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3
Aggregation of Preferences
Our aim is to define an aggregation mechanism by which a notion of group prefer-
ence ordering can emerge from the aggregation of conditional individual preference
orderings. An essential characteristic of any such mechanism is that it must possess the
following property.
Principle 4 (Monotonicity). If a subgroup prefers one alternative to another and the
complementary subgroup is indifferent with respect to the two alternatives, then the
group as a whole must not prefer the latter alternative to the former one.
Principle 4 invokes the common sense concept that, in the absence of opposition, the
group must not arbitrarily override the wishes of individuals. Thus, if X 1 prefers a to
a and X 2 is indifferent between the two profiles, the group
should not prefer
a to a . In terms of utilities, this condition means that F must be nondecreasing in both
arguments.
When modeling influence relationships, it is critical that we delimit generality to
ensure computational tractability. We thus propose the following principle.
{
X 1 ,X 2 }
Principle 5 (Acyclicity).
No cycles occur in the influence relationships among the
agents.
X k and
X m of
X n , acyclicity means that it cannot hap-
Given two disjoint subgroups
X m .
The fact that cycles are not permitted does reduce the generality of the model. Never-
theless, restricting to one-way influence relationships is a significant generalization of
the neoclassical approach, which assumes that all utilities are categorical and, hence,
are trivially acyclical.
X m directly influences
X k and
X k directly influences
pen that, simultaneously,
3.1
The Aggregation Theorem
It remains to define a function F that complies with the above-mentioned principles.
Since positive affine transformations preserve the mathematical integrity of von
Neumann-Morgenstern utilities, we may assume, without loss of generality, that all
utilities are non-negative and normalized to sum to unity; that is,
U X k ( α k )
0
α k , U X m | X k ( α m |
α k )
0
α m k ,
(5)
U X k ( α k )=1 ,
α m
U X m | X k ( α m |
α k )=1
α k .
(6)
α k
Theorem 1 (The Aggregation Theorem.). Let
X n =
{
X 1 ,...,X n }
be an n -member
multiagent system and let
B m denote the set of all m -element subgroups of
X n . That is,
X m ∈B m if
X m =
X m
{
X i 1 ,...,X i m }
with 1
i 1 <
···
<i m
n .Let
{
U X m :
B m ,m =1 ,...,n
}
be a family of normalized non-negative concordant utilities and let
X m ∩X k =
X m ∈B m ,
X k ∈B k ,m + k
{
U X m | X k :
,
n
}
(7)
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