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Indirect Elicitation of Non-Linear Multiattribute Utility Functions. A Dual Procedure Combined with DEA

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  • Francisco J. André

    (Department of Economics, Universidad Pablo de Olavide)

Abstract

In this paper, we propose an indirect method to elicit nonlinear multiattribute utility functions which is based on duality results. The idea is to obtain a utility function which is compatible with the observed behaviour of decision makers. The paper builds on a previous work by André and Riesgo (A non-interactive method to elicit non-linear multiattribute utility functions. Theory and Application to Agricultural Economics. European Journal of Operational Research. In press) but it eliminates an important shortcoming, the necessity to estimate the efficient set, by using a DEA-like approach.

Suggested Citation

  • Francisco J. André, 2007. "Indirect Elicitation of Non-Linear Multiattribute Utility Functions. A Dual Procedure Combined with DEA," Working Papers 07.02, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:07.02
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    References listed on IDEAS

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    8. Ralph L. Keeney, 1974. "Multiplicative Utility Functions," Operations Research, INFORMS, vol. 22(1), pages 22-34, February.
    9. P Linares & C Romero, 2000. "A multiple criteria decision making approach for electricity planning in Spain: economic versus environmental objectives," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(6), pages 736-743, June.
    10. Canbolat, Yavuz Burak & Chelst, Kenneth & Garg, Nitin, 2007. "Combining decision tree and MAUT for selecting a country for a global manufacturing facility," Omega, Elsevier, vol. 35(3), pages 312-325, June.
    11. Tiwari, D. N. & Loof, R. & Paudyal, G. N., 1999. "Environmental-economic decision-making in lowland irrigated agriculture using multi-criteria analysis techniques," Agricultural Systems, Elsevier, vol. 60(2), pages 99-112, May.
    12. Brugha, Cathal M., 2004. "Phased multicriteria preference finding," European Journal of Operational Research, Elsevier, vol. 158(2), pages 308-316, October.
    13. Gomez-Limon, J. A. & Berbel, J., 2000. "Multicriteria analysis of derived water demand functions: a Spanish case study," Agricultural Systems, Elsevier, vol. 63(1), pages 49-72, January.
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    Cited by:

    1. Pérez-Blanco, C. D & Standardi, G., 2019. "Farm waters run deep: a coupled positive multi-attribute utility programming and computable general equilibrium model to assess the economy-wide impacts of water buyback," Agricultural Water Management, Elsevier, vol. 213(C), pages 336-351.
    2. Gómez-Limón, José A. & Gutiérrez-Martín, Carlos & Riesgo, Laura, 2016. "Modeling at farm level: Positive Multi-Attribute Utility Programming," Omega, Elsevier, vol. 65(C), pages 17-27.
    3. Kanellopoulos, A. & Gerdessen, J.C. & Claassen, G.D.H., 2015. "Compromise programming: Non-interactive calibration of utility-based metrics," European Journal of Operational Research, Elsevier, vol. 244(2), pages 519-524.
    4. André, Francisco J. & Herrero, Inés & Riesgo, Laura, 2010. "A modified DEA model to estimate the importance of objectives with an application to agricultural economics," Omega, Elsevier, vol. 38(5), pages 371-382, October.
    5. Odeck, James, 2009. "Statistical precision of DEA and Malmquist indices: A bootstrap application to Norwegian grain producers," Omega, Elsevier, vol. 37(5), pages 1007-1017, October.
    6. Hatami-Marbini, Adel & Tavana, Madjid, 2011. "An extension of the Electre I method for group decision-making under a fuzzy environment," Omega, Elsevier, vol. 39(4), pages 373-386, August.
    7. Hinojosa, M.A. & Mármol, A.M., 2011. "Axial solutions for multiple objective linear problems. An application to target setting in DEA models with preferences," Omega, Elsevier, vol. 39(2), pages 159-167, April.
    8. Kourtesi, Sofia & De Witte, Kristof & Polymeros, Apostolos, 2016. "Technical Efficiency in the Agricultural Sector - Evidence from a Conditional Quantile-Based Approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 17(2), June.

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    More about this item

    Keywords

    MultiCriteria Decision Making; Multi-Attribute Utility Function; Duality; DEA.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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