STOCHASTIC MULTI-ATTRIBUTE UTILITY MODEL

Keywords: Stochastic Multi-Attribute Utility Model, value, utility, probability, weights

Abstract

In real situations, the attribute value (mostly variable) can be best represented by introducing the finite number of attribute values level, to which the corresponding probabilities should also be attached. Stochastic Multi-Attribute Utility Model has the ability to analyze such stochastic multi-attribute problems. The choice of one, from the set of available options, is made by choosing the best option based on the maximum expected utility structure. In this paper, we will mention some arguments for the development of the Stochastic Multi-Attribute Utility Model, its advantages (they are closer to reality), disadvantages (analytically difficult technique, subjective assessments of the values of variable attributes), as well as the process of solving the problem.

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Published
2019-06-30
How to Cite
Račić, K., Račić, Željko, Damjanac, S., & Milić, D. (2019). STOCHASTIC MULTI-ATTRIBUTE UTILITY MODEL. Acta Economica, 17(30), 47-58. https://doi.org/10.7251/ACE1730047R
Section
Review article

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