MANAGING CONSENSUS BY MULTI-STAGE OPTIMIZATION MODELS WITH LINGUISTIC PREFERENCE ORDERINGS AND DOUBLE HIERARCHY LINGUISTIC PREFERENCES

Author:

Gou Xunjie1,Xu Zeshui2,Zhou Wei3ORCID

Affiliation:

1. Business School, Sichuan University, Chengdu 610064, China; School of Computer and Software, Nanjing University of Information Science and Technology, Nanjing 210044, China

2. Business School, Sichuan University, Chengdu 610064, China

3. School of Finance, Yunnan University of Finance and Economics, Kunming 650221, China

Abstract

Preference ordering structures are useful and popular tools to represent experts’ preferences in the decision making process. In the existing preference orderings, they lack the research on the precise relationship between any two adjacent alternatives in the preference orderings, and the decision making methods are unreasonable. To overcome these issues, this paper establishes a novel concept of linguistic preference ordering (LPO) in which the ordering of alternatives and the relationships between two adjacent alternatives should be fused well, and develops two transformation models to transform each LPO into the corresponding double hierarchy linguistic preference relation with complete consistency. Additionally, to fully respect the experts’ expression habits and provide more refined solutions to experts, this paper establishes a multi-stage consensus optimization model by considering the suggested preferences represented in both the continuous scale and the discrete scale, and develops a multi-stage interactive consensus reaching algorithm to deal with multi-expert decision making problem with LPOs. Furthermore, some numerical examples are presented to illustrate the developed methods and models. Finally, some comparative analyses between the proposed methods and models and some existing methods have been made to show the advantages of the proposed methods and models.

Publisher

Vilnius Gediminas Technical University

Subject

Finance

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