Download or read book Choice Construction Versus Preference Construction written by On Amir and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Preference consistency implies that people have learned their willingness to trade off attributes. We argue that this is not necessarily the case. Instead, we show that when preferences are learned in context (e.g., through repeated choices made from a trinary choice set that includes an asymmetrically dominated decoy), people learn a context specific choice heuristic (e.g., always the asymmetrically dominating option), which leads to less consistent preferences across contexts. In contrast, repeated choices from sets containing only two options impel people to learn their subjective attribute weights, yielding preferences that are consistent across contexts. The difference between choice construction and preference construction is of importance to marketing managers because repeat purchase is typically interpreted as a signal of customer preference. We show that this preference might just be a learned solution to the choice problem, and that as soon as the competitive context changes (in a normatively meaningless way), so will consumers' preferences.
Download or read book The Construction of Preference written by Sarah Lichtenstein and published by Cambridge University Press. This book was released on 2006-08-28 with total page 709 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the main themes that has emerged from behavioral decision research during the past three decades is the view that people's preferences are often constructed in the process of elicitation. This idea is derived from studies demonstrating that normatively equivalent methods of elicitation (e.g., choice and pricing) give rise to systematically different responses. These preference reversals violate the principle of procedure invariance that is fundamental to all theories of rational choice. If different elicitation procedures produce different orderings of options, how can preferences be defined and in what sense do they exist? This book shows not only the historical roots of preference construction but also the blossoming of the concept within psychology, law, marketing, philosophy, environmental policy, and economics. Decision making is now understood to be a highly contingent form of information processing, sensitive to task complexity, time pressure, response mode, framing, reference points, and other contextual factors.
Download or read book Values and Preferences written by Caleb Warren and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Extensive research in the values and preferences literature suggests that preferences are sensitive to context and calculated at the time of choice. This has led to the view that preferences are constructed. Recent work calls for a better understanding of when preferences are constructed and when they are not. We contend that the answer to this question depends on the meaning of the term constructed. Constructed can mean that a preference changes across contexts. If construction is synonymous with context sensitivity, we contend that preferences are always constructed because context influences nearly every aspect of the judgment and choice process. As a motivating example, we show that preferences are influenced by goals and goals are highly context sensitive. Constructed, however, can mean instead that a preference is calculated or formulated during the judgment and choice process. If construction is synonymous with calculation, we contend that many preferences are calculated and the more important question is to what degree preferences are calculated. We review the literature that shows that the degree to which decision makers calculate preferences is influenced by goals, cognitive constraints, and experience.
Download or read book On the Preference Construction Process and the Mental Calculus written by Frances Galliano Hollman and published by . This book was released on 1998 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Cambridge Handbook of Psychology and Economic Behaviour written by Alan Lewis and published by Cambridge University Press. This book was released on 2018-02-15 with total page 1240 pages. Available in PDF, EPUB and Kindle. Book excerpt: There has recently been an escalated interest in the interface between psychology and economics. The Cambridge Handbook of Psychology and Economic Behaviour is a valuable reference dedicated to improving our understanding of the economic mind and economic behaviour. Employing empirical methods - including laboratory and field experiments, observations, questionnaires and interviews - the Handbook provides comprehensive coverage of theory and method, financial and consumer behaviour, the environment and biological perspectives. This second edition also includes new chapters on topics such as neuroeconomics, unemployment, debt, behavioural public finance, and cutting-edge work on fuzzy trace theory and robots, cyborgs and consumption. With distinguished contributors from a variety of countries and theoretical backgrounds, the Handbook is an important step forward in the improvement of communications between the disciplines of psychology and economics that will appeal to academic researchers and graduates in economic psychology and behavioral economics.
Download or read book Handbook of Sustainable Building written by David Anink and published by Earthscan Publications. This book was released on 1996 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: Local Forest Managementis built around careful and illuminating case studies of the effects of devolution policies on the management of forests in several Asian countries. The studies demonstrate that devolution policies – contrary to the claims o
Download or read book Choice Modelling written by Stephane Hess and published by Emerald Group Publishing. This book was released on 2010-01-15 with total page 639 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contains a selection of the best theoretical and applied papers from the inaugural International Choice Modelling Conference. The conference was organised by the Institute for Transport Studies at the University of Leeds and held in Harrogate, North Yorkshire on 30 March to 1 April 2009.
Download or read book The Rationality of Preference Construction and the Irrationality of Rational Choice written by Claire A. Hill and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economists typically assume that preferences are fixed - that people know what they like and how much they like it relative to all other things, and that this rank-ordering is stable over time. But this assumption has never been accepted by any other discipline. Economists are increasingly having difficulty arguing that the assumption is true enough to generate useful predictions and explanations. Indeed, law and economics scholars increasingly acknowledge that preferences are constructed, and that the law itself can help construct preferences. Still, fixed preferences are often treated as a normative ideal: Even if people don't have fixed preferences, they should. Behavioral law and economics scholars offer approaches to deal with this normative shortcoming. My article argues that preference construction, properly understood, is not normatively undesirable. Having fixed preferences means having a complete and stable rank ordering of what we want that dictates our choices. But we often do not have such an ordering, and rationally so. My article argues instead for an alternative process-based, account of preference construction. Rather than having a complete rank ordering, we have ways of making choices. We construct narratives, using evaluative criteria against a backdrop of wants, desires and inclinations, some of which we rank order and some of which we do not. The evaluative criteria embed a consideration of transaction costs: critically, where a decision is not very consequential, a formulaic decision rule that permits a ready choice among roughly comparable alternatives may serve our purposes better than a more considered alternative-by-alternative assessment. Our wants, desires and inclinations are for both traditional objects of choice and higher order values and desires; they are both previously constructed and constructed and elicited in the choice-making process. My article makes the case for such an account's potential explanatory power, as well as its tractability.
Download or read book The Role of Superfluous Ratings and Menu Choice in Preference Construction written by Steven Craig Huff and published by ProQuest. This book was released on 2000 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Irrational Economist written by Erwann Michel-Kerjan and published by Public Affairs. This book was released on 2010-01-01 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors explore how discoveries in decision sciences will enhance traditional ideas about economics and challenges the conventional wisdom about how to make the right decisions in an emerging new era, in a book that includes informative charts.
Download or read book Restoring Consumer Sovereignty written by Adrian Kuenzler and published by Oxford University Press. This book was released on 2017-08-18 with total page 361 pages. Available in PDF, EPUB and Kindle. Book excerpt: In today's highly concentrated marketplaces, social and cultural values--such as the lifestyle connotations that manufacturers and sellers confer upon their goods--often shape consumers' prior beliefs and attitudes and affect the weight given to new information by consumers who make purchasing decisions in the marketplace. Such consumer goods present the largely unexplored problem of contemporary market regulatory theory according to which an increased amount of product differentiation has rendered everyday purchasing decisions such as the choice between an iPhone or a Samsung Galaxy Note as much a matter of personal identity rather than merely one of tangible product attributes. The basic challenge for market regulators and courts in such an environment is to make markets work effectively by providing a more efficient exchange of information about consumer preferences relating to tangible product features, functions, and quality. This book demonstrates that improved legal policy can assist consumers and increase market efficiency. It acknowledges that once particular beliefs held by consumers have become culturally or socially entrenched, they are very difficult to change. What is more, changing such beliefs is no longer simply a matter of educating people through the provision of additional information. Developing a novel framework through a detailed analysis of case law relating to consumer goods markets, this book delivers an accessible introduction to the law and economics of consumer decision-making, and a forceful critique of contemporary market regulatory policy.
Download or read book Preference Construction Habits written by Itamar Simonson and published by . This book was released on 2019 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: We propose that choice constructions strategies often meet the criteria for “habits.” As an example of a constructed preference habit, we focus on extremeness aversion, or the tendency to prefer a middle or “compromise” option versus an “extreme” option from a given options set. We present evidence that some consumers appear to have a habitual tendency to avoid extreme options that is: 1) partly heritable; 2) formed in childhood; and 3) moderated by age and personality traits such as preference for moderation. We discuss the implications of the notion of preference-construction habits and future research directions.
Download or read book The Handbook of Rational and Social Choice written by Paul Anand and published by Oxford University Press. This book was released on 2009-01-15 with total page 592 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume provides an overview of issues arising in work on the foundations of decision theory and social choice. The collection will be of particular value to researchers in economics with interests in utility or welfare, but also to any social scientist or philosopher interested in theories of rationality or group decision-making.
Download or read book Behavioral Decision Theory written by Kazuhisa Takemura and published by Springer Nature. This book was released on 2021-09-29 with total page 389 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is the second edition of Behavioral Decision Theory, published in 2014. The main approach and structure of this book have been retained in the new edition. However, this second edition provides a fresh overview of the idea of behavioral decision theory and related research findings such as theoretical and empirical discoveries of preference formation, time discounting, social interaction, and social decision making. The book covers a wide range from classical to relatively recent major studies concerning behavioral decision theory, which, in brief, is a general term for descriptive theories to explain the psychological knowledge related to people’s decision-making behavior. It is called a theory but is actually a combination of various psychological theories, for which no axiomatic systems—such as those associated with the utility theory widely used in economics—have been established. The utility theory is often limited to qualitative knowledge; however, as the studies of Nobel laureates H. A. Simon, D. Kahneman, and R. Thaler have suggested, the psychological methodology and knowledge of behavioral decision theory have been applied widely in such fields as economics, business administration, and engineering and are expected to become even more useful in the future. Research into people’s decision making represents an important part in those fields, various aspects of which overlap with the scope of behavioral decision theory. This theory is closely related to behavioral economics and behavioral finance, which have come into greater use in recent years. This book will appeal especially to graduate students, advanced undergraduate students, and researchers who are interested in decision-making phenomena.
Download or read book Shaping Entrepreneurship Research written by Saras D. Sarasvathy and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shaping Entrepreneurship Research: Made, as Well as Found is a collection of readings designed to support entrepreneurship research. Focused on a worldview in which the future is open-ended and shapeable through human action - i.e. "made", this collection reframes entrepreneurship as a science of the artificial rather than as a natural or social science. It posits an open-ended universe for the making of human artifacts even if large swathes of nature and society are not within the control of the people making them. The book explores the notion of "made" through 25 foundational readings - classics from the history of ideas. Organized into five sections, each classic is individually introduced by the editors in one of five chapters written to explain its relevance and significance for a "made" view of entrepreneurship. Readers will benefit from exposure to these classic ideas and ongoing research in a variety of areas that fall somewhat outside the line-of-sight of traditional entrepreneurship research. Both individually and collectively, the readings suggest opportunities to ask new questions and develop new ways of framing entrepreneurship research that carry the discussion beyond worlds found to worlds made as well as found. The book is crafted to be valuable to three groups of scholars: young scholars with limited or no access to research infrastructure but with a desire to participate in deep conversations; young scholars with access to research infrastructure who also desire to listen-in on a different kind of conversation; and established entrepreneurship scholars who are contemplating an alternative set of foundational ideas to support their conversations in the discipline.
Download or read book Best Worst Scaling written by Jordan J. Louviere and published by Cambridge University Press. This book was released on 2015-09-23 with total page 363 pages. Available in PDF, EPUB and Kindle. Book excerpt: Best-worst scaling (BWS) is an extension of the method of paired comparison to multiple choices that asks participants to choose both the most and the least attractive options or features from a set of choices. It is an increasingly popular way for academics and practitioners in social science, business, and other disciplines to study and model choice. This book provides an authoritative and systematic treatment of best-worst scaling, introducing readers to the theory and methods for three broad classes of applications. It uses a variety of case studies to illustrate simple but reliable ways to design, implement, apply, and analyze choice data in specific contexts, and showcases the wide range of potential applications across many different disciplines. Best-worst scaling avoids many rating scale problems and will appeal to those wanting to measure subjective quantities with known measurement properties that can be easily interpreted and applied.
Download or read book Discrete Choice Methods with Simulation written by Kenneth Train and published by Cambridge University Press. This book was released on 2009-07-06 with total page 399 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book describes the new generation of discrete choice methods, focusing on the many advances that are made possible by simulation. Researchers use these statistical methods to examine the choices that consumers, households, firms, and other agents make. Each of the major models is covered: logit, generalized extreme value, or GEV (including nested and cross-nested logits), probit, and mixed logit, plus a variety of specifications that build on these basics. Simulation-assisted estimation procedures are investigated and compared, including maximum stimulated likelihood, method of simulated moments, and method of simulated scores. Procedures for drawing from densities are described, including variance reduction techniques such as anithetics and Halton draws. Recent advances in Bayesian procedures are explored, including the use of the Metropolis-Hastings algorithm and its variant Gibbs sampling. The second edition adds chapters on endogeneity and expectation-maximization (EM) algorithms. No other book incorporates all these fields, which have arisen in the past 25 years. The procedures are applicable in many fields, including energy, transportation, environmental studies, health, labor, and marketing.
