March 2013
Intermediate to advanced
172 pages
4h 22m
English
Content preview from Multi-objective Decision Analysis
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Exponential Single-Dimensional Value Functions
Exponential value functions can be used for continuous evaluation measures because they are smooth, continuous functions, their mathematical properties are well known, and they are flexible enough to represent increasing, decreasing, or constant returns-to-scale over evaluation measures for which decision makers have either increasing or decreasing preferences.6 Figures 3.4a and 3.4b show examples of exponential single-dimensional value functions.
Figure 3.4a. Exponential value function with increasing preferences.
Figure 3.4b. Exponential value function with decreasing preferences.
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