The application of multi-attribute utility theory based on the Choquet integral requires the prior identification of a capacity if the utility scale is unipolar, or of a bi-capacity if the utility scale is bipolar. In order to implement a minimum distance principle for capacity or bi-capacity approximation or identification, quadratic distances between capacities and bi-capacities are studied. ...

This paper axiomatizes expected multi-utility representations of incomplete preferences under risk and under uncertainty. The von Neumann–Morgenstern expected utility model with incomplete preferences is revisited using a ‘‘constructive’’ approach, as opposed to earlier treatments that use convex analysis. © 2012 Elsevier B.V. All rights reserved. ‘‘Of all the axioms of utility theory, the comp...

Classically, risk aversion is equated with concavity of the utility function. In this paper we explore the conceptual foundations of this definition. In accordance with neo-classical economics, we seek a scale-free definition of risk aversion, based on the decisions maker’s preference order alone, independent of numerical values. We explore two such definitions. We then show that when cast in q...

Today’s managers are required to make decisions in a techno-complex rapid decision-making environment. This environment is data and information based which requires that managers have tools based on data and information quality (DIQ) to supplement their decision-making activities. The researchers propose a decision support paradigm based on Multi-Attribute Utility Theory (MAUT) that employs a D...

This paper studies the effect of the space (distance) between lotteries' outcomes on risk-taking behavior and the shape of estimated utility and probability weighting functions. Previously investigated experimental data shows a significant space effect in the gain domain. As compared to low spaced lotteries, high spaced lotteries are associated with higher risk aversion for high probabilities o...

This paper is a generalization of our previous publications [2,19-20] where some newly developed models of the harmonization theory, together with various practical applications, have been outlined. The goal of the paper under consideration is to describe in depth both the general concepts of the harmonization theory and the fitness of the latter by citing an example from a widely used class of...