Decision Analysis Working Paper Abstract
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WP030021
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Title: Group Decisions with Multiple Criteria
Authors: Manel
Baucells IESE Business School, University of Navarra & Duke
University and Rakesh
K. Sarin, UCLA
Date: Feb 18, 2003
Status: Working Paper
We consider a decision problem where a group of individuals evaluates multiattribute
alternatives. We explore the minimal required agreements that are sufficient
to specify the group utility function. A surprising result is that, under
some conditions, a bilateral agreement among pairs of individuals on a
single attribute is sufficient to derive the multi-attribute group utility.
The bilateral agreement between a pair of individuals could be on the weight
of an attribute, on an attribute evaluation function, or on willingness
to pay. We focus on the case in which each individual’s utility function
is additive. We show that the group utility can be represented as
the weighted sum of group attribute weights and, more remarkably, of attribute
evaluation functions. These group attribute evaluation functions
are in turn weighted sums of individual attribute evaluation functions.
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