications
Date PublishedNovember
PublisherIEEE / Institute of Electrical and Electronics Engineers Incorporated
Conference LocationTaichung, Taiwan
Keywordsfuzzy classification, Parameters, Prospect Theory Application, Risk Attitude

Traditional methods do not actually measure peoples? risk attitude naturally and precisely. Therefore, a fuzzy risk attitude classification method is developed. Since the prospect theory is usually considered as an effective model of decision making, the personalized parameters in prospect theory are firstly fuzzified to distinguish people with different risk attitudes, and then a fuzzy classification database schema is applied to calculate the exact value of risk value attitude and risk be- havior attitude. Finally, by applying a two-hierarchical clas- sification model, the precise value of synthetical risk attitude can be acquired.