×

Can a linear value function explain choices? An experimental study. (English) Zbl 1244.91025

Summary: We investigate in a simple bi-criteria experimental study, whether subjects are consistent with a linear value function while making binary choices. Many inconsistencies appeared in our experiment. However, the impact of inconsistencies on the linearity vs. non-linearity of the value function was minor. Moreover, a linear value function seems to predict choices for bi-criteria problems quite well. This ability to predict is independent of whether the value function is diagnosed linear or not. Inconsistencies in responses did not necessarily change the original diagnosis of the form of the value function. Our findings have implications for the design and development of decision support tools for Multiple Criteria Decision Making problems.

MSC:

91A90 Experimental studies
91B06 Decision theory
90C29 Multi-objective and goal programming
Full Text: DOI

References:

[1] (Bigelow, J., The Complete Works of Benjamin Franklin, Vol. 4 (1887), Putnam: Putnam New York)
[2] Charnes, A.; Cooper, W. W., Management Models and Industrial Applications of Linear Programming (1961), Wiley: Wiley New York · Zbl 0107.37004
[3] Charnes, A.; Cooper, W. W.; Rhodes, E., Measuring the efficiency of decision making units, European Journal of Operational Research, 2, 429-444 (1978) · Zbl 0416.90080
[4] Dawes, R. M., The robust beauty of improper linear models in decision making, American Psychologist, 34, 7, 571-582 (1979)
[5] Dawes, R. M.; Corrigan, B., Linear models in decision making, Psychological Bulletin, 81, 95-106 (1974)
[6] Einhorn, H. J.; Hogarth, R. M., Behavioral decision theory: processes of judgment and choice, Annual Review of Psychology, 32, 53-88 (1981)
[7] Köksalan, M.; Büyükbaşaran, T.; Özpeynirci, Ö.; Wallenius, J., A flexible approach to ranking with an application to MBA programs, European Journal of Operational Research, 201, 470-476 (2010) · Zbl 1190.90106
[8] Köksalan, M.; Ulu, C., An interactive procedure for placing alternatives in preference classes, European Journal of Operational Research, 144, 429-439 (2003) · Zbl 1028.90524
[9] Korhonen, P.; Moskowitz, H.; Wallenius, J., Multiple criteria decision support – a review, European Journal of Operational Research, 63, 361-375 (1992) · Zbl 0825.90576
[10] Korhonen, P.; Wallenius, J., A careful look at efficiency and utility in multiple criteria decision-making: a tutorial, Asia-Pacific Journal of Operational Research, 6, 46-62 (1989) · Zbl 0729.90054
[11] Neter, J.; Wasserman, W.; Whitmore, G. A., Applied Statistics (1988), Allyn and Bacon: Allyn and Bacon Boston
[12] Phelps, S.; Köksalan, M., An interactive evolutionary metaheuristic for multiobjective combinatorial optimization, Management Science, 49, 1726-1738 (2003) · Zbl 1232.90330
[13] Saaty, T., The Analytic Hierarchy Process (1980), McGraw-Hill: McGraw-Hill New York · Zbl 1176.90315
[14] Scheubrein, R.; Bossert, B., An Internet System to Apply the Balanced Scorecard Concept to Supply Chain Management, (Köksalan, M.; Zionts, S., MCDM in the New Millennium. MCDM in the New Millennium, Lecture Notes in Economics and Mathematical Systems, 507 (2001), Springer: Springer Berlin), 348-356 · Zbl 1018.90513
[15] Simon, H. A., Rational choice and the structure of the environment, Psychological Review, 63, 129-138 (1956)
[16] Tversky, A., Intransitivity of preferences, Psychological Review, 76, 105-110 (1969)
[17] Zionts, S., A multiple criteria method for choosing among discrete alternatives, European Journal of Operational Research, 7, 143-147 (1981) · Zbl 0452.90070
[18] Zionts, S.; Wallenius, J., An interactive programming method for solving the multiple criteria problem, Management Science, 22, 652-663 (1976) · Zbl 0318.90053
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.