Research Reports from the Department of Operations

Document Type

Report

Publication Date

9-1-1979

Abstract

The Multi-Attribute Utility Theory is a special branch of a more generalized body of theories collectively known as "Decision Theory". Peter Fishburn described it as the "personalistic prescriptive theory of choice for individual decisions". It is personalistic because the decision maker is an indispensable component in almost every phase of research since his personal values and judgements are intimately involved in a decision-making activity. It should be stressed that the multi-attribute utility theory was never meant to be the panacea of any or all decision problems. It helps the decision maker to choose a strategy (or a course of action) from an available set of alternatives so that he can pursue his objective(s) in the most efficient manner possible. This paper is organized as follows. In Chapter 1 we briefly describe the axioms of von Neumann and Morgenstern, which are at the core of all theoretical developments. In Chapter 2 we present a few representation theorems references to which are frequently made in articles. In Chapter 3 we review some of the applications of this theory in the health care delivery system. Finally, Chapter 4 summarizes the findings.

Keywords

Operations research, Utility theory, Decision making--Mathematical models, Integrated delivery of health care--Decision making

Publication Title

Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University

Issue

Technical memorandum no. 457

Rights

This work is in the public domain and may be freely downloaded for personal or academic use

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