Quality of group decisions

This article develops a model for calculating the quality of group decisions judged by a profit oriented principal using a simulation approach. The model analyzes the average decision quality of a heterogeneous group considering its preferences, qualification, size, personal interest, risk aversion, and conformity of its members. The decision process contains interaction within the group and voting under strategic behaviour, using the Harsanyi–Selten approach. The simulation calculates the chosen alternative and quantifies the impact of the parameters on the average decision quality.