PL EN


2015 | 10 | 141-154
Article title

On a Sequential Decision Process Where Offers Are Described by Two Traits

Authors
Content
Title variants
Languages of publication
EN
Abstracts
EN
This article presents a model of searching for some resource, e.g. a job, whose value depends on two quantitative traits. The decision maker observes offers in a random order and must accept precisely one offer. Recall of previously observed offers is not possible. It is assumed that the value of an offer is a linear function of these two traits, which come from a bivariate normal distribution. We consider the following four strategy sets: i) the decision on whether to accept an offer is based purely on the first trait, ii) any decision is only made after observing both traits, iii) after observing the first trait, the decision maker can either immediately accept, immediately reject or observe the second trait and then decide, iv) after observing the first trait, the decision maker can either immediately reject or observe the second trait and then decide. The goal of the decision maker is to maximize his expected reward, where the reward is equal to the value of the offer selected minus the search costs. The optimal strategy from each of these four sets is derived. An example is given.
Year
Volume
10
Pages
141-154
Physical description
Contributors
References
  • Analytis P.P., Kothiyal A., Katsikopoulos K. (2014), Multi-attribute Utility Models as Cognitive Search Engines, Judgment and Decision Making, No. 95, 403-419.
  • Backwell P.R.Y., Passmore N.I. (1996), Time Constraints and Multiple Choice Criteria in the Sampling Behaviour and Mate Choice of the Fiddler Crab, Uca Annulipes, Behavioral Ecology and Sociobiology, No. 38 (6), 407-416.
  • Baucells M., Carrasco J.A., Hogarth R.M. (2008), Cumulative Dominance and Heuristic Performance in Binary Multiattribute Choice, Operations Research, No. 56 (5), 1289-1304.
  • Bearden J.N., Connolly T. (2007), Multi-attribute Sequential Search, Organizational Behavior and Human Decision Processes, No. 103 (1), 147-158.
  • Castellano S., Cermelli P. (2011), Sampling and Assessment Accuracy in Mate Choice: A Randomwalk Model of Information Processing in Mating Decision, Journal of Theoretical Biology, No. 274 (1), 161-169.
  • Fawcett T.W., Johnstone R.A. (2003), Optimal Assessment of Multiple Cues, Proceedings of the Royal Society of London B: Biological Sciences, No. 270.1524, 1637-1643.
  • Hogarth R.M., Karelaia N. (2005), Simple Models for Multiattribute Choice with Many Alternatives: When It Does and Does Not Pay to Face Trade-offs with Binary Attributes, Management Science, No. 51 (12), 1860-1872.
  • Janetos A.C. (1980), Strategies of Female Mate Choice: A Theoretical Analysis, Behavioral Ecology and Sociobiology, No. 7 (2), 107-112.
  • Lim C., Bearden J.N., Smith J.C. (2006), Sequential Search with Multiattribute Options, Decision Analysis, No. 3 (1), 3-15.
  • Ramsey D.M. (2012), Partnership Formation Based on Multiple Traits, European Journal of Operational Research, No. 216 (3), 624-637.
  • Stigler G.J. (1961), The Economics of Information, The Journal of Political Economy, No. 69 (3), 213-225.
  • Wiegmann D.D., Weinersmith K.L., Seubert S.M. (2010), Multi-attribute Mate Choice Decisions and Uncertainty in the Decision Process: A Generalized Sequential Search Strategy, Journal of Mathematical Biology, No. 60 (4), 543-572.
Document Type
Publication order reference
Identifiers
ISSN
2084-1531
YADDA identifier
bwmeta1.element.cejsh-124f1300-5c09-4ea3-94a4-545302a424ab
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.