Take-the-best and other simple strategies: Why and when they work 'well' in binary choice

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Theory and Decision, 61, 205-249, 2006
To cite or link this document: http://hdl.handle.net/10230/315
dc.contributor.author Hogarth, Robin
dc.contributor.author Karelaia, Natalia
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2003-10-01
dc.identifier.citation Theory and Decision, 61, 205-249, 2006
dc.identifier.uri http://hdl.handle.net/10230/315
dc.description.abstract The effectiveness of decision rules depends on characteristics of both rules and environments. A theoretical analysis of environments specifies the relative predictive accuracies of the lexicographic rule 'take-the-best' (TTB) and other simple strategies for binary choice. We identify three factors: how the environment weights variables; characteristics of choice sets; and error. For cases involving from three to five binary cues, TTB is effective across many environments. However, hybrids of equal weights (EW) and TTB models are more effective as environments become more compensatory. In the presence of error, TTB and similar models do not predict much better than a naïve model that exploits dominance. We emphasize psychological implications and the need for more complete theories of the environment that include the role of error.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 709
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Take-the-best and other simple strategies: Why and when they work 'well' in binary choice
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:10Z
dc.subject.keyword Behavioral and Experimental Economics
dc.subject.keyword decision making
dc.subject.keyword bounded rationality
dc.subject.keyword lexicographic rules
dc.subject.keyword leex
dc.rights.accessRights info:eu-repo/semantics/openAccess

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