Authors
Junzo Watada
Publication date
2001
Journal
Dynamical aspects in fuzzy decision making
Pages
141-162
Publisher
Physica-Verlag HD
Description
Financial engineering is one of the most important fields, today. Soft-computing methodologies are widely employed in financial engineering. Many problems of decision-making in investment have mainly been studied from optimizing points of view. As the investment is much influenced by the disturbance of a social and economical circumstances, optimization approach is not always the best. It is because problems used to be ill-structured under such influences. Therefore, a satisfaction approach is much better than an optimization one. In this discussion, we employ the aspiration level on the base of past experiences and knowledge possessed by a decision maker to treat a problem. That is, the aspiration level of the decision maker should be considered to solve a problem from the perspective of satisfaction strategy. It is more natural that the vague aspiration level of a decision maker is denoted as a fuzzy …
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