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Consensus group decision making under model uncertainty with a view towards environmental policy making

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  • Phoebe Koundouri
  • Georgios I. Papayiannis
  • Electra V. Petracou
  • Athanasios N. Yannacopoulos

Abstract

In this paper we propose a consensus group decision making scheme under model uncertainty consisting of an iterative two-stage procedure and based on the concept of Fr\'echet barycenter. Each step consists of two stages: the agents first update their position in the opinion metric space by 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 step. In cases of large heterogeneous groups the procedure can be complemented by an auxiliary initial homogenization step, 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

  • Phoebe Koundouri & Georgios I. Papayiannis & Electra V. Petracou & Athanasios N. Yannacopoulos, 2023. "Consensus group decision making under model uncertainty with a view towards environmental policy making," Papers 2312.00436, arXiv.org.
    • Handle: RePEc:arx:papers:2312.00436
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    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • C0 - Mathematical and Quantitative Methods - - General

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