Multiattribute One-Switch Utility

The one-switch property states that the preference between any two lotteries switches at most once as wealth increases. Working within the expected utility framework, we extend the one-switch notion to the multiattribute case and identify the families of multiattribute utility functions that are one-switch. We then show that all multiattribute one-switch utility functions can be approximated by a sum of two multiattribute exponential utilities (sumex utility). Finally, we discuss how the one-switch property, when appropriate, can simplify the assessment of multiattribute utility. This paper was accepted by Peter Wakker, decision analysis.

• 저널Management Science · 58(3) · 602–605
• 토픽Auction Theory and Applications · Management Science and Operations Research
• DOI10.1287/mnsc.1100.1299
• 저자Ilia Tsetlin, Robert L. Winkler