00626914

Component

http://onlinepubs.trb.org...trr/1992/1358/1358-015.pdf

https://scholar.google.co...+Sun&publication_year=1992

Multiattribute utility theory is used to investigate a supplier's value of offering aeromedical service. Using joint probability functions over net revenue, publicity, and medical benefit dimensions to capture the operating performance of the service and a multiattribute utility function with random parameters to capture the supplier's preferences, it is found that providing service is preferred to shutting down the program for all of the 1,000 sets of utility parameters generated. Using the analysis developed, however, it is evident that no one dimension is sufficient to justify service when the cost of providing the service is considered. The revenue dimension comes closest, but the roughly 50% chance of suffering financial losses and the strong aversion to these losses lead to the conclusion that revenues alone are not sufficient to continue operations. When using the analysis to look at pairs of dimensions, it appears that the revenue-medical benefit pair is sufficient to justify service for fewer than half of the 1,000 sets of utility parameters and that the publicity dimension is extremely important in motivating the supplier to provide service. The results are interpreted to form a working hypothesis that suppliers must either believe that flying emergency missions provides important publicity value to the sponsoring hospitals or be ensured of better financial security if they are to continue to provide this emergency medical service.

This paper appears in Transportation Research Record No. 1358, Vehicle Routing, Traveler ADIS, Network Modeling, and Advanced Control Systems. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved

01405045

English

p. 95-102

1992

Transportation Research Record

0309052246

Figures (3) ; References (17) ; Tables (3)

Benefits; Costs; Emergency medical services; Health care; Publicity; Revenues; Suppliers; Utility theory

Medical benefits

Economics; Finance; Highways; Planning and Forecasting; Safety and Human Factors; I72: Traffic and Transport Planning

TRIS, TRB

Feb 22 1993 12:00AM

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