Decision Analysis Under States-Additive SSB Preferences
Irving H. Lavalle, Peter C. Fishburn
Operations Research · 1987 · Volume 35 · Issue 5
Abstract
We survey Fishburn's skew-symmetric bilinear (SSB) theory of risky choice under nonlinear and potentially nontransitive preferences and apply the states-additive special case in the context of decision analysis, showing that tractable characterizations of optimal choices are obtainable via linear programming once the decision has been expressed in normal (i.e., tabular) form. If preferences are transitive, they are also linear and representable by von Neumann-Morgenstern utility, in which case optimal choices may be obtained by the familiar recursion analysis of the extensive (i.e., tree) form.
Keywords
096 skew-symmetric bilinear preferences, 857 SSB theory in decision analysis
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