Advanced Search
MyIDEAS: Login

Cumulative Dominance and Heuristic Performance in Binary Multi - Attribute Choice

Contents:

Author Info

  • Baucells Alibés Manel

    ()
    (UNIVERSITY OF NAVARRA)

  • Carrasco López Juan Antonio

    ()
    (UNIVERSITY OF NAVARRA POLYTECHNIC UNIVERSITY OF CATALONIA POMPEU FABRA UNIVERSITY)

Abstract

Several studies have reported high performance of simple decision heuristics in multi-attribute decision making. In this working paper, we focus on situations where attributes are binary and analyze the performance of Deterministic-Elimination-By-Aspects (DEBA) and similar decision heuristics. We considernon-increasing weights and two probabilistic models for the attribute values: one where attribute values are independent Bernoulli random variables; the other one where they are binary random variables with inter-attribute positive correlations. Using these models, we show that good performance of DEBA is explained by the presence of cumulative as opposed to simple dominance. Wether efore introduce the concepts of cumulative dominance compliance and fully cumulative dominance compliance and show that DEBA satisfies those properties. We derive a lower bound with which cumulative dominance compliant heuristics will choose a best alternative and show that, even with many attributes, this is not small. We also derive an upper bound for the expected loss of fully cumulative compliance heuristics and show that this is moderate even when the number of attributes is large. Both bounds are independent of the values of the weights.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.fbbva.es/TLFU/tlfu/ing/publicaciones/documentos/fichadoc/index.jsp?codigo=202
Download Restriction: no

Bibliographic Info

Paper provided by Fundacion BBVA / BBVA Foundation in its series Working Papers with number 201047.

as in new window
Length: 47
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:fbb:wpaper:201047

Contact details of provider:
Postal: Plaza de San Nicolás, 4, 48005 Bilbao
Phone: +34 94 487 52 52
Fax: +34 94 424 46 21
Email:
Web page: http://www.fbbva.es
More information through EDIRC

Related research

Keywords: Multi-attribute decision making; binary attributes; DEBA; cumulative dominance; performance bounds.;

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Nathan Berg & G. Biele & Gerd Gigerenzer, 2013. "Does Consistency Predict Accuracy of Beliefs?: Economists Surveyed About PSA," Working Papers 1308, University of Otago, Department of Economics, revised Apr 2013.
  2. Berg, Nathan, 2010. "Success from Satisficing and Imitation: Entrepreneurs’ Location Choice and Implications of Heuristics for Local Economic Development," MPRA Paper 26594, University Library of Munich, Germany.
  3. Robin Hogarth & Natalia Karelaia, 2006. "On heuristic and linear models of judgment: Mapping the demand for knowledge," Economics Working Papers 974, Department of Economics and Business, Universitat Pompeu Fabra.
  4. Robin Hogarth & Natalia Karelaia, 2005. "Regions of rationality: Maps for bounded agents," Economics Working Papers 828, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2006.
  5. Konstantinos V. Katsikopoulos, 2009. "Coherence and correspondence in engineering design: informing the conversation and connecting with judgment and decision-making research," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 4(2), pages 147-153, March.
  6. Robin Hogarth & Natalia Karelaia, 2005. "Regions of Rationality: Maps for bounded agents," Working Papers 269, Barcelona Graduate School of Economics.
  7. Clintin Davis-Stober, 2011. "A Geometric Analysis of When Fixed Weighting Schemes Will Outperform Ordinary Least Squares," Psychometrika, Springer, vol. 76(4), pages 650-669, October.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fbb:wpaper:201047. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fundacion BBVA / BBVA Foundation).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.