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Decision-making model for China’s stock market bubble warning: the CoCoSo with picture fuzzy information

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Abstract

With the financial liberalization and globalization, China’s financial system has been deepening, the scale of the stock market has been expanding, and the stock market bubble problem has gradually emerged. The overinflated stock market bubble will undoubtedly increase the risk of the stock market, seriously threaten the stability of the financial system, and even bring disastrous consequences to the economic system. Therefore, the stock market bubble warning evaluation is very important. In the case of considering stock market bubble warning evaluation, the fundamental issues involve strong fuzziness. Picture fuzzy set, depicted by three memberships (positive membership, neutral membership and negative membership), is a more resultful means for capturing fuzziness. In this paper, the novel picture fuzzy score function is given for dealing the comparison problem. Then, the objective weights are calculated by Renyi entropy method. Meanwhile, we develop combined weights, which can reflect both subjective preference and objective preference. Moreover, the picture fuzzy decision making algorithm based on Combined Compromise Solution is presented. Finally, the feasibility of algorithm is stated by the stock market bubble warning evaluation issue. The salient features of the proposed algorithm are that they have no counter-intuitive cases and antilogarithm or division by zero issues.

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Acknowledgements

This work was supported by the National Natural Science Foundation of China [Grant Numbers 61806213, 62006155]; the Humanities and Social Sciences of Ministry of Education in China [Grant Number 18YJCZH054]; the Natural Science Foundation of Guangdong Province [Grant Numbers 2018A030307033, 2018A0303130274]; the Social Science Foundation of Guangdong Province [Grant Number GD18CFX06]; and the Special Innovation Projects of Universities in Guangdong Province [grant number KTSCX205].

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  1. College of Computer, National University of Defense Technology, Changsha, 410073, China

    Xindong Peng & Zhigang Luo

  2. School of Information Engineering, Shaoguan University, Shaoguan, 512005, China

    Xindong Peng

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  1. Xindong Peng
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  2. Zhigang Luo
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Correspondence to Xindong Peng.

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Peng, X., Luo, Z. Decision-making model for China’s stock market bubble warning: the CoCoSo with picture fuzzy information. Artif Intell Rev 54, 5675–5697 (2021). https://doi.org/10.1007/s10462-021-09954-6

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