A Duality Procedure to Elicit Nonlinear Multiattribute Utility Functions
AbstractThe practical implementation of the Multiattribute Utility Theory is limited, partly for the lack of operative methods to elicit the parameters of the Multiattribute Utility Function, particularly when this function is not linear. As a consequence, most studies are restricted to linear specifications, which are easier to estimate and to interpret. We propose an indirect method to elicit the parameters of a nonlinear utility function to be compatible with the actual behaviour of decision makers, rather than with their answers to direct surveys. The idea rests on approaching the parameter estimation problem as a dual of the decision problem and making the observed decisions to be compatible with a rational decision making process.
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Bibliographic InfoPaper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 06.02.
Length: 28 pages
Date of creation: Mar 2006
Date of revision:
Multiple-Criteria Analysis; Multi-Attribute Utility Function; Simulation; Agriculture.;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-12 (All new papers)
- NEP-MIC-2006-03-13 (Microeconomics)
- NEP-UPT-2006-03-13 (Utility Models & Prospect Theory)
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