How Robust is the Theory of Consumer Choice in the Face of Discrete Goods with Multiple Attributes: An Experimental Approach

Abstract

The objective of this study is to examine how individuals make choices when faced with discrete multi-attribute goods. Laboratory methods are utilized to obtain controlled experimental data and test specific hypotheses. The main results are that: (a) the relative tradeoff between the attributes is a significant treatment variable, and (b) the majority of experimental subjects adopt heuristics that approximate the optimal solution to a complex linear programming problem. Further, the subjects rarely choose a fixed payoff option with a known payoff and low decision cost, even when the fixed payoff is 80% of the maximum possible under the decision-making task.

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 2002
Accession Number
ADA405704

Entities

People

  • Elisabet Rutstrom
  • Mark Van Boening
  • Michael D McKee
  • Tanja F. Blackstone

Organizations

  • Navy Personnel Research, Studies, and Technology

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Algorithms
  • Business Administration
  • Computer Programming
  • Computer Programs
  • Computers
  • Consumers
  • Databases
  • Domain Specific Programming Languages
  • Experimental Data
  • Experimental Design
  • Institutional Review Board
  • Linear Programming
  • Military Personnel
  • Money
  • Operating Systems
  • Spreadsheet Software
  • Word Processors

Readers

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