Maximization of an Asymmetric Utility Function by the Least Squares
Keywords:individual behavior, inverse problems, simultaneous equations, optimization
AbstractThis note points out that a utility maximization procedure proposed in an earlier paper may be reduced to the least squares.The utility function is asymmetric in the sense that for each cue an ideal value and a permissible range are assigned in such a way that the ideal value is not necessarily at the center of the interval, like "a beer of 350 [ml] would be ideal, but acceptable if within [100, 500]". A practical consequence of the observation is that very little programming will be needed to deploy the utility maximization, since software for the least squares is widely available.
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How to Cite
Yoneda, K., & Moretti, A. C. (2014). Maximization of an Asymmetric Utility Function by the Least Squares. Decision Making in Manufacturing and Services, 8(1-2), 5–12. https://doi.org/10.7494/dmms.2014.8.1.5
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