ISSN:
1540-5915
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
A major issue in value-function assessment is the possibility of receiving an indefinite response from a decision maker to a question about preferences. The conventional treatment requires a single, definite response from the decision maker. This approach either assumes that response error is zero or accepts the final solution as only approximate, without knowing how approximate it might be. In this paper we examine the issue of indefinite responses, define it more precisely, and present a method for incorporating it into decision making. The method is adaptive in that it is iterative and interactive with the decision maker who, at each iteration, is provided with information regarding the potential advantage of answering more trade-off questions and/or answering questions more carefully to reduce response error. In contrast to other approaches that “force” rationality and decisiveness, we work with irrationality and indecisiveness on the part of the decision maker. The method is demonstrated for the case of concave, increasing value functions.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1540-5915.1990.tb01688.x
