Multiple-Perspective Utility Analysis

Multiple-Perspective Utility Analysis

Multiple-perspective utility analysis is a decision-making framework used when options need to be evaluated from different viewpoints or perspectives, each with its own set of utilities and weights. The process involves:

1. Define perspectives: Identify the relevant perspectives (e.g., monetary interests, working relationship).
2. Assign utilities: For each option-outcome combination, assign a utility value from each perspective (typically 0 to 100).
3. Compute expected values: For each perspective, multiply utilities by probabilities of outcomes and sum to get expected utility for each option.
4. Weight perspectives: Assign weights based on importance, using utility scales that support the intended tradeoffs.
5. Merge: Multiply each perspective's expected utility by its weight and sum to get total weighted expected utility for each option.
6. Decide: Identify the option with the highest total weighted expected utility, then check how sensitive the ranking is to uncertain inputs.

In the supplied NBA players’ strike example, the union considers two perspectives: monetary interests and the working relationship with owners. Utilities were assigned for each combination of strike/don't strike and outcomes (20% reduction, 10% reduction, no reduction). Probabilities were given, expected values computed, and then combined with weights (0.6 for monetary, 0.4 for relationship) to find that not striking has a higher total weighted expected utility under those assumptions.