Multiobjective decision making — utility theoretic approach —

Abstract

The purpose of this survey paper is to describe recent advances in multiattribute utility theory and group utility theory for multiobjective decision making. Firstly, single-attribute von Neumann-Morgenstern utility functions are briefly described. Secondly, for constructing multiattribute utility functions the concept of Keeney's utility independence among multiple attributes is described. Thirdly, the concept of convex dependence is introduced as a generalized concept of utility independence. Fourthly, for constructing group utility functions the concept of convex dependence among multiple decision makers is introduced. Algorithm of identifying multiattribute (and/or group) utility functions and some hypothetical examples for interpreting convex dependence are included.