Scale construction from a decisional viewpoint

Minds and Machines 16 (3):339-364 (2006)
Many quantitative scales are constructed using cutoffs on a continuum with scores assigned to the cutoffs. This paper develops a framework for using or constructing such scales from a decision-making standpoint. It addresses questions such as: How many distinct thresholds or cutoffs on a scale (i.e., what levels of granularity) are useful for a rational agent? Where should these thresholds be placed given a rational agent’s preferences and risk-orientation? Do scale score assignments have any bearing on decision-making and if so, how should scores be assigned? Given two possible states of nature , an ordered collection of alternatives from which one is to be selected depending on the probability that A is the case, a simple expected utility condition stipulates when adjacent alternatives are distinguishable and determines the threshold odds separating them. Threshold odds and utilities are mapped onto scale scores via a simple distance model. The placement of the thresholds reflects relative concern over decisional consequences given A versus consequences given ∼ A. Likewise, it is shown that scale scores reflect risk-aversion or risk-seeking not only with respect to A versus ∼ A but also with respect to the rank of the R j . Connections are drawn between this framework and rank-dependent expected utility (RDEU) theory. Implications are adumbrated for both machine and human decision-making.
Keywords Measurement  Expected utility  Scale construction  Granularity  Decision  Uncertainty
Categories (categorize this paper)
DOI 10.1007/s11023-006-9034-2
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history
Request removal from index
Download options
Our Archive

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 27,613
Through your library
References found in this work BETA
Common Knowledge Revisited.Ronald Fagin, Joseph Y. Halpern, Yoram Moses & Moshe Y. Vardi - 1999 - Annals of Pure and Applied Logic 96 (1-3):89-105.

Add more references

Citations of this work BETA

Add more citations

Similar books and articles

Monthly downloads

Added to index


Total downloads

18 ( #270,400 of 2,168,639 )

Recent downloads (6 months)

1 ( #346,816 of 2,168,639 )

How can I increase my downloads?

My notes
Sign in to use this feature

There  are no threads in this forum
Nothing in this forum yet.

Other forums