A theorem for Bayesian group decisions
This paper presents a natural extension of Bayesian decision theory from the domain of individual decisions to the domain of group decisions. We assume that each group member accepts the assumptions of subjective expected utility theory with respect to the alternatives from which they must choose, but we do not assume, a priori, that the group as a whole accepts those assumptions. Instead, we impose a multiattribute utility independence condition on the preferences of the group with respect to the expected utilities of its actions as appraised by its members. The result is that the expected utility of an alternative for the group is a weighted average of the expected utilities of that alternative for its members. The weights must be determined collectively by the group. Pareto optimality is not assumed, though the result is consistent with Pareto optimality. © 2011 Springer Science+Business Media, LLC.
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- Economics
- 3802 Econometrics
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics
Citation
Published In
DOI
EISSN
ISSN
Publication Date
Volume
Issue
Start / End Page
Related Subject Headings
- Economics
- 3802 Econometrics
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
- 1402 Applied Economics