Ilia Tsetlin, Robert L. Winkler
The one-switch property states that the preference between any two lotteries switches at most once as wealth increases. Working within the expected utility framework, we extend the one-switch notion to the multiattribute case and identify the families of multiattribute utility functions that are one-switch. We then show that all multiattribute one-switch utility functions can be approximated by a sum of two multiattribute exponential utilities (sumex utility). Finally, we discuss how the one-switch property, when appropriate, can simplify the assessment of multiattribute utility. © 2012 INFORMS.
INSEAD, Singapore 138676, Singapore; Fuqua School of Business, Duke University, Durham, NC 27708, United States
