Stakeholder compensation model based on decision analysis

✍ Scribed by Tony Rosqvist

• Publisher: John Wiley and Sons
• Year: 2003
• Tongue: English
• Weight: 96 KB
• Volume: 12
• Category: Article
• ISSN: 1057-9214
• DOI: 10.1002/mcda.359

✦ Synopsis

Abstract

A prescriptive decision model of stakeholder compensation is presented. The supra decision‐maker (regulator) may derive the optimal compensation for redefining decision options in a decision context with unevenly distributed, uncertain, consequences in a way that reflects fairness among stakeholders with different representational weight and risk‐attitude. The derived compensation is used by the supra decision‐maker as a bargaining factor for committing stakeholders in a decision‐making process. Expert judgement is utilized for specifying the probability distributions related to the uncertain consequences. Copyright © 2004 John Wiley & Sons, Ltd.