The Investment Decision Analysis Method And Its Application Of Enterprise Based On Prospect Theory

With the development of national economy and the social improvement of living standards, enterprise construction investment increased, the scientific enterprise investment evaluation method has become an issue of common concern to the current. The existing decision-making method of the enterprise investment usually assumes that decision-makers are completely rational, which does not conform to the reality. Based on prospect theory, this paper studies the enterprise investment decision making problems and establishes the decision model. The main work of this paper is shown as follows:First, for the attribute weights are partially known, by using the entropy theory and prospect theory and combing the entropy minimization principle, we develop a prospect entropy model to determine the optimal weight. By using the prospect theory and comprehensive prospect value maximization principle, we propose a comprehensive prospect value maximization model to determine the optimal weights. For the attribute weights are completely unknown, by using grey theory and prospect theory and combing the concept of grey correlation degree, we develop a prospect grey relational model to determine the optimal weight. By using the prospect theory and combing the principle of maximizing deviations, we propose a prospect maximizing deviations model to determine the optimal weights.Second, for the investment decision-making problem of enterprises, we put forward the real numbers and two-tuple linguistic enterprise investment decision analysis method based on prospect theory and TOPSIS. Real numbers prospect TOPSIS enterprise investment decision-making analysis method is a blend of prospect theory, prospect entropy method and TOPSIS method, by investigating the similarity degree of each scheme and ideal solution to evaluate the superiority of solution. Two-tuple linguistic enterprise investment decision analysis method defines the two-tuple linguistic positive and negative point and of two-tuple linguistic prospect relative closeness concept to find the optimal investment alternative. Finally the case analysis shows that the feasibility and effectiveness of the two methods.Third, for the investment decision-making problem of enterprises, we propose the real numbers and two-tuple linguistic enterprise investment decision analysis method based on prospect theory and grey target theory. Real numbers enterprise investment decision-making analysis method is a blend of prospect theory, prospect grey correlation degree and grey target method. by investigating the distance between each scheme and the bull’s-eye to evaluate the superiority of solution. Two-tuple linguistic enterprise investment decision analysis method defines two-tuple linguistic bull’s-eye, two-tuple linguistic prospect bull’s-eye (relatively) correlation to find the optimal investment...