- [[value-based decision making]], [[common currency hypothesis|common currency valuation]] - [[micromorts]] # Idea All attributes affecting preferences must be integrated into one [[utility functions|utility function]]. We have to integrate different attributes into a single utility function so we can evaluate everything along the same scale, using a [[common currency hypothesis|common currency]]. For example, utility often depends on factors like money, time, risk, chances of death. Multi-attribute utilities help decompose high-dimensional functions into tractable pieces. Often, these individual pieces are summed to determine the overall [[utility functions|utility function]]. # Problem If the variables $T$, $K$, $D$, $L$, and $F$ are all binary valued variables, and the utility function is decomposed into $U(T) + U(K) + U(D,L) + U(L,F)$, how many different utility values have to be elicited to characterize the utility function? We need 12 different utility values. $2 + 2 + 2\times2 + 2\times 2 = 12$ We often can break down our utility function into a sum of sub-utilities. ![[Pasted image 20201213232233.png]] # References - https://www.coursera.org/learn/probabilistic-graphical-models/lecture/aLRvk/utility-functions