On a Class of One-Switch Multiattribute Utility Functions

On a Class of One-Switch Multiattribute Utility Functions

Several authors have presented methods to assess and derive the functional form of a single-attribute utility function based on the change in valuation of a lottery as the decision maker’s wealth increases (Abbas [1], Abbas and Aczél [2], Bell [7], Pfanzagl [9]). Bell [7] introduced and developed the idea of characterizing a utility function based on the maximum number of switches that may occu...

One-Switch Independence for Multiattribute Utility Functions

Assessment of multiattribute utility functions is significantly simplified if it is possible to decompose the function into more manageable pieces. Utility independence is a powerful property that serves well for this purpose, but if it is not appropriate in a given situation, what options does the analyst have? We review some possibilities and propose a new independence assumption based on the...

Multiattribute One-Switch Utility

METHODS—One-Switch Conditions for Multiattribute Utility Functions

Full terms and conditions of use:

A Class of Multiattribute Utility Functions

A function u(z) is a utility function if u′(z) ≥ 0. It is called risk averse if we also have u′′(z) ≤ 0. Some authors, however, require that u(i)(z) ≥ 0 if i is odd and u(i)(z) ≤ 0 if i is even. The notion of a multiattribute utility function can be defined by requiring that it is increasing in each variable and concave as an s-variate function. A stronger condition, similar to the one in case ...