Consensus Measure With Multi-stage Fluctuation Utility Based On China’s Urban Demolition Negotiation

The ultimate goal of group consensus decision making (GDM) is to gather all individual opinions for obtaining a group opinion accepted by the most participants in the group, so as to achieve a consensus. Consensus decision-making process requires not only a person or the entire group with superb leadership who can dominate the development of the decision making, but also needs to consider the following factors:the cost of negotiation, individual utility preference, and the efficiency of reaching the consensus.In this paper, China’s urban demolition is taken as the background, we try to apply the related theoretical results of consensus decision making to the negotiation process of the urban demolition, and to provide a scientific and strongly support for China’s urban demolition. Specifically, this paper firstly constructs a minimum budget model under the premise of satisfying all individuals’ compensation demands, and find the minimum budget for reaching the consensus as well as individuals’ optimal compensation price by using Lingo software; secondly, considering the consensus level, and the preference level of all members when facing different prices, this paper will introduce a variety of multi-stage linear convex (concave) utility functions, such as S-type, inverted S-type, inverted U-shaped utility and their combinations into the consensus decision making model, which aims to measure the consensus level, individuals’tolerance and psychological preferences of all participants in the negotiations; moreover, we introduce resident’s acceptance into our consensus model; Finally, this paper also considers the impact of changes that happens in individuals’ tolerance and the government’s budget on the group consensus level, and proposes the corresponding sensitivity analysis as well.Different from previous studies, on the one hand, the multi-stage utility function is used to express the level of consensus negotiations and DM’s preference; on the other hand, the negotiation cost for reaching the consensus is taken into consideration, so that the model is closer to real negotiation scenarios. In addition, all the models constructed in this paper are presented with linear forms, which greatly improve the efficiency of solving the model.