From mean and median income to the most adequateway of taking inequality into account

© Springer International Publishing Switzerland 2015. How can we compare the incomes of two different countries or regions? At first glance, it is sufficient to compare the mean incomes, but this is known to be not a very adequate comparison: according to this criterion, a very poor country with a f...

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Main Authors: Kreinovich V., Nguyen H., Ouncharoen R.
Format: Article
Published: Springer Verlag 2015
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Online Access:http://www.scopus.com/inward/record.url?partnerID=HzOxMe3b&scp=84919344086&origin=inward
http://cmuir.cmu.ac.th/handle/6653943832/38835
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Institution: Chiang Mai University
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spelling th-cmuir.6653943832-388352015-06-16T07:54:21Z From mean and median income to the most adequateway of taking inequality into account Kreinovich V. Nguyen H. Nguyen H. Ouncharoen R. Artificial Intelligence © Springer International Publishing Switzerland 2015. How can we compare the incomes of two different countries or regions? At first glance, it is sufficient to compare the mean incomes, but this is known to be not a very adequate comparison: according to this criterion, a very poor country with a few super-rich people may appear to be in good economic shape. A more adequate description of economy is the median income. However, the median is also not always fully adequate: e.g., raising the income of very poor people clearly improves the overall economy but does not change the median. In this paper, we use known techniques from group decision making—namely, Nash’s bargaining solution—to come up with the most adequate measure of “average” income: geometric mean. On several examples, we illustrate how this measure works. 2015-06-16T07:54:21Z 2015-06-16T07:54:21Z 2015-01-01 Article 1860949X 2-s2.0-84919344086 10.1007/978-3-319-13449-9_5 http://www.scopus.com/inward/record.url?partnerID=HzOxMe3b&scp=84919344086&origin=inward http://cmuir.cmu.ac.th/handle/6653943832/38835 Springer Verlag
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
topic Artificial Intelligence
spellingShingle Artificial Intelligence
Kreinovich V.
Nguyen H.
Nguyen H.
Ouncharoen R.
From mean and median income to the most adequateway of taking inequality into account
description © Springer International Publishing Switzerland 2015. How can we compare the incomes of two different countries or regions? At first glance, it is sufficient to compare the mean incomes, but this is known to be not a very adequate comparison: according to this criterion, a very poor country with a few super-rich people may appear to be in good economic shape. A more adequate description of economy is the median income. However, the median is also not always fully adequate: e.g., raising the income of very poor people clearly improves the overall economy but does not change the median. In this paper, we use known techniques from group decision making—namely, Nash’s bargaining solution—to come up with the most adequate measure of “average” income: geometric mean. On several examples, we illustrate how this measure works.
format Article
author Kreinovich V.
Nguyen H.
Nguyen H.
Ouncharoen R.
author_facet Kreinovich V.
Nguyen H.
Nguyen H.
Ouncharoen R.
author_sort Kreinovich V.
title From mean and median income to the most adequateway of taking inequality into account
title_short From mean and median income to the most adequateway of taking inequality into account
title_full From mean and median income to the most adequateway of taking inequality into account
title_fullStr From mean and median income to the most adequateway of taking inequality into account
title_full_unstemmed From mean and median income to the most adequateway of taking inequality into account
title_sort from mean and median income to the most adequateway of taking inequality into account
publisher Springer Verlag
publishDate 2015
url http://www.scopus.com/inward/record.url?partnerID=HzOxMe3b&scp=84919344086&origin=inward
http://cmuir.cmu.ac.th/handle/6653943832/38835
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