Econometric Modeling Of Individual And Social Multi-Attribute Utility Functions.

Econometric techniques for estimating the parameters of individual and composite (group) multi-attribute utility (MAU) models are discussed. These techniques permit measurement of intra- and inter-individual heterogeneity with regard to the importance ascribed to the model attributes. Using data from an experimental task in a simulated university environment, which involved developing criteria for evaluating faculty teaching performance, it is shown that the usual method of ordinary least squares (OLS) can be inaccurate and information restrictive. Implications for design and staffing as well as optimization and implementation of organizational and societal decisions are discussed.