Abstracts of Annual Conference of Japan Society for Management Information
Annual Conference of Japan Society for Management Information 2012 Spring
Session ID : E2-2
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Abstract
A proposal of alternative utility function in which utility is treated as vector
*Shojiro Yasui
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Abstract
The concept of utility of von Neumann and Morgenstern treated utility as position on a line, in analogy of Euclidean geometry. This simplification does not help analyzing the preference which have multi-criteria. Moreover, this simplicity make N-M model not to need to specify the original point, at the same time, however, make it difficult to take "status quo" of utility into count in the decision model. This paper seeks the possibility to treat utility as vector, not as position on a line, and utilize it in utility function. The paper start analysis from Euclidean vector (three dimension) but it can be widened to n-dimension by using the concept of vector space.
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© 2012 by Japan Society for Management Information
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