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PDF papers
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
full text file.pdf (47,808 bytes)
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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

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