Classification of Human Decision Behavior: Finding Modular Decision Rules with Genetic Algorithms

The understanding of human behavior in sequential decision tasks is important for economics and socio-psychological sciences. In search tasks, for example when individuals search for the best price of a product, they are confronted in sequential steps with different situations and they have to decide whether to continue or stop searching. The decision behavior of individuals in such search tasks is described by a search strategy. This paper presents a new approach of finding high-quality search strategies by using genetic algorithms (GAs). Only the structure of the search strategies and the basic building blocks (price thresholds and price patterns) that can be used for the search strategies are pre-specified. It is the purpose of the GA to construct search strategies that well describe human search behavior. The search strategies found by the GA are able to predict human behavior in search tasks better than traditional search strategies from the literature which are usually based on theoretical assumptions about human behavior in search tasks. Furthermore, the found search strategies are reasonable in the sense that they can be well interpreted, and generally that means they describe the search behavior of a larger group of individuals and allow some kind of categorization and classification. The results of this study open a new perspective for future research in developing behavioral strategies. Instead of deriving search strategies from theoretical assumptions about human behavior, researchers can directly analyze human behavior in search tasks and find appropriate and high- quality search strategies. These can be used for gaining new insights into the motivation behind human search and for developing new theoretical models about human search behavior.

Classification of Human Decision Behavior: Finding

The understanding of human behavior in sequential decision tasks is important for economics and socio-psychological sciences. In search tasks, for example when individuals search for the best price of a product, they are confronted in sequential steps with different situations and they have to decide whether to continue or stop searching. The decision behavior of individuals in such search tasks is described by a search strategy. This paper presents a new approach of finding high-quality search strategies by using genetic algorithms (GAs). Only the structure of the search strategies and the basic building blocks (price thresholds and price patterns) that can be used for the search strategies are pre- specified. It is the purpose of the GA to construct search strategies that well describe human search behavior. The search strategies found by the GA are able to predict human behavior in search tasks better than traditional search strategies from the literature which are usually based on theoretical assumptions about human behavior in search tasks. Furthermore, the found search strategies are reasonable in the sense that they can be well interpreted, and generally that means they describe the search behavior of a larger group of individuals and allow some kind of categorization and classification. The results of this study open a new perspective for future research in developing behavioral strategies. Instead of deriving search strategies from theoretical assumptions about human behavior, researchers can directly analyze human behavior in search tasks and find appropriate and high-quality search strategies. These can be used for gaining new insights into the motivation behind human search and for developing new theoretical models about human search behavior.

The Rationale for Wage Rigidity: Survey Evidence from German and US Firms

The study provides evidence for the rationale of wage rigidity in Germany compared to the United States. Based on a survey of 801 firms, we extend the study of Campbell and Kanlani (1997, this journal) by using more thorough econometric methods, for example, and find strong support for explanations based on labor union contracts and implicit wages for Germany. Furthermore, survey respondents indicated that labor union contracts and implicit contracts are important reasons for wage rigidity for the (less) skilled. Specific human capital and negative signals for new hires are important reasons for the highly skilled. In contrast to the US experience for German firms insider-outsider behavior, labor union contracts and specific human capital seem to be more important explanations of wage rigidity

Tarifbindung und die ökonomische Rationalität von Lohnrigiditäten

Eine träge Anpassungsgeschwindigkeit der Löhne zu einem markträumenden Gleichgewicht bildet nicht nur ein konstitutives Element einer Klasse von makrotheoretischen Ansätzen ("Ungleichgewichtsmodelle"), sondern ist auch durch eine Reihe von empirischen Studien gut belegt. Solche Lohnrigiditäten werden in zahlreichen wissenschaftlichen Arbeiten und in der Öffentlichkeit als einer der Hauptgründe dafür angesehen, dass sich die Arbeitslosigkeit in (West-)Deutschland nicht stärker als bisher zurückgebildet hat, verbunden mit der Empfehlung, den Flächentarifvertrag zugunsten einer betrieblichen Lohnbildung aufzugeben oder sogar zu verbieten. Unbeschadet der Frage, in welchem Ausmaß nominale oder reale Lohnrigiditäten nun tatsächlich für den Anstieg und die Persistenz der Arbeitslosigkeit verantwortlich sind und ob die Verlagerung der Lohnverhandlungen rein auf die betriebliche Ebene die erhofften Flexibilitäten und Beschäftigungsgewinne erbringt, stellt sich die Frage, warum sich eine Gesellschaft den Luxus von Lohnstarrheiten leistet, wenn dies mit so hohen Kosten in Form von Beschäftigungslosigkeit verbunden ist. Die ökonomische Theorie hat in Beantwortung dieser Frage eine Reihe von Argumenten vorgetragen, die zeigen, dass es ökonomisch durchaus rational sein kann, die Löhne nicht ständig der sich ändernden Arbeitsmarktsituation anzupassen, sei dies aus der Sicht der Arbeitnehmer oder Gewerkschaften (wie beispielsweise die "Insider-Outsider"-Theorie), sei dies aus dem Blickwinkel der Unternehmen (wie beispielsweise die Effizienztheorie). Die Brisanz dieses theoretischen Nachweises liegt auf der Hand: Wie sollen dann rational handelnde Arbeitnehmer, Gewerkschaften und Unternehmer dazu gebracht werden, entgegen ihrer Rationalität flexiblere Löhne (und Lohnstrukturen) zu vereinbaren

Screening of agents for thinning blossoms of apple trees

In May 2001 different plant oils, lime sulfur, starch, Na-bicarbonate and three concentrations of salt were proofed for their suitability for thinning blossoms at the apple variety Pinova. The trees grew in a conventionally treated part of the experimental orchard in Heuchlingen. The experiment had the character of a screening. Side effects like russeting and damages of blossom or leaves were registered too

Tarifbindung und die ökonomische Rationalität von Lohnrigiditäten

This study provides empirical evidence for the economic rationality of wage rigidities. Theoretically wage rigidities can result from contracts, implicit contracts, from efficiency wages and from insider-outsider behaviour. Based on a survey of 801 firms strong support has been found for explanations based on collective wage agreements and on efficency wages as well. Collective wage agreements and implicit contracts are important reasons for wage rigidities for the low skilled. Furthermore survey respondents indicate that the reduction of turnover costs, adverse selection and specific human capital in quits are important reasons for wage rigidities for high skilled labour. Compared to findings from the USA, in Germany collective wage agreements and firm specific human capital seem to be more important explanations. --Lohnrigiditäten,Arbeitsrecht,Tarifverträge,Effizienzlohntheorien,?Insider-Outsider?-Theorien,Beschäftigung

Classification of Human Decision Behavior : Finding Modular Decision Rules with Genetic Algorithms

The understanding of human behavior in sequential decision tasks is important for economics and socio-psychological sciences. In search tasks, for example when individuals search for the best price of a product, they are confronted in sequential steps with different situations and they have to decide whether to continue or stop searching. The decision behavior of individuals in such search tasks is described by a search strategy. This paper presents a new approach of finding high-quality search strategies by using genetic algorithms (GAs). Only the structure of the search strategies and the basic building blocks (price thresholds and price patterns) that can be used for the search strategies are pre-specified. It is the purpose of the GA to construct search strategies that well describe human search behavior. The search strategies found by the GA are able to predict human behavior in search tasks better than traditional search strategies from the literature which are usually based on theoretical assumptions about human behavior in search tasks. Furthermore, the found search strategies are reasonable in the sense that they can be well interpreted, and generally that means they describe the search behavior of a larger group of individuals and allow some kind of categorization and classification. The results of this study open a new perspective for future research in developing behavioral strategies. Instead of deriving search strategies from theoretical assumptions about human behavior, researchers can directly analyze human behavior in search tasks and find appropriate and high-quality search strategies. These can be used for gaining new insights into the motivation behind human search and for developing new theoretical models about human search behavior

ON THE RELATIONSHIP BETWEEN INTERACTIVE DECISION AIDS AND DECISION STRATEGIES: A THEORETICAL ANALYSIS

Internet shops enable customers to easily compare a large number of products. During their buying decision, customers apply decision strategies which describe their way of choosing their preferred product. In order to support the customers, Internet shops offer interactive decision aids like sorting or filtering mechanisms. This paper answers the question, which types of interactive decision aids are necessary to apply specific decision strategies. Based on the analysis, web designers are advised to offer those decision aids that go best with the most commonly used decision strategies and make decisions easier and more precise

Facilitating the Usage of Decision Strategies by Interactive Decision Aids: A Conceptual Analysis

Internet shops like amazon.com or activeshopper.com enable customers to compare a large amount of products (e.g., digital camera) and product properties (e.g., price) in form of a comparison matrix. For choosing the preferred product from a comparison matrix, customers apply decision strategies. Riedl et al. (2008), for example, summarize and define thirteen important decision strategies (Behavior Research Methods, Vol. 40, No. 3, pp. 795-807). The application of most of these strategies can be facilitated by interactive decision aids like (i) sorting of products, (ii) a conditional drop function, or (iii) performing pairwise comparisons between products (see examples below). This research studies the relationship between decision strategies and the proper interactive decision aid(s). In particular, it addresses the following research question: Which type of interactive decision aid is necessary to support the application of specific decision strategies? The provision of decision aids is important, because they may reduce the effort to apply a particular strategy and/or increase decision accuracy. Based on our conceptual analysis, web designers can tailor systems that offer those decision aids that fit best to their customers’ decision strategy, thereby facilitating decision processes