A final normative model: Multi-Attribute Utility Theory (MAUT)
Model of riskless choice
- Choice of consumer products, restaurants, etc.
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Need to specify
- Dimensions of choice alternatives that enter into decision
- Value of each alternative on those dimensions
- Importance weights of dimensions given ranges (acceptable tradeoff)
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Tradeoffs
- Willingness to interchange x units of dim1 for y units of dim2
- Computer programs can help you with utility assessment and tradeoff assessment