Descriptive Models Of Decision Making
Published Online: 15 FEB 2011
Copyright © 2010 John Wiley & Sons, Inc. All rights reserved.
Wiley Encyclopedia of Operations Research and Management Science
How to Cite
Baucells, M. and Katsikopoulos, K. V. 2011. Descriptive Models Of Decision Making. Wiley Encyclopedia of Operations Research and Management Science. .
- Published Online: 15 FEB 2011
How should people decide in situations involving risk, time, uncertainty, and multiattribute alternatives? How do people actually decide? In this article, we contrast the rational decision maker with the modal subject observed in experiments and surveys. We use a simple setup to present preference models and decision processes that are descriptively more accurate than the rational model.
- behavioral decision theory;
- prospect theory;
- diminishing impatience;
- probability judgments;
- noncompensatory heuristics