A Duality Procedure to Elicit Nonlinear Multiattribute Utility Functions

Francisco J. André () and Laura Riesgo

No 06.02, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: The practical implementation of the Multiattribute Utility Theory is limited, partly for the lack of operative methods to elicit the parameters of the Multiattribute Utility Function, particularly when this function is not linear. As a consequence, most studies are restricted to linear specifications, which are easier to estimate and to interpret. We propose an indirect method to elicit the parameters of a nonlinear utility function to be compatible with the actual behaviour of decision makers, rather than with their answers to direct surveys. The idea rests on approaching the parameter estimation problem as a dual of the decision problem and making the observed decisions to be compatible with a rational decision making process.

Keywords: Multiple-Criteria Analysis; Multi-Attribute Utility Function; Simulation; Agriculture. (search for similar items in EconPapers)
JEL-codes: C61 Q12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic and nep-upt
Date: 2006-03
View list of references

Downloads: (external link)
http://www.upo.es/serv/bib/wps/econ0602.pdf First version, 2006 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:pab:wpaper:06.02

Access Statistics for this paper

More papers in Working Papers from Universidad Pablo de Olavide, Department of Economics
Address: Carretera de Utrera km.1, 41013 Sevilla
Contact information at EDIRC.
Series data maintained by Rocío Fernández ().