Invariance of multiattribute utility functions under shift transformations (Q732743)
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English | Invariance of multiattribute utility functions under shift transformations |
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Invariance of multiattribute utility functions under shift transformations (English)
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15 October 2009
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The following functional equation \[ U(x_1+z_1,\cdots,x_n+z_n)=k(z_1,\cdots,z_n)U(x_1,\cdots,x_n)+\ell(z_1,\cdots,z_n) \leqno(*) \] on a nonempty connected open subset of \(\mathbb R^n\), originates from the invariance of \(n\)--attribute utility functions under shift transformations. The case \(n=1\) has been studied by \textit{J. Pfanzagl} [Readings Math. Psychol. 2, 492--502 (1965); Naval Res. Logist. Q. 6, 283--294 (1959; Zbl 0173.46001)] and the general continuous strictly monotonic solutions have been described. The authors of the paper under review, after solving equation (*) assuming \(U\) nonconstant and continuous at a point, investigate some restricted forms of (*). First, they assume (*) with some of the shift parameters equal to zero, i.e., \(z_{m+1}=\cdots=z_n=0\) for some \(m>0\). Then they consider the more complex situation when the shift parameters are identical, i.e., \(z_1=z_2=\cdots=z_n=z\). In both cases the form of the solutions continuous at a point is given.
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invariance
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multiattribute utility
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utility functions
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functional equations
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