Finding Risk Aware, Equitably Efficient Benefit Allocations

This paper focuses on problems in which decisions lead to benefit allocations across multiple entities and the decision maker has fairness concerns alongside efficiency concerns. Assuming that the benefits are uncertain, we propose a method for achieving equitably efficient solutions for these multicriteria problems in the context of risk-averse behavior. To accomplish this, we introduce a methodology that combines two distinct concepts: Conditional Value-at-Risk (CVaR) and Cumulative Ordering Maps (COMs). CVaR functions as a risk assessment metric, providing insight into the risk associated with uncertainty. Simultaneously, COMs offer a useful tool for finding equitable efficient allocations across multiple entities. By integrating these two concepts, we aim to establish a framework for equitable, risk-aware decision-making.