Unveiling the Potential Use of Euler Equations in the Utility Additive Analysis for Mass Appraisal

Abstract

Using mass appraisal techniques has become strategically important in case of plans property assets, investments in technical and economic renewals, alienation of structures no longer suitable for public needs. Multiple operators implement mass appraisal procedures for residential properties. The UTility Additive (UTA) approach for mass residential property evaluation is tested in this research. The UTA considers the process of deciding a property's price as a multi-criteria typology, with the market-determining attributes of the property acting as the selection criteria to which be capable of assigning marginal utility functions. The Euler equations technique makes use of a variety of margin utility functions, including logistic, exponential, and linear ones. The purpose of this research is to provide a novel operational paradigm for figuring out a property's value in relation to UTA and optimization roles. We wished to investigate the applicability of the Euler Equation (linear, exponential, logistic) as marginal utility functions in particular. We look at the results of independently applying several marginal utility functions, illustrating the various performance stances toward the price formation process. The conclusions discuss the potential for using Euler equations as utility marginal functions throughout the UTA, with following extensions of the work in view to evaluate the performance of the operative model UTA on real case studies.