Title: A new method for fuzzy decision making under risk and uncertainty

Authors: José M. Merigó; Anna M. Gil-Lafuente; Daniel Palacios-Marqués

Addresses: Manchester Business School, University of Manchester, Booth Street West, M15 6PB Manchester, UK ' Department of Business Administration, University of Barcelona, Av. Diagonal 690, 08034 Barcelona, Spain ' Department of Business Organization, Universitat Politècnica de València, Camino Vera s/n, 46022 Valencia, Spain

Abstract: A new decision making model is developed based on the use of a unified approach between the probability, the weighted average and the ordered weighted averaging (OWA) operator in an uncertain environment that can be assessed with fuzzy numbers (FNs). We present the fuzzy probabilistic ordered weighted averaging - weighted averaging (FPOWAWA) operator. It is an aggregation operator that integrates the OWA, the probability and the weighted average in the same formulation. Some of its main properties are studied and a wide range of particular cases such as the fuzzy probabilistic OWA, the fuzzy OWAWA, the fuzzy probabilistic weighted averaging operator and the fuzzy OWA operator. An application of the new approach in a fuzzy group decision making model regarding financial management is also developed.

Keywords: fuzzy decision making; probability; ordered weighted averaging; OWA operator; weighted average; fuzzy numbers; risk management; group decision making; financial management.

DOI: 10.1504/IJBCRM.2014.060042

International Journal of Business Continuity and Risk Management, 2014 Vol.5 No.1, pp.29 - 42

Published online: 25 Mar 2014 *

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