CumInCAD is a Cumulative Index about publications in Computer Aided Architectural Design
supported by the sibling associations ACADIA, CAADRIA, eCAADe, SIGraDi, ASCAAD and CAAD futures

id ddss9847
authors Ruokolainen, Anne and Tempelmans Plat, Herman
year 1998
title A System for Optimizing Private House Owner’s Spendings and Benefits
source Timmermans, Harry (Ed.), Fourth Design and Decision Support Systems in Architecture and Urban Planning Maastricht, the Netherlands), ISBN 90-6814-081-7, July 26-29, 1998
summary Investment decisions about privately-owned houses are usually based on limited investment budget and vague information about choice alternatives available. Since a household buying a dwelling has to compare the housing expenditure with other expenditures, the financial consequences of the housing investment should be transformed on an annual basis. Furthermore, to be able to make a choice out of various choice alternatives within the annual housing budget, the annual costs of the most importantattributes have to be calculated separately. Cost information about the choice alternatives should be used in combination with their utility in order to be able to allocate the household’s budget. The cost information is objective while utility depends on an individual household. As a consequence, the household should determine its own utility scale. This is accomplished by defining a willingness to pay amount for each choice alternative using a bidding game. The willingness to pay amount reveals the maximum additional amount of money the household is willing to pay for an additional quantity orquality of a certain attribute. In order to maximise the total utility within the budget, the ratios of marginal utility to marginal cost for the attributes have to be compared. The definition of subjective utilities as willingness to pay amounts has drawbacks. Future research should improve the system as concerns utility measurement for the decision support of individual households.
keywords Private house owner, attributes, annual budget, marginal utility, marginal cost
series DDSS
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100%; open Flanagan, R., G. Norman, J. Meadows et al. (1989) Find in CUMINCAD Life Cycle Costing: Theory and Practice , BSP Professional Books, Oxford
100%; open Lancaster, K. (1971) Find in CUMINCAD Consumer Demand: A New Approach , Columbia University Press, New York
100%; open Mitchell, R.C. and R.T. Carson (1989) Find in CUMINCAD Using Surveys to Value Public Goods: The Contingent Valuation Method , Resources for the Future, Washington, D.C.
100%; open Tempelmans Plat, H. (1995) Find in CUMINCAD Annual Cost and Property Value Calculation Based on Component Level , Proceedings of the Conference on Financial Management of Property and Construction, Newcastle, Northern Ireland, May 15-17, 1995
100%; open Tempelmans Plat, H. (1996) Find in CUMINCAD Performance Specification and Cost Calculation: Lack of Information and Focus on Solutions , Proceedings of the 3rd International Symposium on the Performance Concept in Building, Tel Aviv, Israel, December 1996, vol 2, pp. 6-25
100%; open von Winterfeldt, D. and W. Edwards (1986) Find in CUMINCAD Decision Analysis and Behavioural Research , Cambridge University Press, Cambridge

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