Simple Models for Multi-attribute Choice with Many Alternatives: When it does and does not Pay to Face Tradeoffs with Binary Attributes.

Details

Serval ID
serval:BIB_34EA8B09FC6D
Type
Article: article from journal or magazin.
Collection
Publications
Title
Simple Models for Multi-attribute Choice with Many Alternatives: When it does and does not Pay to Face Tradeoffs with Binary Attributes.
Journal
Management Science, 51(12), 1860-1872.
Author(s)
Hogarth R. M., Karelaia N.
Publication state
Published
Issued date
2005
Abstract
Given the difficulties people experience in making trade-offs, what are the consequences of using simple models that avoid trade-offs? We examine choices by such models in environments where "true" preferences are linear and attributes are characterized by binary attributes. A deterministic elimination-by-aspects (DEBA) model is highly effective over a range of conditions. When preferences are quite compensatory, however, a modified equal weighting (EW) model that uses DEBA to resolve ties is more effective. We explore the sensitivity of results to errors in using DEBA, to different distributions of alternatives, and to error in "true" preferences. Under the conditions examined here, the outcomes of these "boundedly rational" models are highly consistent with "rational" models that explicitly confront trade-offs. We emphasize the importance of binary attributes in reaching these conclusions.
Create date
19/11/2007 10:07
Last modification date
20/08/2019 13:21
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