In Decision Space: Multidimensional Utility Analysis, Paul Weirich increases the power and versatility of utility analysis and in the process advances decision theory. Combining traditional and novel methods of option evaluation into one systematic method, multidimensional utility analysis is a valuable new tool. The multiple dimensions of this analysis create a decision space broad enough to accommodate all factors affecting an option's utility. The book will be of interest to advanced students and professionals working in the subject of decision theory, as well as to economists and other social scientists.
Author(s): Paul Weirich
Series: Cambridge Studies in Probability, Induction and Decision Theory
Publisher: Cambridge University Press
Year: 2001
Language: English
Pages: 286
Cover......Page 1
Half-title......Page 3
Series-title......Page 5
Title......Page 7
Copyright......Page 8
Dedication......Page 9
Contents......Page 11
Figures......Page 13
Preface......Page 15
1.1. MULTIDIMENSIONAL UTILITY ANALYSIS......Page 17
1.1.1. Conjoint Utility Analyses......Page 18
1.1.2. Precedents for Multidimensional Utility Analysis......Page 25
1.2.1. The Principle of Pros and Cons......Page 28
1.2.2. Utilities and Decisions......Page 33
1.3. IDEALIZATIONS......Page 35
1.3.1. The Purpose of Idealizations......Page 36
1.3.2. My Idealizations......Page 38
1.4. EMPIRICISM IN DECISION THEORY......Page 42
1.4.1. Empiricist Theories of Meaning......Page 43
1.4.2. Contextualism’s Advantages......Page 47
1.4.3. Operationist and Contextualist Explanations......Page 49
1.5. THE BOOK'S PLAN......Page 55
2 Intrinsic Utility Analysis......Page 57
2.1.1. Intrinsic Attitudes......Page 58
2.1.2. Basic Intrinsic Attitudes......Page 64
2.1.3. Conditional Intrinsic Attitudes......Page 70
2.1.4. Complete Sets of Basic Intrinsic Attitudes......Page 71
2.1.5. Principles Governing Intrinsic Attitudes......Page 73
2.2.1. Intrinsic Utility......Page 77
2.2.2. A World’s Intrinsic Utility......Page 83
2.3. COMPREHENSIVE UTILITIES OF WORLDS......Page 89
3 Expected Utility Analysis......Page 91
3.1. DERIVATION FROM THE PRINCIPLE OF PROS AND CONS......Page 92
3.2. A PRECISE FORMULATION OF EXPECTED UTILITY ANALYSIS......Page 93
3.2.1. Options......Page 94
3.2.2. States......Page 102
3.2.3. Outcomes......Page 103
3.2.4. Probability and Utility......Page 116
3.2.5. Expected Utility Analysis Given Independence......Page 121
3.A.1. Definition......Page 123
3.A.2. Cognitive Power......Page 128
3.A.3. Justification......Page 129
4.1. OBJECTIONS......Page 133
4.2.1. Probabilities for the General Case......Page 139
4.2.2. Utilities for the General Case......Page 150
4.A. APPENDIX: ANALYSIS OF CONDITIONAL UTILITIES......Page 162
5.1. INTRINSIC AND EXPECTED UTILITY ANALYSES COMBINED......Page 165
5.2. INTRINSIC UTILITY ANALYSIS OF COMPREHENSIVE UTILITIES......Page 166
5.2.1. Certainty......Page 167
5.2.2. Uncertainty......Page 169
5.2.3. Chances for Realizations of BITs......Page 171
5.3. PARTIAL UTILITY ANALYSIS......Page 172
5.4. MEAN-RISK ANALYSIS OF UTILITIES......Page 178
5.A.1. Viable Hybrids......Page 180
5.A.2. Generalization of Partial Utility Analysis......Page 182
6 Group Utility Analysis......Page 184
6.1. GROUP UTILITY ANALYSIS'S ROLE......Page 185
6.2. GROUPS AS AGENTS......Page 189
6.3. GROUP UTILITY......Page 197
6.4.1. Expected and Group Utility Analyses......Page 204
6.4.2. Intrinsic and Group Utility Analyses......Page 212
6.4.3. Consistency......Page 213
6.5. BARGAINING IN A POWER STRUCTURE......Page 214
6.A. APPENDIX: WEIGHTED UTILITARIANISM, SOCIAL CHOICE, AND GAMES......Page 220
6.A.1. Social Choice......Page 221
6.A.2. Bargaining......Page 222
6.A.3. Coalitions......Page 225
6.A.4. Noncooperative Games......Page 227
7.1. DECISIONS FOR OTHERS......Page 232
7.2. A PROBLEM CREATED BY RISK......Page 236
7.3.1. Clients That Are Groups......Page 244
7.3.2. Trustees That Are Groups......Page 248
7.3.3. An Illustration......Page 249
7.4. THREE-DIMENSIONAL UTILITY ANALYSIS......Page 255
8 Power and Versatility......Page 257
A.1. APPROACHES TO CONSISTENCY......Page 260
A.2. EXPECTED UTILITY ANALYSIS WITH VARIOUS PARTITIONS......Page 266
A.3. EXPECTED AND INTRINSIC UTILITY ANALYSES......Page 269
A.4. PARTIAL AND CANONICAL UTILITY ANALYSES......Page 270
A.5. HYBRID FORMS OF UTILITY ANALYSIS......Page 271
A.6. EXPECTED, INTRINSIC, AND GROUP UTILITY ANALYSES......Page 272
References......Page 276
Index......Page 284
