IDEAS home Printed from https://ideas.repec.org/a/wly/riskan/v39y2019i1p244-256.html
   My bibliography  Save this article

Preference Functions for Spatial Risk Analysis

Author

Listed:
  • L. Robin Keller
  • Jay Simon

Abstract

When outcomes are defined over a geographic region, measures of spatial risk regarding these outcomes can be more complex than traditional measures of risk. One of the main challenges is the need for a cardinal preference function that incorporates the spatial nature of the outcomes. We explore preference conditions that will yield the existence of spatial measurable value and utility functions, and discuss their application to spatial risk analysis. We also present a simple example on household freshwater usage across regions to demonstrate how such functions can be assessed and applied.

Suggested Citation

  • L. Robin Keller & Jay Simon, 2019. "Preference Functions for Spatial Risk Analysis," Risk Analysis, John Wiley & Sons, vol. 39(1), pages 244-256, January.
    • Handle: RePEc:wly:riskan:v:39:y:2019:i:1:p:244-256
    DOI: 10.1111/risa.12892
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/risa.12892
    Download Restriction: no
    File URL: https://libkey.io/10.1111/risa.12892?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. Yang Zhou & Ning Li & Wenxiang Wu & Jidong Wu & Peijun Shi, 2014. "Local Spatial and Temporal Factors Influencing Population and Societal Vulnerability to Natural Disasters," Risk Analysis, John Wiley & Sons, vol. 34(4), pages 614-639, April.
    2. James S. Dyer & Rakesh K. Sarin, 1982. "Relative Risk Aversion," Management Science, INFORMS, vol. 28(8), pages 875-886, August.
    3. W. M. Gorman, 1968. "The Structure of Utility Functions," Review of Economic Studies, Oxford University Press, vol. 35(4), pages 367-390.
    4. Jay Simon & Craig W. Kirkwood & L. Robin Keller, 2014. "Decision Analysis with Geographically Varying Outcomes: Preference Models and Illustrative Applications," Operations Research, INFORMS, vol. 62(1), pages 182-194, February.
    5. Jason R. W. Merrick & Gregory S. Parnell & Jamison Barnett & Margot Garcia, 2005. "A Multiple-Objective Decision Analysis of Stakeholder Values to Identify Watershed Improvement Needs," Decision Analysis, INFORMS, vol. 2(1), pages 44-57, March.
    6. James S. Dyer & Rakesh K. Sarin, 1979. "Measurable Multiattribute Value Functions," Operations Research, INFORMS, vol. 27(4), pages 810-822, August.
    7. Ferretti, Valentina & Montibeller, Gilberto, 2016. "Key challenges and meta-choices in designing and applying multi-criteria spatial decision support systems," LSE Research Online Documents on Economics 65368, London School of Economics and Political Science, LSE Library.
    8. Peter H. Farquhar, 1975. "A Fractional Hypercube Decomposition Theorem for Multiattribute Utility Functions," Operations Research, INFORMS, vol. 23(5), pages 941-967, October.
    9. Francisco J. Zagmutt & Mark A. Schoenbaum & Ashley E. Hill, 2016. "The Impact of Population, Contact, and Spatial Heterogeneity on Epidemic Model Predictions," Risk Analysis, John Wiley & Sons, vol. 36(5), pages 939-953, May.
    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. Jay Simon, 2020. "Weight Approximation for Spatial Outcomes," Sustainability, MDPI, vol. 12(14), pages 1-18, July.
    2. Valentina Ferretti & Gilberto Montibeller, 2019. "An Integrated Framework for Environmental Multi‐Impact Spatial Risk Analysis," Risk Analysis, John Wiley & Sons, vol. 39(1), pages 257-273, January.
    3. 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.
    4. Nikolaos Argyris & Valentina Ferretti & Simon French & Seth Guikema & Gilberto Montibeller, 2019. "Advances in Spatial Risk Analysis," Risk Analysis, John Wiley & Sons, vol. 39(1), pages 1-8, January.
    5. Bana e Costa, Carlos A. & Oliveira, Mónica D. & Rodrigues, Teresa C. & Vieira, Ana C.L., 2023. "Desirability–doability group judgment framework for the collaborative multicriteria evaluation of public policies," LSE Research Online Documents on Economics 118192, London School of Economics and Political Science, LSE Library.

    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. 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.
    2. Yonatan Aumann, 2015. "A conceptual foundation for the theory of risk aversion," Discussion Paper Series dp686, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    3. Jay Simon & Francois Melese, 2011. "A Multiattribute Sealed-Bid Procurement Auction with Multiple Budgets for Government Vendor Selection," Decision Analysis, INFORMS, vol. 8(3), pages 170-179, September.
    4. Harju, Mikko & Liesiö, Juuso & Virtanen, Kai, 2019. "Spatial multi-attribute decision analysis: Axiomatic foundations and incomplete preference information," European Journal of Operational Research, Elsevier, vol. 275(1), pages 167-181.
    5. Ali E. Abbas & Zhengwei Sun, 2015. "Multiattribute Utility Functions Satisfying Mutual Preferential Independence," Operations Research, INFORMS, vol. 63(2), pages 378-393, April.
    6. Ali E. Abbas & Zhengwei Sun, 2019. "Archimedean Utility Copulas with Polynomial Generating Functions," Decision Analysis, INFORMS, vol. 16(3), pages 218-237, September.
    7. Jidong Wu & Ying Li & Ning Li & Peijun Shi, 2018. "Development of an Asset Value Map for Disaster Risk Assessment in China by Spatial Disaggregation Using Ancillary Remote Sensing Data," Risk Analysis, John Wiley & Sons, vol. 38(1), pages 17-30, January.
    8. Carland, Corinne & Goentzel, Jarrod & Montibeller, Gilberto, 2018. "Modeling the values of private sector agents in multi-echelon humanitarian supply chains," European Journal of Operational Research, Elsevier, vol. 269(2), pages 532-543.
    9. Peter Reichert & Klemens Niederberger & Peter Rey & Urs Helg & Susanne Haertel-Borer, 2019. "The need for unconventional value aggregation techniques: experiences from eliciting stakeholder preferences in environmental management," EURO Journal on Decision Processes, Springer;EURO - The Association of European Operational Research Societies, vol. 7(3), pages 197-219, November.
    10. Jay Simon, 2016. "On the existence of altruistic value and utility functions," Theory and Decision, Springer, vol. 81(3), pages 371-391, September.
    11. James E. Smith & James S. Dyer, 2021. "On (Measurable) Multiattribute Value Functions: An Expository Argument," Decision Analysis, INFORMS, vol. 18(4), pages 247-256, December.
    12. Ali E. Abbas, 2013. "Utility Copula Functions Matching All Boundary Assessments," Operations Research, INFORMS, vol. 61(2), pages 359-371, April.
    13. Jay Simon, 2020. "Weight Approximation for Spatial Outcomes," Sustainability, MDPI, vol. 12(14), pages 1-18, July.
    14. Tianjun Feng & L. Robin Keller, 2006. "A Multiple-Objective Decision Analysis for Terrorism Protection: Potassium Iodide Distribution in Nuclear Incidents," Decision Analysis, INFORMS, vol. 3(2), pages 76-93, June.
    15. Sriwastava, Ambuj & Reichert, Peter, 2023. "Reducing sample size requirements by extending discrete choice experiments to indifference elicitation," Journal of choice modelling, Elsevier, vol. 48(C).
    16. Loomes, Graham, 1995. "The myth of the HYE," Journal of Health Economics, Elsevier, vol. 14(1), pages 1-7, May.
    17. Ralph L. Keeney, 2002. "Common Mistakes in Making Value Trade-Offs," Operations Research, INFORMS, vol. 50(6), pages 935-945, December.
    18. William K. Klimack & Jack M. Kloeber & Kenneth W. Bauer & Mark E. Oxley, 2015. "An Empirical Examination of Multiple Objective Risk Attitudes," Decision Analysis, INFORMS, vol. 12(2), pages 96-103, June.
    19. Schuwirth, N. & Reichert, P. & Lienert, J., 2012. "Methodological aspects of multi-criteria decision analysis for policy support: A case study on pharmaceutical removal from hospital wastewater," European Journal of Operational Research, Elsevier, vol. 220(2), pages 472-483.
    20. Rios Insua, D. & Alfaro, C. & Gomez, J. & Hernandez-Coronado, P. & Bernal, F., 2018. "A framework for risk management decisions in aviation safety at state level," Reliability Engineering and System Safety, Elsevier, vol. 179(C), pages 74-82.

    More about this item

    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:wly:riskan:v:39:y:2019:i:1:p:244-256. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1539-6924 .

    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.