Satisficing behavior with a secondary criterion

Using the techniques of revealed preference analysis, we study a two-stage model of choice behavior. In the first stage, the decision maker maximizes a menu-dependent binary relation encoding preferences that are imperfectly perceived. In the second, a menu-independent binary relation is maximized over the subset of alternatives that survive the first stage. This structure can support various interpretations, including those of salience effects, positive action, and surface characteristics. We characterize the model behaviorally both in ordinal form and in terms of the corresponding numerical representations

Behavioral implications of shortlisting procedures

We consider two-stage “shortlisting procedures” in which the menu of alternatives is first pruned by some process or criterion and then a binary relation is maximized. Given a particular first-stage process, our main result supplies a necessary and sufficient condition for choice data to be consistent with a procedure in the designated class. This result applies to any class of procedures with a certain lattice structure, including the cases of “consideration filters,” “satisficing with salience effects,” and “rational shortlist methods.” The theory avoids background assumptions made for mathematical convenience; in this and other respects following Richter’s classical analysis of preference-maximizing choice in the absence of shortlisting

Rational Decision-Making in Business Organizations

Lecture to the memory of Alfred Nobel, December 8, 1978decision making;

Measurement in marketing

We distinguish three senses of the concept of measurement (measurement as the selection of observable indicators of theoretical concepts, measurement as the collection of data from respondents, and measurement as the formulation of measurement models linking observable indicators to latent factors representing the theoretical concepts), and we review important issues related to measurement in each of these senses. With regard to measurement in the first sense, we distinguish the steps of construct definition and item generation, and we review scale development efforts reported in three major marketing journals since 2000 to illustrate these steps and derive practical guidelines. With regard to measurement in the second sense, we look at the survey process from the respondent's perspective and discuss the goals that may guide participants' behavior during a survey, the cognitive resources that respondents devote to answering survey questions, and the problems that may occur at the various steps of the survey process. Finally, with regard to measurement in the third sense, we cover both reflective and formative measurement models, and we explain how researchers can assess the quality of measurement in both types of measurement models and how they can ascertain the comparability of measurements across different populations of respondents or conditions of measurement. We also provide a detailed empirical example of measurement analysis for reflective measurement models

Can cheap panel-based internet surveys substitute costly in-person interviews in CV surveys?

With the current growth in broadband penetration, Internet is likely to be the data collection mode of choice for stated preference research in the not so distant future. However, little is known about how this survey mode may influence data quality and welfare estimates. In a first controlled field experiment to date as part of a national contingent valuation (CV) survey estimating willingness to pay (WTP) for biodiversity protection plans, we assign two groups sampled from the same panel of respondents either to an Internet or in-person (in-house) interview mode. Our design is better able than previous studies to isolate measurement effects from sample composition effects. We find little evidence of social desirability bias in the in-person interview setting or satisficing (shortcutting the response process) in the Internet survey. The share of “don’t knows”, zeros and protest responses to the WTP question with a payment card is very similar between modes. Equality of mean WTP between samples cannot be rejected. Considering equivalence, we can reject that mean WTP from the in-person sample is more than 30% higher. Results are quite encouraging for the use of Internet in CV as stated preferences do not seem to be significantly different or biased compared to in-person interviews.Internet; contingent valuation; interviews; survey mode; willingness to pay

Extent, Correlates, and Consequences of Careless and Inattentive Responding in Certification Job Analysis Surveys

Survey data quality is influenced by the care and attention that respondents take in answering questions. Careless and inattentive (CI) responding is a confound in survey data that can distort findings and lead to incorrect conclusions. This quantitative study explored CI responding in job analysis studies supporting occupational certification programs and its relationship to survey features, data quality measures, and test content validity. Satisficing theory served as the framework, and secondary analysis of 3 job analysis surveys was undertaken. Results indicated that 9-33% of respondents engaged in CI responding, with the rate differing by CI index used (Mahalanobis distance, long string analysis, or person-total correlation) and by occupation. Each index detected a distinct pattern of carelessness, supporting the use of multiple indices. The indices performed best detecting carelessness in frequency ratings and may not be useful for all job analysis rating scales. Partial support was found for relationships between carelessness and survey features. CI responding had a minimal impact on mean ratings, correlations, and interrater reliability, and had no impact on certification test content outlines. By providing guidance and caution on the use of CI response detection methods with job analysis survey data, this study produced two potential avenues for social change. For practitioners conducting occupational job analyses, the use of CI detection methods can enhance the validity of data used to make certification decisions. For researchers, follow-up studies can yield a more nuanced understanding of the most appropriate use of these methods in the job analysis context

Satisficing: A Decision-Making Strategy For School Choice

The purpose of this study was to investigate parent decision-making regarding school choice. Data were collected through a survey on how parents approached the decision making task of choosing a school for their child. Parents of kindergarten and first grade students in one public school district in Minnesota and five private schools in surrounding communities were invited to participate. Four bodies of literature provide the theoretical basis of the study. They are education reform; school choice in Minnesota; factors parents consider when choosing schools; and decision-making theory. Satisficing, a concept drawn from Herbert Simon\u27s (1955, 1956) theory of bounded rationality became a key variable in the study. The Maximization Scale short (Nenkov, Morrin, Ward, Schwartz, & Hulland, 2008) was used to identify individuals who maximize, or continually look for the absolute best options in decision-making. Satisficers, in contrast, accept the first best option. The first research question addressed the relationship between the decision-making process parents use to select a school for their children, and the choice they make regarding the school in which they enroll their student(s). Chi-square analysis found a significant difference (X2 = 11.182, df = 4, p \u3c .02) between maximizers and satisficers in regard to the number of schools parents considered before choosing a school. However, there was no significant difference between maximizers and satisficers in the rates at which they enroll their children in schools outside of neighborhood schools. While maximizers considered more school options, these considerations did not translate into leaving the neighborhood school. The second research question examined whether or not there was a difference between parents of first grade students classified as satisficers and those classified as maximizers when asked how satisfied they were with their children\u27s kindergarten. The Chi Square analysis found no statistically significant difference; the satisfaction rates were similar for both maximizers and satisficers. Ninety-one percent (n = 40) of first grade students attended the same school for first grade as they did for kindergarten

The Lack of Systematic Decision-Making by Chinese Students Applying to UK MA Programmes

This study explores how Chinese students chose a university to study a taught Masters programme. It includes an examination of the criteria they use and the process they go through, focusing on the ‘information search’, and ‘evaluation of alternatives’ stages of decision-making. Qualitative individual interviews were undertaken with 10 Chinese students. Findings suggest that decision-making was not as rigorous as might be expected for such an apparently complex, high involvement ‘service’. Reasons for this include: a lack of perceived risk; the amount and complexity of information to be processed, (particularly in a foreign language), and the use of agents and league tables as reassurance for the decision. There is also evidence of satisficing and evidence to support image-based processing. Tentative recommendations are made which focus on the need to achieve the right match between potential students and the chosen programme and institution by trying to increase student engagement with the decision-making process

The Lack of Systematic Decision-Making by Chinese Students Applying to UK MA Programmes

This study explores how Chinese students chose a university to study a taught Masters programme. It includes an examination of the criteria they use and the process they go through, focusing on the ‘information search’, and ‘evaluation of alternatives’ stages of decision-making. Qualitative individual interviews were undertaken with 10 Chinese students. Findings suggest that decision-making was not as rigorous as might be expected for such an apparently complex, high involvement ‘service’. Reasons for this include: a lack of perceived risk; the amount and complexity of information to be processed, (particularly in a foreign language), and the use of agents and league tables as reassurance for the decision. There is also evidence of satisficing and evidence to support image-based processing. Tentative recommendations are made which focus on the need to achieve the right match between potential students and the chosen programme and institution by trying to increase student engagement with the decision-making process

A Review of Near-Collision Driver Behavior Models

Objective: This article provides a review of recent models of driver behavior in on-road collision situations. Background: In efforts to improve traffic safety, computer simulation of accident situations holds promise as a valuable tool, for both academia and industry. However, to ensure the validity of simulations, models are needed that accurately capture near-crash driver behavior, as observed in real traffic or driving experiments.<p> Method: Scientific articles were identified by a systematic approach, including extensive database searches. Criteria for inclusion were defined and applied, including the requirement that models should have been previously applied to simulate on-road collision avoidance behavior. Several selected models were implemented and tested in selected scenarios.<p> Results: The reviewed articles were grouped according to a rough taxonomy based on main emphasis, namely avoidance by braking, avoidance by steering, avoidance by a combination of braking and steering, effects of driver states and characteristics on avoidance, and simulation platforms.<p> Conclusion: A large number of near-collision driver behavior models have been proposed. Validation using human driving data has often been limited, but exceptions exist. The research field appears fragmented, but simulation-based comparison indicates that there may be more similarity between models than what is apparent from the model equations. Further comparison of models is recommended.<p> Application: This review provides traffic safety researchers with an overview of the field of driver models for collision situations. Specifically, researchers aiming to develop simulations of on-road collision accident situations can use this review to find suitable starting points for their work