Abstract
In this paper we describe how some well-known deficiencies of managerial decision making models can be overcome by combining previous work of Zebda [Zebda 1984] and de Korvin [de Korvin et al. 1995] with Keynes's conventional coefficient c which has recently been revived by Brady [Brady 1994], Furthermore, in this paper we will show how the described approach can be applied to the standard problem of managerial decision making, especially when selecting the policy that promises the highest gain.
This is a preview of subscription content, log in via an institution to check access.
Preview
Unable to display preview. Download preview PDF.
References
R. Bellman and L.A. Zadeh, “Decision making in a fuzzy environment”, Management Science. 17, 1970, 141–164.
M. Brady, “On the Application of J.M. Keynes's Approach to Decision Making”, International Studies in the Philosophy of Science, vol. 8, No. 2, 1994, 99–112.
A. de Korvin, S. Hashemi, G. Quirchmayr, and S. Hord, “Selecting the policy with the minimal average cost”, accepted for the IFIP TC7 Conference on Systems Modeling and Optimization, Prague 1995.
D. Ellsberg, “Risk, Ambiguity, and the Savage Axioms”, Quarterly Journal of Economics. vol. 75, 1961, 643–669.
R. Jain, “A Procedure For Multiple Aspect Decision Making Using Fuzzy Sets,” International Journal of System Science. Vol. 8 1977, pp. 1–7.
D. Kahneman and A. Tversky, “Prospect Theory: An Analysis of Decision Under Risk”, Econometrica. 47, 1979, 273.
J.M. Keynes, “A Treatise on Probability” (London, Macmillan), AMS Press Reprint, 1979.
R. Kleyle and A. de Korvin, “Object Identification When Imprecise Information is Available from Multiple Sources of Unequal Reliability”, The Journal of Intelligent and Fuzzy Systems, vol. 2, 1994, 191–199.
L.A. Zadeh [et al.] (eds.), “Fuzzy Sets and Their Applications to Cognitive and Decision Process”, Academic Press, New York 1975.
L.A. Zadeh, “Fuzzy Sets and Applications: Selected Papers”, Yager, R.R. [et al.] eds., Wiley, New York 1987.
A. Zebda, “The Investigation of Cost Variances: A Fuzzy Set Theory Approach”, Decision Sciences, 15, 1984, 359–389.
Author information
Authors and Affiliations
Editor information
Rights and permissions
Copyright information
© 1995 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
de Korvin, A., Quirchmayr, G., Hashemi, S. (1995). A fuzzy model of managerial decision making incorporating risk and ambiguity aversion. In: Revell, N., Tjoa, A.M. (eds) Database and Expert Systems Applications. DEXA 1995. Lecture Notes in Computer Science, vol 978. Springer, Berlin, Heidelberg. https://doi.org/10.1007/BFb0049111
Download citation
DOI: https://doi.org/10.1007/BFb0049111
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-60303-0
Online ISBN: 978-3-540-44790-0
eBook Packages: Springer Book Archive