Multi-Criteria Decision-Making for Power Grid Construction Project Investment Ranking Based on the Prospect Theory Improved by Rewarding Good and Punishing Bad Linear Transformation

Using the improved prospect theory with linear transformations of rewarding good and punishing bad (RGPBIT), a new investment ranking model for power grid construction projects (PGCPs) is proposed. Given uncertainty each index value under market environment, fuzzy numbers are used to describe qualitative indicators interval quantitative ones. Taking into account decision-maker’s subjective risk attitudes, multi-criteria decision-making (MCDM) method based on First, [−1, 1] RGPBIT operator proposed normalize original data, obtain best worst schemes PGCPs. Furthermore, correlation coefficients between interval/fuzzy best/worst defined introduced improve its function loss function, positive negative matrices project obtained. Then, optimization maximum comprehensive constructed, optimal attribute weight determined, PGCPs ranked accordingly. four IEEERTS-79 node system as examples, an illustration feasibility effectiveness provided.