Multiattribute Preference Analysis with Performance Targets

This paper develops an approach based on performance targets to assess a preference function for a multiobjective decision under uncertainty. This approach yields preference functions that are strategically equivalent to conventional multiattribute utility functions, but the target-oriented approach is more natural for some classes of decisions. In some situations, the target-oriented preference conditions are analogous to reliability theory conditions for series or parallel failure modes in a system. In such cases, reinterpreting the conditions using reliability concepts can be useful in assessing the preference function. The target-oriented approach is also a generalization of common forms of goal programming. The approach has particular applicability for resource allocation decisions where the outcome of the decision is significantly determined by the actions of other stakeholders to the decision, such as new product development or decision making in a controversial regulated environment.