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Interdependent Criteria in Utility Analysis

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Multiple Criteria Problem Solving

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 155))

Abstract

This paper examines decision problems where the evaluative criteria are interdependent. After a brief study of interaction effects in the statistical analysis of multifactor experiments, a classification of interactions is developed for multiple criteria decision problems. The classification includes artificial, ordinal, configural, and holistic interactions. Some interactions are removable by transforming the response scale or restructuring the factors, while other interactions are not removable and must be considered explicitly. The interaction effects in various nonadditive utility models are discussed, and the method of fractional hypercubes is used to interpret the structural forms of these models.

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  1. Northwestern University, Evanston, Illinois, USA

    Peter H. Farquhar

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  1. Peter H. Farquhar
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  1. School of Management, State University of New York at Buffalo, Buffalo, N.Y., 14214, USA

    Stanley Zionts

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Farquhar, P.H. (1978). Interdependent Criteria in Utility Analysis. In: Zionts, S. (eds) Multiple Criteria Problem Solving. Lecture Notes in Economics and Mathematical Systems, vol 155. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-46368-6_8

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  • DOI: https://doi.org/10.1007/978-3-642-46368-6_8

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-08661-1

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