STOCHASTIC MULTI-ATTRIBUTE UTILITY MODEL

Katarina Račić; Željko Račić; Saša Damjanac; Dunja Milić

doi:10.7251/ACE1730047R

Authors

Katarina Račić Bocconi University, Milano https://orcid.org/0000-0002-4352-0175
Željko Račić University of Banja Luka, Faculty of Economics, Banja Luka https://orcid.org/0000-0001-7383-3431
Saša Damjanac IAEA-International Atomic Energy Agency, Viena https://orcid.org/0000-0002-7297-6585
Dunja Milić Bocconi University, Milano https://orcid.org/0000-0002-7077-8542

DOI:

https://doi.org/10.7251/ACE1730047R

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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