One-Switch Utility Functions with Annuity Payments

Publication Type: 
Authors: 
A. E. Abbas
J. Chudziak
Description/Abstract: 
This paper derives the functional forms of multiattribute utility functions that lead to a maximum of one-switch change in preferences between any two uncertain and multi-period cash flows as the decision maker’s wealth increases through constant annuity payments. We derive the general and continuous non-constant solutions of the corresponding functional equations.