Article Abstract:
Multiattribute risk linearity is examined in the context of multiattribute utility models. In such models, mutual utility independence is assumed and the multiattribute utility function is either additive or multiplicative. In the absence of such assumptions, however, the risk attitude for each attribute is dependent upon the amounts of the other attributes. In this case, multiattribute risk linearity is a condition on such dependence that leads to alogarithmic multiattribute utility function. This function may be constructed through assessment processes simmilar to those used for the determination of multiplicative multiattribute utility functions in that they require the same number of indifference assessments.
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Article Abstract:
Two kinds of decision models, a single variable and a multivariable one, can be used to portray social preferences for equity and negative social attitudes towards inequity. Both of these models focus on trade-offs in valuing the cost-benefit of equitable distributors, as opposed to models that measure risk or difference preferences. The models and methodology explained are also useful when attempting to assess group value functions prior to evaluating public policies.
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Article Abstract:
The organization of objectives in hierarchical structures is helpful in the construction of cost-benefit and multiattribute utility models. An objectives hierarchy can be used to determine value functions that may be used to represent tradeoffs between objectives. Nonadditive models to explore tradeoffs issues that other models do not include are examined. These structured models may be be applied by procedures similar to those used in other prescriptive models.
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