Multiplicative Utility Functions

Abstract

This paper presents sufficient conditions for a multiattribute utility function to be either multiplicative or additive. The number of requisite assumptions to imply the main result is equal to the number of attributes. Because the assumptions involve only trade-offs between two attributes at a time or lotteries over one attribute, it is reasonable to expect that decision makers can ascertain whether these assumptions are appropriate for their specific problems. Procedures are given for verifying the assumptions and assessing the resulting utility functions. The paper concludes with a sketch of a recent application of the results to a six-attribute problem relating to the development of Mexico City's airport facilities.