# Decision analysis using targets instead of utility functions

@article{Bordley2000DecisionAU, title={Decision analysis using targets instead of utility functions}, author={Robert F. Bordley and Marco LiCalzi}, journal={Decisions in Economics and Finance}, year={2000}, volume={23}, pages={53-74} }

Abstract.A common precept of decision analysis under uncertainty is the choice of an action which maximizes the expected value of a utility function. Savage's (1954) axioms for subjective expected utility provide a normative foundation for this principle of choice. This paper shows that the same set of axioms implies that one should select an action which maximizes the probability of meeting an uncertain target. This suggests a new perspective and an alternate target-based language for decision…

## 174 Citations

Normative target-based decision making

- Economics
- 2005

This paper relates normative expected-utility decision making to target-based decision making, and introduces a new quantity, the aspiration equivalent. We show that using the aspiration equivalent…

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The issue of how to bring fuzzy targets within the reach of the target-based model for a class of decision making under uncertainty problems is discussed and two methods for inducing utility functions from fuzzy targets are discussed.

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- EconomicsMDAI
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Two methods have been proposed to model the different types of target preferences: cumulative distribution function (cdf) based method and level set based method, which can both induce four shaped value functions: S - shaped, inverse S -shaped, convex, and concave, which represents decision maker's psychological preference.

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