The two-model problem in rational decision making

Bibliographic Data

ID5722313
AuthorsMarcel Boumans (0000-0002-8717-8148, University of Amsterdam, the Netherlands,, corresponding author)
Year2011
Volume23
Issue3
Pages371-400
Publication date2011-08-01
Open AccessYes
TypeARTICLE
VenueRationality and Society (JOURNAL)
Journal identifiersISSN: 1043-4631 • E-ISSN: 1461-7358
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/1043463111414123
OpenAlexW2041877592
LanguageEN
References cited21

A model of a decision problem frames that problem in three dimensions: sample space, target probability and information structure. Each specific model imposes a specific rational decision. As a result, different models may impose different, even contradictory, rational decisions, creating choice 'anomalies' and 'paradoxes'. So, decision making in real-life situations is different from decision making in an experiment. An experiment is a designed setting according to an experimenter's model of the decision problem, while for a real-life situation it is not always obvious what the design is. A subject in an experiment may initially have a different model of the task than the experimenter and thus possibly make apparently irrational decisions from the experimenter's model perspective. As a consequence a choice anomaly can be eliminated by learning what the experiment's model is

Business decision mapping · Decision analysis · Decision engineering · Decision field theory · Decision model · Decision problem · Decision support system · Decision tree · Decision-making models · Economics · Expected utility hypothesis · Irrational number · Machine learning · Mathematical economics · Optimal decision · Rational planning model · Subjective expected utility · Complex Systems and Decision Making · Computer Science · Decision-Making and Behavioral Economics · Forecasting Techniques and Applications · Mathematics · Artificial Intelligence

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