Abstract Alternative selection is one of the most important problems in new product development. To select the most desirable alternative from the available set of new product development alternatives, a decision-making analysis approach based on prospect theory is proposed. In the approach, the prospect reference point is determined by considering the evaluation information of competing product alternatives. Then, the prospect value function and weight function are given. Further, the prospect values of new product development alternatives and competing product alternatives are calculated and compared, and the most desirable new product development alternative is selected. Finally, an example is given to illustrate the feasibility and effectiveness of the proposed approach.
2012, Vol. 9 
