Book contents
- Frontmatter
- Contents
- List of Figures
- Preface
- 1 Objective and Methods
- 2 Intrinsic Utility Analysis
- 3 Expected Utility Analysis
- 4 Expected Utility's Promotion
- 5 Two-Dimensional Utility Analysis
- 6 Group Utility Analysis
- 7 Application to Trustee Decisions
- 8 Power and Versatility
- Appendix: Consistency of Calculations of Utilities
- References
- Index
Appendix: Consistency of Calculations of Utilities
Published online by Cambridge University Press: 28 July 2009
- Frontmatter
- Contents
- List of Figures
- Preface
- 1 Objective and Methods
- 2 Intrinsic Utility Analysis
- 3 Expected Utility Analysis
- 4 Expected Utility's Promotion
- 5 Two-Dimensional Utility Analysis
- 6 Group Utility Analysis
- 7 Application to Trustee Decisions
- 8 Power and Versatility
- Appendix: Consistency of Calculations of Utilities
- References
- Index
Summary
I have introduced many ways of computing utilities. Are they consistent? For example, is an expected utility analysis of the comprehensive utility of an option, U(o), consistent with its intrinsic utility analysis? I have already argued for the correctness of the various forms of utility analysis. Because correctness entails consistency, I have already argued indirectly for consistency. In particular, the consistency of the forms of utility analysis follows by their common derivation from the principle of pros and cons. Still, I would like to verify consistency independently to check my applications of the principle.
Another related issue is whether forms of utility analysis for one type of utility apply to other types of utility. For example, does an option's group utility as defined in terms of its utility for group members equal its value according to an expected utility analysis? This is an issue of compatibility rather than consistency. But if there is a standard method of calculating each type of utility, the issue may be reduced to the consistency of a standard and a hybrid calculation for a type of utility. Furthermore, given two hybrid utility analyses of the same type of utility, the question of their consistency arises. I explore such consistency issues concerning hybrids, too.
This appendix answers a representative sample of questions about consistency but does not answer all such questions. Some unaddressed questions may be answered using the techniques illustrated, and are left as exercises for the reader.
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- Chapter
- Information
- Decision SpaceMultidimensional Utility Analysis, pp. 244 - 259Publisher: Cambridge University PressPrint publication year: 2001