A Deviation Index Proposal to Evaluate Group Decision Making Based on Equilibrium Solutions

Author(s)

Leoneti, Alexandre Bevilacqua ; de Sessa, Fernanda ; Bajwa, D ; Koeszegi, ST ; Vetschera, R

• Document type: Journal article
• Source: GROUP DECISION AND NEGOTIATION: THEORY, EMPIRICAL EVIDENCE, AND APPLICATION, GDN 2016; v. 274, p. 12-pg., 2017-01-01.

Abstract

The equilibrium proposed by Nash provides a basis from which group decisions can be selected. This kind of choice establishes a situation in which none of the participants will have any incentive to change their strategy if they are acting rationally, which is the major assumption of game theory. Leoneti proposed a utility function that allows multi-criteria problems to be modeled as games in order to find alternatives that meet the Nash equilibrium conditions for solving conflicts in group decision-making process. The objective of this research was to propose a deviation index from the theoretical rational decision (the Nash equilibrium solution) and to discuss the use of this index as an indicator of the theoretical rationality deviation. In accordance with other results presented in the literature, it was found that the group might not always choose this alternative, deviating from the equilibrium solutions, measured here by a deviation index. (AU)

• FAPESP's process: 16/03722-5 - Structural development for the use of Game Theory in organizational group multicriteria decision making problem solving
• Grantee: Alexandre Bevilacqua Leoneti
• Support Opportunities: Regular Research Grants
• FAPESP's process: 14/09540-0 - Proposition of a deviation equilibrium index for solutions based on the application of multi-criteria method based on Game Theory
• Grantee: Fernanda de Sessa
• Support Opportunities: Scholarships in Brazil - Scientific Initiation