IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v59y2011i3p764-771.html
   My bibliography  Save this article

One-Switch Independence for Multiattribute Utility Functions

Author

Listed:
  • Ali E. Abbas

    (University of Illinois at Urbana--Champaign, Urbana, Illinois 61820)

  • David E. Bell

    (Harvard Business School, Boston, Massachusetts 02163)

Abstract

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 one-switch property. We argue that it is a natural generalization of utility independence and show how it leads to tractable multiattribute utility functions.

Suggested Citation

  • Ali E. Abbas & David E. Bell, 2011. "One-Switch Independence for Multiattribute Utility Functions," Operations Research, INFORMS, vol. 59(3), pages 764-771, June.
    • Handle: RePEc:inm:oropre:v:59:y:2011:i:3:p:764-771
    DOI: 10.1287/opre.1100.0911
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.1100.0911
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.1100.0911?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter C. Fishburn, 1974. "von Neumann-Morgenstera Utility Functions on Two Attributes," Operations Research, INFORMS, vol. 22(1), pages 35-45, February.
    2. Ali E. Abbas, 2009. "Multiattribute Utility Copulas," Operations Research, INFORMS, vol. 57(6), pages 1367-1383, December.
    3. Craig W. Kirkwood, 1976. "Parametrically Dependent Preferences for Multiattributed Consequences," Operations Research, INFORMS, vol. 24(1), pages 92-103, February.
    4. Ralph L. Keeney & Robin S. Gregory, 2005. "Selecting Attributes to Measure the Achievement of Objectives," Operations Research, INFORMS, vol. 53(1), pages 1-11, February.
    5. David E. Bell, 1988. "One-Switch Utility Functions and a Measure of Risk," Management Science, INFORMS, vol. 34(12), pages 1416-1424, December.
    6. Ali E. Abbas & Ronald A. Howard, 2005. "Attribute Dominance Utility," Decision Analysis, INFORMS, vol. 2(4), pages 185-206, December.
    7. Peter C. Fishburn, 1977. "Approximations of Two-Attribute Utility Functions," Mathematics of Operations Research, INFORMS, vol. 2(1), pages 30-44, February.
    8. David E. Bell, 1979. "Consistent Assessment Procedures Using Conditional Utility Functions," Operations Research, INFORMS, vol. 27(5), pages 1054-1066, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ali E. Abbas & David E. Bell, 2012. "METHODS---One-Switch Conditions for Multiattribute Utility Functions," Operations Research, INFORMS, vol. 60(5), pages 1199-1212, October.
    2. Dionne, Georges & Li, Jingyuan, 2014. "Comparative Ross risk aversion in the presence of mean dependent risks," Journal of Mathematical Economics, Elsevier, vol. 51(C), pages 128-135.
    3. Ali E. Abbas & Zhengwei Sun, 2019. "Archimedean Utility Copulas with Polynomial Generating Functions," Decision Analysis, INFORMS, vol. 16(3), pages 218-237, September.
    4. Ilia Tsetlin & Robert L. Winkler, 2012. "Multiattribute One-Switch Utility," Management Science, INFORMS, vol. 58(3), pages 602-605, March.
    5. Nina Anchugina, 2017. "One-Switch Discount Functions," Papers 1702.02254, arXiv.org.
    6. Kenneth C. Lichtendahl & Raul O. Chao & Samuel E. Bodily, 2012. "Habit Formation from Correlation Aversion," Operations Research, INFORMS, vol. 60(3), pages 625-637, June.
    7. Georges Dionne & Jingyuan Li, 2012. "Comparative Ross Risk Aversion in the Presence of Quadrant Dependent Risks," Cahiers de recherche 1226, CIRPEE.
    8. Ali E. Abbas & Zhengwei Sun, 2015. "Multiattribute Utility Functions Satisfying Mutual Preferential Independence," Operations Research, INFORMS, vol. 63(2), pages 378-393, April.
    9. Andrea C. Hupman & Jay Simon, 2023. "The Legacy of Peter Fishburn: Foundational Work and Lasting Impact," Decision Analysis, INFORMS, vol. 20(1), pages 1-15, March.
    10. Jiehua Xie & Zhengyong Zhou, 2022. "Patchwork Constructions of Multiattribute Utility Functions," Decision Analysis, INFORMS, vol. 19(2), pages 141-169, June.
    11. Ali E. Abbas, 2011. "The Multiattribute Utility Tree," Decision Analysis, INFORMS, vol. 8(3), pages 180-205, September.
    12. Ying He & James S. Dyer & John C. Butler, 2014. "Decomposing a Utility Function Based on Discrete Distribution Independence," Decision Analysis, INFORMS, vol. 11(4), pages 233-249, December.
    13. Chen Wang & Vicki M. Bier, 2013. "Expert Elicitation of Adversary Preferences Using Ordinal Judgments," Operations Research, INFORMS, vol. 61(2), pages 372-385, April.
    14. Navin Kartik & SangMok Lee & Daniel Rappoport, 2022. "Single-Crossing Differences in Convex Environments," Papers 2212.12009, arXiv.org, revised Jun 2023.
    15. Ali E. Abbas & David E. Bell, 2015. "Ordinal One-Switch Utility Functions," Operations Research, INFORMS, vol. 63(6), pages 1411-1419, December.
    16. Ali E. Abbas, 2013. "Utility Copula Functions Matching All Boundary Assessments," Operations Research, INFORMS, vol. 61(2), pages 359-371, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali E. Abbas & David E. Bell, 2012. "METHODS---One-Switch Conditions for Multiattribute Utility Functions," Operations Research, INFORMS, vol. 60(5), pages 1199-1212, October.
    2. Ying He & James S. Dyer & John C. Butler, 2014. "Decomposing a Utility Function Based on Discrete Distribution Independence," Decision Analysis, INFORMS, vol. 11(4), pages 233-249, December.
    3. Ali E. Abbas & David E. Bell, 2015. "Ordinal One-Switch Utility Functions," Operations Research, INFORMS, vol. 63(6), pages 1411-1419, December.
    4. Ali E. Abbas & Zhengwei Sun, 2019. "Archimedean Utility Copulas with Polynomial Generating Functions," Decision Analysis, INFORMS, vol. 16(3), pages 218-237, September.
    5. Ali E. Abbas, 2013. "Utility Copula Functions Matching All Boundary Assessments," Operations Research, INFORMS, vol. 61(2), pages 359-371, April.
    6. Jiehua Xie & Zhengyong Zhou, 2022. "Patchwork Constructions of Multiattribute Utility Functions," Decision Analysis, INFORMS, vol. 19(2), pages 141-169, June.
    7. Ali E. Abbas & Zhengwei Sun, 2015. "Multiattribute Utility Functions Satisfying Mutual Preferential Independence," Operations Research, INFORMS, vol. 63(2), pages 378-393, April.
    8. Beccacece, Francesca & Borgonovo, Emanuele & Buzzard, Greg & Cillo, Alessandra & Zionts, Stanley, 2015. "Elicitation of multiattribute value functions through high dimensional model representations: Monotonicity and interactions," European Journal of Operational Research, Elsevier, vol. 246(2), pages 517-527.
    9. Ali E. Abbas, 2009. "Multiattribute Utility Copulas," Operations Research, INFORMS, vol. 57(6), pages 1367-1383, December.
    10. Ali E. Abbas & Ronald A. Howard, 2005. "Attribute Dominance Utility," Decision Analysis, INFORMS, vol. 2(4), pages 185-206, December.
    11. Francesca Beccacece & Emanuele Borgonovo & Greg Buzzard & Alessandra Cillo & Stanley Zionts, 2013. "Elicitation of Multiattribute Value Functions through High Dimensional Model Representations," Working Papers 495, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    12. Michel Denuit & Louis Eeckhoudt, 2010. "Bivariate Stochastic Dominance and Substitute Risk-(In)dependent Utilities," Decision Analysis, INFORMS, vol. 7(3), pages 302-312, September.
    13. Ilia Tsetlin & Robert L. Winkler, 2006. "On Equivalent Target-Oriented Formulations for Multiattribute Utility," Decision Analysis, INFORMS, vol. 3(2), pages 94-99, June.
    14. Ali E. Abbas, 2011. "The Multiattribute Utility Tree," Decision Analysis, INFORMS, vol. 8(3), pages 180-205, September.
    15. Liesiö, Juuso & Kee, Taeyoung & Malo, Pekka, 2024. "Modeling project interactions in multiattribute portfolio decision analysis: Axiomatic foundations and practical implications," European Journal of Operational Research, Elsevier, vol. 316(3), pages 988-1000.
    16. Abdildin, Yerkin G. & Abbas, Ali E., 2016. "Analysis of decision alternatives of the deep borehole filter restoration problem," Energy, Elsevier, vol. 114(C), pages 1306-1321.
    17. Samuel Kotz & Johan René van Dorp, 2010. "Generalized Diagonal Band Copulas with Two-Sided Generating Densities," Decision Analysis, INFORMS, vol. 7(2), pages 196-214, June.
    18. William B. Haskell & J. George Shanthikumar & Z. Max Shen, 2017. "Aspects of optimization with stochastic dominance," Annals of Operations Research, Springer, vol. 253(1), pages 247-273, June.
    19. Auriel M. V. Fournier & R. Randy Wilson & Jeffrey S. Gleason & Evan M. Adams & Janell M. Brush & Robert J. Cooper & Stephen J. DeMaso & Melanie J. L. Driscoll & Peter C. Frederick & Patrick G. R. Jodi, 2023. "Structured Decision Making to Prioritize Regional Bird Monitoring Needs," Interfaces, INFORMS, vol. 53(3), pages 207-217, May.
    20. Thomas W. Keelin & Bradford W. Powley, 2011. "Quantile-Parameterized Distributions," Decision Analysis, INFORMS, vol. 8(3), pages 206-219, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:59:y:2011:i:3:p:764-771. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.