Multiattribute risk linearity
Article Abstract:
Multiattribute risk linearity is examined in the context of multiattribute utility models. In such models, mutual utility independence is assumed and the multiattribute utility function is either additive or multiplicative. In the absence of such assumptions, however, the risk attitude for each attribute is dependent upon the amounts of the other attributes. In this case, multiattribute risk linearity is a condition on such dependence that leads to alogarithmic multiattribute utility function. This function may be constructed through assessment processes simmilar to those used for the determination of multiplicative multiattribute utility functions in that they require the same number of indifference assessments.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Decision analysis models for social attitudes toward inequity
Article Abstract:
Two kinds of decision models, a single variable and a multivariable one, can be used to portray social preferences for equity and negative social attitudes towards inequity. Both of these models focus on trade-offs in valuing the cost-benefit of equitable distributors, as opposed to models that measure risk or difference preferences. The models and methodology explained are also useful when attempting to assess group value functions prior to evaluating public policies.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1985
User Contributions:
Comment about this article or add new information about this topic:
Models of tradeoffs in a hierarchical structure of objectives
Article Abstract:
The organization of objectives in hierarchical structures is helpful in the construction of cost-benefit and multiattribute utility models. An objectives hierarchy can be used to determine value functions that may be used to represent tradeoffs between objectives. Nonadditive models to explore tradeoffs issues that other models do not include are examined. These structured models may be be applied by procedures similar to those used in other prescriptive models.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Most software makers, led by Microsoft, to post strong results for latest quarter. Prime Computer is expected to unveil new design software to boost its business
- Abstracts: IBM reports higher profits, but stock slips. IBM Credit unit posts 9.5% gain in annual profit
- Abstracts: Apple chief shows still waters can run deep- and angry; barbs fly in a rare interview held to introduce a line of low-priced computers
- Abstracts: Intelligent Electronics skids 34% as downgrade by Merrill comes in wake of resignation row
- Abstracts: IMA revises SMA 1C, standards of ethical conduct. Ethical obligations of management accountants