Ali E. AbbasCambridge University Press, 6/28/2018EAN 9781107150904, ISBN10: 1107150906Hardcover, 480 pages, 25.9 x 18.5 x 3.6 cmLanguage: EnglishMany of the complex problems faced by decision makers involve uncertainty as well as multiple conflicting objectives. This book provides a complete understanding of the types of objective functions that should be used in multiattribute decision making. By using tools such as preference, value, and utility functions, readers will learn state-of-the-art methods to analyze prospects to guide decision making and will develop a process that guarantees a defensible analysis to rationalize choices. Summarizing and distilling classical techniques and providing extensive coverage of recent advances in the field, the author offers practical guidance on how to make good decisions in the face of uncertainty. This text will appeal to graduate students and practitioners alike in systems engineering, operations research, business, management, government, climate change, energy, and healthcare.Part I. Foundations of Preference, Value, and Utility1. Preference, value, and utility2. Foundations of expected utility3. Some flawed methods of decision makingPart II. Deterministic Decisions4. The order rulepreferences for deterministic consequences5. Getting the attributes right6. Preference functions for single attributes7. Preference functions for multiple attributes8. Additive preference functions9. Valuing deterministic consequences – value functionsPart III. Decisions with UncertaintyMulti-attribute Utility Functions Using a Value Measure10. Single-attribute utility function11. Multi-attribute utility functions using preference and value functions12. Utility functions over additive preference or value functionsPart IV. Decisions with UncertaintyProperties of Single-Attribute Utility Functions13. The role of the utility function in valuing uncertain deals14. The risk aversion function15. Scale transformations applied to lottery outcomes16. The invariant transformation of a utility function17. Valuing changes in investment opportunities18. One-switch utility functions19. Utility transversality20. Multi-attribute risk aversionPart V. Decisions with UncertaintyMulti-attribute Utility Functions without Preference or Value Functions21. Attribute dominance utility22. The two-attribute utility tree23. Independence conditions for two attributes24. The multi-attribute utility tree25. Independence conditions for three or more attributes26. Higher-order independence conditions27. One-switch utility independencePart VI. Utility Copula Formulations28. Multi-attribute utility copulas29. Archimedean utility copulas30. Assessing Archimedean utility copulas31. Utility copula functions matching all boundary assessments32. Bidirectional one-switch ordinal copulas33. Reflections of what we have learned.
