Potential Variability of Decisional Skills in Uncertain Dichotomous Choice Situations

The main concern of this paper is the selection of optimal decision rules for groups of individuals with identical preferences but diverse and potentially variable independent decisional skills. Employing the uncertain dichotomous choice model the main results illustrate how optimality and sensitivity analysis can be pursued while explicitly recognizing decision-making costs associated with potential variability of decisional skills. For panels of experts consisting of three members our analysis focuses on three special cases of potential variability in individual skills. The extended optimality problem is analyzed resolving the dilemma which of the two common rules, the simple majority rule or the expert rule, is the better selection for the group. The sensitivity of the two rules to variability of decisional skills is also investigated.