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Consensus Group Decision Making Under Model Uncertainty with a View Towards Environmental Policy Making

Author

Listed:
  • P. Koundouri

    (Athens University of Economics and Business
    Technical University of Denmark
    ATHENA RC
    Sustainable Development Solutions Network-Europe)

  • G. I. Papayiannis

    (University of Piraeus
    Mathematical Modelling and Applications Laboratory, Section of Mathematics, Hellenic Naval Academy
    Athens University of Economics and Business)

  • E. V. Petracou

    (University of the Aegean)

  • A. N. Yannacopoulos

    (Athens University of Economics and Business)

Abstract

In this paper we propose a consensus group decision making scheme under model uncertainty consisting of an iterative two-stage procedure based on the concept of Fréchet barycenter. Each stage consists of two steps: the agents first update their position in the opinion metric space adopting a local barycenter characterized by the agents’ immediate interactions and then a moderator makes a proposal in terms of a global barycenter, checking for consensus at each stage. In cases of large heterogeneous groups, the procedure can be complemented by an auxiliary initial homogenization stage, consisting of a clustering procedure in opinion space, leading to large homogeneous groups for which the aforementioned procedure will be applied. The scheme is illustrated in examples motivated from environmental economics.

Suggested Citation

  • P. Koundouri & G. I. Papayiannis & E. V. Petracou & A. N. Yannacopoulos, 2024. "Consensus Group Decision Making Under Model Uncertainty with a View Towards Environmental Policy Making," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(6), pages 1611-1649, June.
    • Handle: RePEc:kap:enreec:v:87:y:2024:i:6:d:10.1007_s10640-024-00846-1
    DOI: 10.1007/s10640-024-00846-1
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    References listed on IDEAS

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