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The Utility Theory in Maintenance and Repair Strategy

Elsevier Ltd
DOI: 10.1016/j.proeng.2013.03.055
  • Maintenance And Repair Strategy
  • Utility Theory
  • Risk Aversion
  • Decision Making
  • Economics
  • Psychology


Abstract The paper deals with economic and psychological aspects of the decision making process in the area of maintenance and repair. A change of risk assessment criterion from the expected value to maximisation of expected utility is the essence of the approach in question. Some aspects of tendency to risk taking and aversion to risk have been discussed. The theory of utility has been employed. Selected research results on tendency to risk taking have been presented. A variety of environments have been researched, including the so called small business in construction industry. Research results suggest a differentiation of attitudes towards risk which, in turn, influences a choice of decision options. Effects of alternative attitudes have been analysed using dendrites, as well as basing on an example of a plumber. The influence of those attitudes on economic effects of the plumber-decision maker and, therefore, on the area of maintenance and repair are clear. A small plumbing plant(near Poznan, Poland) was the inspiration for this study.

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