Exponential utility functions aid upstream decision making

2015 ◽  
Vol 27 ◽  
pp. 1482-1494 ◽  
Author(s):  
David A. Wood ◽  
Rassoul Khosravanian
Keyword(s):  
Decision Making ◽  
Utility Functions ◽  
Exponential Utility

scholarly journals Estimation of Approximate Values of the Optimum Points on Efficient Portfolios Curve

2007 ◽  
Vol 6 (1) ◽  
pp. 99-106
Author(s):  
Henryk Kowgier
Keyword(s):  
Utility Functions ◽  
Exponential Utility ◽  
Efficient Portfolios

Estimation of Approximate Values of the Optimum Points on Efficient Portfolios Curve In the paper a method is found for estimating approximate optimum points on efficient portfolios curve (risk-profit) that are connected with exponential utility functions being very frequently preferred in practice by investors.

Greener Transportation Infrastructure

2011 ◽  
pp. 394-421
Author(s):  
Jean-Christophe Fann ◽  
Jasenka Rakas
Keyword(s):  
Decision Making ◽  
Environmental Impact ◽  
Environmental Sustainability ◽  
Implementation Strategy ◽  
Utility Functions ◽  
Multi Criteria Decision Making ◽  
Capacity Enhancement ◽  
Environmental Impact Assessments ◽  
Definition Of ◽  
Evaluation Parameters

The presented methodology has two fundamental goals: first, to foster greener design practices among airport managers, planners, and designers, and second, to establish a dynamic dialogue between all airport stakeholders, while overcoming the shortcomings of traditional environmental impact assessments and thus ensuring capacity enhancement. The innovative aspects of the methodology are the combination of a flexible implementation strategy, the use of Multi-Criteria Decision Making (MCDM) with cost and utility functions, and a structured definition of environmental sustainability with customized evaluation parameters.

scholarly journals Utility functions of equivalent form and the effect of parameter changes on optimum decision making

2006 ◽  
Vol 34 (3) ◽  
pp. 401-414 ◽  
Author(s):  
Harald L. Battermann ◽  
Udo Broll ◽  
Jack E. Wahl
Keyword(s):  
Decision Making ◽  
Equivalent Form ◽  
Utility Functions ◽  
Optimum Decision

Is Additive Utility Function Always a Sufficient Method in the Project Prioritization Process? Bridge Management Perspective

2019 ◽  
Vol 2673 (10) ◽  
pp. 284-294 ◽  
Author(s):  
Onur Kalan ◽  
Abdullah Kurkcu ◽  
Kaan Ozbay
Keyword(s):  
Decision Making ◽  
Utility Theory ◽  
Functional Form ◽  
Utility Functions ◽  
Management Systems ◽  
Decision Making Process ◽  
Bridge Management ◽  
Policy Makers ◽  
Hypothetical Scenario ◽  
Multi Attribute Utility Theory

The prioritization of maintenance activities in bridges has great importance in bridge asset management systems as they are mentioned in MAP-21. One of the most commonly used prioritization methodologies in bridge management systems is multi-attribute utility theory process. In this study, the problem is defined as using the additive functional form in this process without testing additive independence (AI) assumption, which is one of the properties of multi-attribute utility theory. This study aims to emphasize the strength of the use of multiplicative functional forms when the multiplicative form is proven to be more appropriate by AI assumption test. To demonstrate this vital point, mathematical expressions are derived for the feasible regions of indifference curves. Then, the optimum region for both additive and multiplicative approaches are calculated using these analytical expressions to demonstrate the difference between the two relation to maximizing utility. This comparison is aimed at preventing suboptimal decisions because of the use of the additive approach when the multiplicative approach is more representative of the actual decision-making process. The relevance of this claim is also demonstrated using a simple hypothetical scenario. Findings of the paper provide valuable insights to decision makers and policy makers about the importance of choosing the most appropriate functional form for utility functions employed in a prioritization. We hope that policy makers at state departments of transportation will use the comparative analysis of the effect of utility functions on the final project selection process presented in this paper as part of their routine decision-making process.

Multiple Objective Design Optimization by Estimating Local Utility Functions

1994 ◽  
Author(s):  
Jian-Bo Yang ◽  
Pratyush Sen
Keyword(s):  
Decision Making ◽  
Learning Process ◽  
Utility Functions ◽  
Multiple Objective ◽  
Preference Learning ◽  
Compromise Solution ◽  
Design Synthesis ◽  
Trade Off ◽  
Multiple Objective Decision Making ◽  
Local Utility Functions

Abstract This paper presents the application of an interactive multiple objective decision making (MODM) procedure to design synthesis. This procedure is composed of an interactive step trade-off method (ISTM) and the estimation of local utility functions. The ISTM method is used as a preference learning process to assist a designer (decision maker or DM) in generating a representative sub-set of efficient designs (solutions). In this learning process, the DM is expected to compare the generated solutions in a pairwise manner to express his preferences. A set of additive local utility functions are then estimated to help the DM search for his best compromise solution. A multiple objective design synthesis problem is examined using the procedure.

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