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An Approach of Group Decision Making with Efficiency and Equity
Zhou Lingling, Yang Lei
1998, 17(4):
112-117.
There does not exist a continuous group utility function which results in decisions that obey both the Pareto optimality and equity criterin (Kirkwood, 1979). This paper presents away to build model which can solve efficiency and equity in group decision, the dissertation decomposes the group decision into internal decision and external decision. The former is decision about fairness, and the latter is decision about efficiency. The decision model enables the group to take into account equity consideration without sacrificing Pareto optimality. The individual utility function is aggregated to form a group utility function for the vector of pay offs, and this latter function is, in turn, used to generate a group utility function for the overall group payoff and a sharing rule for dividing the group payoff into individual payoffs. The resulting group decisions are Pareto optimal in utility space, and are equity in payoff space.
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