Utility Independence and Preferences for Multiattributed Consequences

This paper introduces and defines the concept of utility independence, and derives general expressions for simplifying the assessment of multiattribute utility functions, given that certain utility independence assumptions hold. These results are more general than the commonly used additive utility function, which is shown to be a special case. Finally, the paper discusses the relevance of this work as an approximation technique when requisite assumptions are not satisfied.

Duke Scholars

Author Ralph L. Keeney Fuqua School of Business