Multi-objective Decision Analysis

Exponential Single-Dimensional Value Functions

Exponential value functions can be used for continuous evaluation measures because they are smooth, continuous functions, their mathematical properties are well known, and they are flexible enough to represent increasing, decreasing, or constant returns-to-scale over evaluation measures for which decision makers have either increasing or decreasing preferences.6 Figures 3.4a and 3.4b show examples of exponential single-dimensional value functions.

Figure 3.4a. Exponential value function with increasing preferences.

Figure 3.4b. Exponential value function with decreasing preferences.

Figure 3.4a ...