Maximum Group Perceived Utility Consensus Models Considering Regret Aversion

• Published in: 东华大学学报（英文版） Vol. 39; no. 2; pp. 163 - 175
• Main Authors: XUE Yuqin, CHENG Dong
• Format: Journal Article
• Language: English
• Published: Glorious Sun School of Business and Management,Donghua University,Shanghai 200051,China 2022
• Subjects: regret aversion; interval preference; maximum perceived utility; consensus model
• ISSN: 1672-5220
• DOI: 10.19884/j.1672-5220.202110007

C934; In the consensus-reaching process ( CRP ) , the actual utility of decision-makers ( DMs ) is often influenced by the psychological behavior of regret aversion. However, the influence of regret aversion on DMs ' utilities is rarely taken into account in the existing consensus models. The consensus-reaching problem of DMs with regret aversion is explored to maximize their perceived utilities under a limited budget. Firstly, three basic types of perceived utility functions are constructed based on the regret theory to describe the perceived utility of DMs with various preferences. Then, considering the limited budget and individual regret aversion, the maximum perceived utility consensus models based on types of left-skewed, right-skewed, middle-skewed, and heterogeneous utility preferences are proposed to achieve the consensus that maximizes the group perceived utility. After that, an example of land-transfer price negotiation in China is given to illustrate the validity of the proposed models. Finally, the model comparison and the sensitivity analysis are presented to reveal the influence of DMs' regret aversion on the CRP. The results suggest that the DMs ' regret aversion will not affect left-skewed and right-skewed groups, but will affect the consensus results of middle-skewed and heterogeneous groups.