The Potential of Prospect Theory under Inductive Reasoning

The TODIM method was the first Multiple Criteria Decision Making (MCDM) approach to incorporate the advances of judgment and decision theory based on the findings of prospect theory. Since its advent, several studies have proposed new methods for the same purpose, such as Behavioral TOPSIS. Additionally, new versions of the original TODIM method have been developed to enhance its adherence to prospect theory. Among these approaches, the ExpTODIM version demonstrated high accuracy in predictions under deductive reasoning scenarios. In this research, an inductive reasoning analysis of the potential of ExpTODIM and Behavioral TOPSIS is conducted. The results are then compared with a native inductive reasoning method, namely multinomial regression analysis. It was found that ExpTODIM demonstrated strong potential for applications under an inductive reasoning perspective, which supports the application of prospect theory in tasks such as autonomous classification, a key area in artificial intelligence studies.