IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v30y1984i11p1283-1300.html
   My bibliography  Save this article

State of the Art---Utility Assessment Methods

Author

Listed:
  • Peter H. Farquhar

    (Graduate School of Industrial Administration, Carnegie-Mellon University, Pittsburgh, Pennsylvania 15213)

Abstract

This paper is a comprehensive study of methods for assessing unidimensional expected utility functions. The paper describes the utility assessment process in decision analysis and then reviews problem formulation, sources of bias in preference judgments, and the analysis of risk attitudes. Two dozen utility assessment methods of which half appear for the first time are critically examined. These methods are grouped into preference comparison methods, probability equivalence methods, value equivalence methods, certainty equivalence methods, hybrid methods, paired-gamble methods, and other approaches. The paper emphasizes the nature of judgmental biases in comparing different assessment procedures. Since most multiattribute utility functions are decomposed into single-attribute functions, this study should facilitate such applications. The paper concludes with several directions for further developmental, empirical, and applied research.

Suggested Citation

  • Peter H. Farquhar, 1984. "State of the Art---Utility Assessment Methods," Management Science, INFORMS, vol. 30(11), pages 1283-1300, November.
  • Handle: RePEc:inm:ormnsc:v:30:y:1984:i:11:p:1283-1300
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.30.11.1283
    Download Restriction: no

    More about this item

    Keywords

    utility; preference; estimation; decision analysis;

    Statistics

    Access and download statistics

    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:ormnsc:v:30:y:1984:i:11:p:1283-1300. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.