Utility function under decision theory: A construction arbitration application

Ahmad E. Alozn, Abdulla Galadari

    Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

    2 Scopus citations

    Abstract

    While a wide range of dispute resolution mechanisms exist, practitioners favor legally binding ones such as litigation and arbitration. Since initiating a litigation or arbitration case against a business partner may dissolve the business relationship between them, predicting the arbitrator's decision becomes valuable to the arbitrating parties. This paper proposes a construction-specific utility framework for the arbitrating party through decision theory, and based on expected utility theory. The proposed framework preserves the industry practicality and most importantly, considers direct short-term factors and indirect long-term factors as well. It is suggested that the arbitrating parties' utility functions could be then used to identify equilibrium points among them when interact via game theory principles, which would serve the purpose of predicting the arbitration outcome.

    Original languageBritish English
    Title of host publicationInternational Conference on Mathematics - Pure, Applied and Computation
    Subtitle of host publicationEmpowering Engineering using Mathematics
    EditorsDieky Adzkiya
    ISBN (Electronic)9780735415478
    DOIs
    StatePublished - 1 Aug 2017
    Event2nd International Conference on Mathematics - Pure, Applied and Computation: Empowering Engineering using Mathematics, ICoMPAC 2016 - Surabaya, Indonesia
    Duration: 23 Nov 2016 → …

    Publication series

    NameAIP Conference Proceedings
    Volume1867
    ISSN (Print)0094-243X
    ISSN (Electronic)1551-7616

    Conference

    Conference2nd International Conference on Mathematics - Pure, Applied and Computation: Empowering Engineering using Mathematics, ICoMPAC 2016
    Country/TerritoryIndonesia
    CitySurabaya
    Period23/11/16 → …

    Fingerprint

    Dive into the research topics of 'Utility function under decision theory: A construction arbitration application'. Together they form a unique fingerprint.

    Cite this