Type-1 OWA Unbalanced Fuzzy Linguistic Aggregation Methodology. Application to Eurobonds Credit Risk Evaluation

In decision making, a widely used methodology to manage unbalanced fuzzy linguistic information is the linguistic hierarchy (LH), which relies on a linguistic symbolic computational model based on ordinal 2-tuple linguistic representation. However, the ordinal 2-tuple linguistic approach does not exploit all advantages of Zadeh’s fuzzy linguistic approach to model uncertainty because the membership function shapes are ignored. Furthermore, the LH methodology is an indirect approach that relies on the uniform distribution of symmetric linguistic assessments. These drawbacks are overcome by applying a fuzzy methodology based on the implementation of the Type-1 Ordered Weighted Average (T1OWA) operator. The T1OWA operator is not a symbolic operator and it allows to directly aggregate membership functions, which in practice means that the T1OWA methodology is suitable for both balanced and unbalanced linguistic contexts and with heterogeneous membership functions. Furthermore, the final output of the T1OWA methodology is always fuzzy and defined in the same domain of the original unbalanced fuzzy ∗Corresponding author