Multi-attribute Group Decision Making Model of the Venture Capital Syndication Based on Three-dimensional Trust Network

Abstract

Abstract: In the case of information asymmetry, the progress of joint venture investment decision-making presents the characteristics of multi-attribute group decision-making, and in the context of networking and socialization, the trust relationship among institutions will influence the decision-making results. This paper proposes a multi-attribute group decision-making model for joint venture investment based on three-dimensional trust network. Firstly, the two-dimensional trust function is expanded into a three-dimensional form. The trust network is established by determining the trust matrix based on the times of investment and corporation among the investors. Secondly, the probabilistic language set and the trust evaluation are combined to describe the evaluation information of the investors, reflecting the fuzzy characteristics of venture capitalists’ investment decision making. Thirdly, the group consensus is improved by introducing visual interactions, and the independence of individual opinions and group consensus are balanced by using opinion adoption factors. Finally, an example is given to illustrate the practicability of the proposed method and the robustness of the decision results.

Key words: venture capital, joint investment, multi-attribute group decision-making, social network, probabilistic linguistic term set

Zhao Meng, Pan Ruiying, Xiao Qirui. Multi-attribute Group Decision Making Model of the Venture Capital Syndication Based on Three-dimensional Trust Network[J]. Management Review, 2021, 33(6): 98-110.

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