On a Class of One-Switch Multiattribute Utility Functions
نویسنده
چکیده
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 occur between any two lotteries as the decision maker’s wealth increases. In particular, if preferences between the two lotteries can change, but can change only once, as we increase z, then the decision maker is said to have a one-switch utility function. Abbas and Bell [4] showed that a one-switch utility function, U , must satisfy the system of functional equations
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One-Switch Independence for Multiattribute Utility Functions
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