Validation and error in multiplicative utility functions

An approach to the concept of error in utility assessment is proposed. Four kinds of errors are considered and each kind is related to four separate elicitation methods - all in the context of a general multiplicative multiattribute utility model. The methods are a Keeney-Raiffa (1976) procedure; SMART, for Simple Multi-Attribute Rating Technique (Edwards 1977); SJT, for a Social Judgment Theory based regression model (Hammond et al. 1975); and HOPE, for Holistic Orthogonal Parameter Estimation (Barron and Person 1979).The individual judgments elicited are either holistic - in which the entity to be evaluated is considered as a whole - or decomposed - in which attention is directed to one or two aspects at a time.If a general multiplicative model can be assumed to be an appropriate representation of the decision maker's basic preference structure, error can occur in the direct estimation of the scaling constants and univariate utility functions for decomposition methods (Keeney-Raiffa and SMART), or in the holistic assessments for holistic methods (SJT and HOPE). Individual estimates may be merely subject to random noise or may be substantially incorrect. The utility model may be incorrectly specified; finally, all four methods may be subject to systematic error. The four assessment methods are considered in conjunction with errors of each kind.