Abstract
Two fundamentally different measurement approaches are used to model multiatribute preferences. The first, based on expected utility theory, uses preferences among gambles to construct a utility function, u, over multiattribute outcomes. The second, founded on difference measurement, asks for judgments about strength of preference to derive a value function, v. Our purposes are threefold: to clarify possible theoretical relationships between u and v; to demonstrate behavioral differences between u and v; and to discuss the usefulness of a u, v distinction for interpretation and application. Both the theory of functional equations and measurement theory uniqueness theorems provide closed form functional relationships among the four (additive and/or multiplicative) decomposed utility and value functions. Fischer (1977) provides the data to empirically examine relationships between u and v.
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