The ordered weighted average inflation

Abstract

This paper introduces the ordered weighted average inflation (OWAI). The OWAI operator aggregates the information of a set of inflations and provides a range of scenarios from the minimum and the maximum inflation. The advantage of this approach is that it can provide a flexible inflation formula that can be adapted to the specific characteristics of the enterprise, region, state or country. Therefore, the novelty of this operator is that experts can forecast the information and provide optimistic or pessimistic results of the expected average inflation according to the knowledge, aptitude or expectations for the whole country or an event that represents a specific sector, market or industry. The paper develops several extensions by using the induced, heavy and prioritized aggregation operators. The work studies the applicability of the operator to the analysis of Mexican inflation by developing some aggregation systems that consider the average inflation of Mexico.