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Multiattribute Utility Theory (MAUT)

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Multiple Criteria Decision Analysis

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 233))

Abstract

In this chapter, we provide a review of multiattribute utility theory. We begin with a brief review of single-attribute preference theory, and explore preference representations that measure a decision maker’s strength of preference and her preferences for risky alternatives. We emphasize the distinction between these two cases, and then explore the implications for multiattribute preference models. We describe the multiattribute decision problem, and discuss the conditions that allow a multiattribute preference function to be decomposed into additive and multiplicative forms under conditions of certainty and risk. The relationships among these distinct types of multiattribute preference functions are then explored, and issues related to their assessment and applications are surveyed.

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Notes

  1. 1.

    The classic book Decisions with Multiple Objectives by R. L. Keeney and H. Raiffa was originally published by Wiley in 1976. The Cambridge University Press version was published in 1993.

  2. 2.

    “The important addition since 1976 concerns value functions that address strength of preference between pairs of consequences (see [4, 13]).” A quote from the Preface to the Cambridge University Press Edition, R. L. Keeney and H. Raiffa, Decisions with Multiple Objectives, Cambridge University Press, 1993.

  3. 3.

    Note that the \( {\overset{o}{v}}_i \) are called partial value functions by Bouyssou and Pirlot in Chap. 4 of this volume.

  4. 4.

    Specifically, we assume restricted solvability from below, an Archimedian property, at least three attributes are essential, and that the attributes are bounded from below. If n = 2, we assume that the two attributes are preferentially independent of one another and that the Thomsen condition is satisfied (see Krantz et al. [35] and the discussion by Bouyssou and Pirlot in Chap. 4 of this volume).

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Authors and Affiliations

  1. Department of Information, Risk and Operations Management, The McCombs School of Business, The University of Texas at Austin, Austin, TX, 78712, USA

    James S. Dyer

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  1. James S. Dyer
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Correspondence to James S. Dyer .

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Editors and Affiliations

  1. Department of Economics and Business; Portsmouth Business School, Operations & Systems Management, University of Catania; University of Portsmouth, Catania; Portsmouth, Italy

    Salvatore Greco

  2. Department of Management Science, Lancaster University, Lancaster, United Kingdom

    Matthias Ehrgott

  3. Universidade de Lisboa, CEG-IST, Instituto Superior Técnico, Lisboa, Portugal

    José Rui Figueira

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Dyer, J.S. (2016). Multiattribute Utility Theory (MAUT). In: Greco, S., Ehrgott, M., Figueira, J. (eds) Multiple Criteria Decision Analysis. International Series in Operations Research & Management Science, vol 233. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-3094-4_8

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