Multiple criteria decision problems with fuzzy domination structures

The concepts of domination structures and nondominated solutions in multiple criteria decision problems, which were introduced by Yu, enable us to tackle general situations in which there exists information concerning the decision maker's preferences.In many of the multiple criteria decision problems the underlying domination structures are not known precisely but only fuzzily determined. Yu primarily works with the case where the domination structure at each point is a convex cone. As a result, there exists a sharp borderline dividing all solutions into nondominated solutions and the others.This paper fuzzifies the concepts of domination structures and nondominated solutions to allow them to be applied to a larger class of the multiple criteria decision problems mentioned above. Introducing the concepts of fuzzy convex cones and fuzzy polar cones, it is shown how some of the main results obtained by Yu are extended.     

Fuzzy sets and the modelling of physician decision processes,part I: The initial interview-information gathering session

Most mathematical models of physician decision processes offered to date, especially those relative to diagnosis and patient treatment, suffer from the inability to incorporate all useful data on the patient. Pertinent information so neglected or poorly modelled relate to variables that are intrinsically fuzzy but which describe the patient's health status. We present mathematical models based on fuzzy set theory for physician aided evaluation of a complete representation of information emanating from the initial interview including patient past history, present symptoms, signs observed upon physical examination, and results of clinical and diagnostic tests.     

On the fuzzy team decision in a changing environment

This paper formulates a fuzzy team decision problem in a changing environment. The concept of a fuzzy set is introduced to formulate the team decision processes in a dynamic environment which contains fuzzy states, fuzzy information functions, fuzzy information signals, fuzzy decision functions and fuzzy actions.     

Fuzzy goal programming with nested priorities

This paper proposes a new approach to formulating fuzzy priorities in a goal programming problem. The proposed methodology remedies certain shortcomings of the composite membership function approach discussed in previous works [7, 10]. The principal advantage of the proposed method is that it leads to a formulation in which tradeoffs between goals more closely reflect the decision maker's intentions than in other noninteractive approaches [8, 9, 10, 14], in some of which a fixed hierarchy of goals is assumed.     

Asymptotic structural characteristics of fuzzy measure and their applications

In fuzzy measure theory, as Sugeno's fuzzy measures lose additivity in general, the concept ‘almost’, which is well known in classical measure theory, splits into two different concepts, ‘almost’ and ‘pseudo-almost’. In order to replace the additivity, it is quite necessary to investigate some asymptotic behaviors of a fuzzy measure at sequences of sets which are called ‘waxing’ and ‘waning’, and to introduce some new concepts, such as ‘autocontinuity’, ‘converse-autocontinuity’ and ‘pseudo-autocontinuity’. These concepts describe some asymptotic structural characteristics of a fuzzy measure.In this paper, by means of the asymptotic structural characteristics of fuzzy measure, we also give four forms of generalization for both Egoroff's theorem, Riesz's theorem and Lebesgue's theorem respectively, and prove the almost everywhere (pseudo-almost everywhere) convergence theorem, the convergence in measure (pseudo-in measure) theorem of the sequence of fuzzy integrals. In the last two theorems, the employed conditions are not only sufficient, but also necessary.     

Own-company stockholding and work effort preferences of an unconstrained executive

We develop a framework for analyzing an executive’s own-company stockholding and work effort preferences. The executive, characterized by risk aversion and work effectiveness parameters, invests his personal wealth without constraint in the financial market, including the stock of his own company whose value he can directly influence with work effort. The executive’s utility-maximizing personal investment and work effort strategy is derived in closed form, and a utility indifference rationale is applied to determine his required compensation. Being unconstrained by performance contracting, the executive’s work effort strategy establishes a base case for theoretical or empirical assessment of the benefits or otherwise of constraining executives with performance contracting.     

On optimal decisions under complete ignorance: A new criterion stronger than both Pareto and Maxmin

This paper discusses properties of a new defensive decision criterion which is strictly stronger than both Pareto and Maxmin starting with a two-person game-against-nature situation where the decision maker has no information (not even of a probabilistic nature) on the opponent's behaviour. The new criterion can be logically motivated without reference to Pareto or Maxmin. An ordinalistic view is taken with preference relations induced by a connected quasi-order-valued utility function, and no assumptions are made about the structure of the set of strategies. In cases where the set of the opponent's strategies is finite, there is a connection with what will be called the Lexicographic Decision Criterion.     

On the complexity of growth of the number of distinct fuzzy switching functions

Several attempts have been made to enumerate fuzzy switching (FSF's) and to develop upper and lower bounds for the number of FSF's of n variables in an effort to better understand the properties and the complexity of FSF's. Previous upper bounds are 2⁴ⁿ [9] and 2^{2–3n—2n—1} [7].It has also been shown that the exact numbers of FSF's of n variables for n = 0, 1, 2, 3, and 4 are 2, 6, 8, 84, 43 918 and 160 297 985 276 respectively.This paper will give a brief overview of previous approaches to the problem, study some of the properties of fuzzy switching functions and give improved upper and lower bounds for a general n.     

Parameterized approximation of fuzzy number with minimum variance weighting functions

In the parameterized fuzzy number expectation and fuzzy number interval approximation with the weighting function method, we once considered the weighting function form with maximum entropy, which has some interesting properties. In the present paper, we will propose another kind of parameterized weighting function with minimum variance, and apply it to the fuzzy number expectation and fuzzy number interval approximation problems. It shows that the minimum variance weighting function also has some similar interesting properties, and can be used to express the decision maker’s preference information in the fuzzy number defuzzification process.     

Fuzzy approach in psychophysical modeling of human operator-manual lifting system

A fuzzy representation of the human operator decision-making process of selecting the maximum acceptable weight of manual lift is developed. Measures of acceptability are expressed in terms of membership functions which describe the degree to which the combined effect of biomechanical and physiological stresses is acceptable to the human operator. It is assumed that the combination of these two stresses has a synergistic effect on the individual's performance, and that the perception of this effect is reflected in an operator's choice when selecting the preferable weight of lift. The combined acceptabilities of a lifting task are compared to the subjective capacity norms established by the subjects in a psychophysical experiment. The conditions under which the distance between acceptability measures of the combined and the psychophysical stresses can be minimized are established. It is concluded that at a certain level of similarity between the acceptability measures of these stresses, a decision is made, and the preferred weight of lift selected.     

The influence of some fuzzy implication operators on the accuracy of a fuzzy model-part II

The influence of fuzzy implication operators and the connective Also on the accuracy of a fuzzy model of a d.c. series motor is considered. Some typical fuzzy implication operators are applied to the construction of a fuzzy model of a d.c. series motor. A root-mean-square error is used as the criterion of the fuzzy model's adequacy to the real system. A number of mathematical operations necessary for the implementation of the fuzzy model are used as the criterion by which the fuzzy model's applicability if estimated from the point of view of computing techniques. The best types of fuzzy relations, representing fuzzy models of a real system, are chosen in order to secure the least root-mean-square error with minimal number of mathematical operations necessary for computer implementation.     

Distinction between several subsets of fuzzy measures

In this paper, we place several fuzzy measure subsets in relation one with the other. The subsets under study are those corresponding to the definitions of probability measure. Sugeno's g_λ-measure, Shafer's belief function and Zadeh's possibility measure. We study the intersection of these subsets and we show the particular role of Dirac's measures in this comparison. We limit ourself to the case of mappins whose domain is the collection of all subsets of a finite set.Finally, the obtained partial results are summarized in only one figure which shoul clarify the specificity of each of the above definitions.     

Does stock return predictability affect ESO fair value?

Executive Stock Options (ESOs) are modified American options that cannot be valued using standard methods. With a few exceptions, the literature has discussed the ESO fair value by assuming unpredictable stock returns which are not supported by the available empirical evidence. In this paper we obtain the fair value of American ESOs when stock returns are predictable and, specifically, driven by the trending Ornstein–Uhlenbeck process of Lo and Wang (1995). We solve the executive’s portfolio allocation problem for a simple buy-and-hold strategy when his wealth can be distributed between a risk-free asset and a market portfolio. This problem is jointly solved with the executive’s optimal exercise policy. We find that executives tend to wait longer the higher the predictability, independently of the composition of executive’s asset menu. We have also analyzed the implications under the FAS123R proposals for the ESO fair value and found that, even for low autocorrelations, there is a meaningful mispricing when unpredictable returns are erroneously assumed.     

An outranking-based general approach to solving group multi-objective optimization problems

This paper presents a general approach to solving multi-objective programming problems with multiple decision makers. The proposal is based on optimizing a bi-objective measure of “collective satisfaction”. Group satisfaction is understood as a reasonable balance between the strengths of an agreeing and an opposing coalition, considering also the number of decision makers not belonging to any of these coalitions. Accepting the vagueness of “collective satisfaction”, even the vagueness of “person satisfaction”, fuzzy outranking relations and other fuzzy logic models are used.     

Long-term inventory policy-making through fuzzy decision-making models

The inventory policy, meant as a replenishment rule, has a considerable impact on most firms. The paper considers the determination of optimal inventory policy of firms from a global viewpoint of top management. The inventory is represented as a fuzzy system with the fuzzy inventory level as the output, the fuzzy replenishment as the input and fuzzy demand. The control problem is formulated in terms of decision-making in a fuzzy environment with fuzzy constraints imposed on replenishments, a fuzzy goal for preferable inventory levels to be attained and the fuzzy decision as the intersection of fuzzy constraints and the fuzzy goal at subsequent stages. The planning horizon is infinite. The problem is to find an optimal time-invariant strategy relating the optimal replenishments to the current inventory levels, maximizing the membership function of fuzzy decision. The existence of such a strategy is proved and an algorithm for its determination is given. The optimal time-invariant strategy obtained is represented as a fuzzy conditional statement equated with a fuzzy relation which is the firm's optimal fuzzy replenishment rule.     

Fuzzy processes

In this paper, contributions to fuzzy probability and to differential equations with fuzzy parameters are made.After an introductory section, a review of fuzzy sets and fuzzy algebra is given in Section 2. The main new results of the investigation are contained in Section 3.In Section 3, Zadeh's definition of the probability of a ‘fuzzy event’ the average value of a fuzzy function are extended into the time domain. It is then shown that not only grades of membership, but also probabilistic processes with notions of fuzziness contained, can be defined which obey ordinary, matric, or integro-differential equations. Applications are also given in Section 3.     

Coalitional power structure without the pareto principle

In this paper we have extended Arrow's analysis to a framework where for any given profile of individual preference orderings the decision procedure specifies a non-trivial probability distribution over possible social orderings. We have demonstrated that if the social decision procedure satisfies certain probabilistic versions of weak independence of irrelevant alternatives, then it is characterized by a ‘power’ structure for all possible coalitions of individuals without assuming either the Pareto Principle or its antecedents. A generalised version of Arrow's impossibility theorem follows as a special case of our result. We have weakened Arrow's independence condition, and have shown the existence of a hierarchy of dictators without imposing the Pareto criterion.     

On the optimal level of a small country's strategic petroleum reserve

Decisions relating to a country's strategic petroleum reserve must take into account the level of risk inherent in its petroleum imports, the cost resulting from any shortfall in the import level, the cost of storage, and finally the effects of stockpiling transactions on the sensitive spot oil markets. Of course, small countries need not take into account their effect on the global market, a fact that drastically simplifies their decision problem. We present such a simple decision model for a small country's petroleum reserve which in addition to the above factors take into account the uncertainty of the country's refining capacity. A complete analytical treatment is feasible for this model, and a specific numerical example is presented for the case of Greece.