Decomposition patterns in problem solving
The paper develops a theory of biases in decision making. Discovering a strategy for solving a game is a complex problem that may be solved by decomposition; a player decomposing a problem into many simple sub- problems may easily identify the optimal solution to each sub-problem: however it is shown that even though all partial solutions are optimal, the solution to the global problem may be largely sub-optimal. The conditions under which a decomposition process gives rise to a sub- optimal solution are explored, and it is shown that the sub-optimalities ultimately originate from the process of categorization that governs the creation of a decomposition pattern. Decisions based on a strategy discovered by decomposition are therefore frequently biased . The persistence of biased behaviours, observed in many experiments, is explained by showing the stability of different and non optimal representations of the same problem. An application to a simplified version of Rubik cube is finally developed.
|Date of creation:||22 Sep 2003|
|Date of revision:||29 Sep 2003|
|Note:||Type of Document - Pdf; prepared on PC ; to print on PostScript; pages: 38 ; figures: included|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
References listed on IDEAS
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- Egidi, Massimo & Narduzzo, Alessandro, 1997.
"The emergence of path-dependent behaviors in cooperative contexts,"
International Journal of Industrial Organization,
Elsevier, vol. 15(6), pages 677-709, October.
- Alessandro Narduzzo & Massimo Egidi, 1996. "The emergence of path-dependent behaviors in cooperative contexts," CEEL Working Papers 9604, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
- Cohen, Michael D, et al, 1996. "Routines and Other Recurring Action Patterns of Organizations: Contemporary Research Issues," Industrial and Corporate Change, Oxford University Press, vol. 5(3), pages 653-698.
- Michael D. Cohen & Roger Burkhart & Giovanni Dosi & Massimo Egidi & Luigi Marengo & Massimo Warglien & Sidney Winter & with comments by Benjamin Coriat, 1995. "Routines and Other Recurring Action Patterns of Organizations: Contemporary Research Issues," Working Papers 95-11-101, Santa Fe Institute.
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