Estimation of attribute weights from preference comparisons. (English) Zbl 0551.90053

Horsky, Dan; Rao, M. R.

Manage. Sci. 30, 801-822 (1984).

The multi-attribute utility model serves as a basis for many marketing decisions such as new product planning and advertising message selection. The estimation of individuals’ attribute weights can be performed using several data types and estimation techniques. There is evidence to suggest that the estimates derived from ordinal preference data through linear programming show greater stability and predictive validity. In this paper we address two fundamental issues which have not been addressed in the context of this latter type estimation: the theoretical foundations for estimating cardinal utility functions from ordinal preference data and the properties of the linear programming estimators.

Reviewer: J.Schwarze

MSC:

90B99	Operations research and management science
91B08	Individual preferences
90C05	Linear programming
90C90	Applications of mathematical programming

Keywords:

marketing; multi-attribute utility model; estimation of individuals’ attribute weights; estimating cardinal utility functions; ordinal preference data; linear programming estimators