Group Decision Making Model under Risk Based on Bounded Rationality

To overcome the shortcomings in traditional approaches such as bad satisfaction, bad effectiveness and so on, three key bounded rationality assumptions are proposed firstly, i.e., risky preference is invariable, decision cost is existing, and group cognitive ability is only unbounded rational. After that, an efficient prospect deriving model is presented by data envelopment analysis with assurance region to derive efficient alternatives from inadequate decision information. The presented model is able to reflect the subjective risky preferences of group members and derive efficient alternatives under the premise of existing acquisition costs, and thus it can Make the satisfactory and effective decision.