Utility independence

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In multiattribute utility theory, an attribute set X is utility independent from attribute set Y if the utility for the attributes of set X does not change when the attributes in Y are varied.
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The test for utility independence can be found by using the lottery, which is described in multiattribute utility theory. Take an example of two attribute sets of color (red/black/green) and style (sports car/SUV). The designer is indifferent between the certainty of a green sports car and a p chance of a red sports car and a 1-p chance of a black sports car. If the decision maker is also indifferent between the certainty of a green SUV and a p chance of a red SUV and a 1-p chance of a black SUV, with the value of p equal in both cases, then attribute X is utility independent from attribute Y.
Image:Utility_indep2.JPG

This condition is a stronger condition than preferential independence. If two attributes are utility independent then they must be preferentially independent as well, but not vice versa.

References

  • Thurston, Deborah L. "Multi-attribute Utility Analysis of Conflicting Preferences." Decision Making in Engineering Design. Ed. Kemper E. Lewis, et al. New York, New York: ASME Press, 2006. 125-133.
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