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Indirect elicitation of non-linear multi-attribute utility functions. A dual procedure combined with DEA

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André, Francisco J.

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Abstract

This paper proposes a non-interactive method to elicit non-linear multi-attribute utility functions which is based on duality results. The idea is to obtain a utility function which is compatible with the observed behavior of decision makers. The paper builds on a previous work by André and Riesgo [A non-interactive method to elicit non-linear multi-attribute utility functions. Theory and application to agricultural economics. European Journal of Operational Research 2008;181:793-807] but it eliminates an important shortcoming: the necessity to have an analytical expression of the efficient set or an estimation of it. The alternative approach presented in this paper consists in using a method of projection onto the true efficient set, based on data envelopment analysis (DEA). In a simulation exercise we check the ability of the method to recover true preference parameters in the presence of errors made by decision makers.

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Article provided by Elsevier in its journal Omega.

Volume (Year): 37 (2009)
Issue (Month): 4 (August)
Pages: 883-895
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Handle: RePEc:eee:jomega:v:37:y:2009:i:4:p:883-895

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Related research
Keywords: Multi-criteria Decision making Data envelopment analysis (DEA);

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References listed on IDEAS
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  1. Johri, Pravin K., 1994. "Derivation of duality in mathematical programming and optimization theory," European Journal of Operational Research, Elsevier, vol. 73(3), pages 547-554, March. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Sumpsi, JoseMaria & Amador, Francisco & Romero, Carlos, 1997. "On farmers' objectives: A multi-criteria approach," European Journal of Operational Research, Elsevier, vol. 96(1), pages 64-71, January. [Downloadable!] (restricted)
  4. Johri, Pravin K., 1993. "Implied constraints and a unified theory of duality in linear and nonlinear programming," European Journal of Operational Research, Elsevier, vol. 71(1), pages 61-69, November. [Downloadable!] (restricted)
  5. Brugha, Cathal M., 2004. "Phased multicriteria preference finding," European Journal of Operational Research, Elsevier, vol. 158(2), pages 308-316, October. [Downloadable!] (restricted)
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