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Choice Problem (choice + problem)
Selected AbstractsPopulation Monotonicity and Egalitarianism for Binary Social Choice ProblemsJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 3 2001Youngsub Chun We consider the class of binary social choice problems. A society must choose one of two public projects, money being available to perform side payments and each agent having quasi-linear preferences. Moulin (1987, Quarterly Journal of Economics102, 769,783) formulates the problem and characterizes the egalitarian solution on the basis of agreement. This axiom requires that changes in the preferences of some members of the society should affect the agents whose preferences have not changed in the same direction; all gain or all lose. In this paper, we present an alternative characterization of the egalitarian solution on the basis of population monotonicity. This axiom requires that upon the arrival of new agents, all of the original agents should be affected in the same direction; all gain or all lose. [source] The impact of problem size on decision processes: an experimental investigation on very large choice problems with support of decision support systemsEXPERT SYSTEMS, Issue 2 2004H. Wang Abstract: Choice problems as a class of decision problems have attracted great attention for the last couple of decades. Among the frameworks and supporting theories used in their study, two have had the greatest impact: bounded rationality and cost,benefit. Both theories could find support from past empirical studies under different conditions or problem environments. In the past studies, problem size has been shown to play an important role in decision-making. As problem size increases, a decision process may be detoured and the decision outcome may be different. In this paper we investigate the impact of problem size on three important aspects of the computer-aided decision process , strategy selection, decision time/effort, and decision quality , through very large choice problems. [source] Global Risk, Investment and EmotionsECONOMICA, Issue 307 2010RONALD BOSMAN We investigate a novel dynamic choice problem in an experiment where emotions are measured through self-reports. The choice problem concerns the investment of an amount of money in a safe option and a risky option when there is a ,global risk' of losing all earnings, from both options, including any return from the risky option. Our key finding is that global risk can reduce the amount invested in the risky option. This result cannot be explained by Expected Utility or by its main contenders, Rank-Dependent Utility and Cumulative Prospect Theory. An explanation is offered by taking account of emotions, using the emotion data from the experiment and recent psychological findings. [source] A risk-averse user equilibrium model for route choice problem in signal-controlled networksJOURNAL OF ADVANCED TRANSPORTATION, Issue 4 2010William H.K. Lam Abstract This paper proposes a new risk-averse user equilibrium (RAUE) model to estimate the distribution of traffic flows over road networks with taking account the effects of accident risks due to the conflicting traffic flows (left- and right-turning and through traffic flows) at signalized intersections. It is assumed in the proposed model that drivers consider simultaneously both the travel time and accident risk in their route choices. The accident risk of a route is measured by the potential accident rate on that route. The RAUE conditions are formulated as an equivalent path-based variational inequality problem which can be solved by a path-based solution algorithm. It is shown that the traditional user equilibrium (UE) model is in fact a special case of the proposed model. A numerical example on a grid network is used to illustrate the application of the proposed model and to compare the results with the conventional UE traffic assignment. Numerical results show that the traditional UE model may underestimate the total system travel time and overestimate the system accident rate. Sensitivity tests are also carried out to assess the effects of drivers' preferences, signal control parameters (i.e., green time proportions), and various network demand levels on the route choice problem. Copyright © 2010 John Wiley & Sons, Ltd. [source] Small feedback-based decisions and their limited correspondence to description-based decisionsJOURNAL OF BEHAVIORAL DECISION MAKING, Issue 3 2003Greg Barron Abstract The present paper explores situations in which the information available to decision makers is limited to feedback concerning the outcomes of their previous decisions. The results reveal that experience in these situations can lead to deviations from maximization in the opposite direction of the deviations observed when the decisions are made based on a description of the choice problem. Experience was found to lead to a reversed common ratio/certainty effect, more risk seeking in the gain than in the loss domain, and to an underweighting of small probabilities. Only one of the examined properties of description-based decisions, loss aversion, seems to emerge robustly in these ,feedback-based' decisions. These results are summarized with a simple model that illustrates that all the unique properties of feedback-based decisions can be a product of a tendency to rely on recent outcomes. Copyright © 2003 John Wiley & Sons, Ltd. [source] The Political Power of the Retirees in a Two-Dimensional Voting ModelJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 4 2003Georges Casamatta We show that the retirees are able to obtain favorable pension policies whereas they belong to a minority in the population. The argument relies on the multidimensional nature of the political process. We consider a two-dimensional collective choice problem. The first of these choices is the level of the contribution rate to the Pay-As-You-Go pension system. The second is a noneconomic decision, unrelated to the pension system. Using a political agency model, we show that, as soon as the retirees are sufficiently numerous, the equilibrium tax rate may be higher than the tax rate preferred by the young, who yet constitute a majority over the pension issue. [source] Portfolio Choice and Life Insurance: The CRRA CaseJOURNAL OF RISK AND INSURANCE, Issue 4 2008Huaxiong Huang We solve a portfolio choice problem that includes life insurance and labor income under constant relative risk aversion (CRRA) preferences. We focus on the correlation between the dynamics of human capital and financial capital and model the utility of the family as opposed to separating consumption and bequest. We simplify the underlying Hamilton,Jacobi,Bellman equation using a similarity reduction technique that leads to an efficient numerical solution. Households for whom shocks to human capital are negatively correlated with shocks to financial capital should own more life insurance with greater equity/stock exposure. Life insurance hedges human capital and is insensitive to the family's risk aversion, consistent with practitioner guidance. [source] Optimisation and the selection of conservation contracts*AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 1 2007Stefan Hajkowicz This paper explores alternative techniques for the selection of conservation contracts under competitive tendering programs. Under these programs, purchasing decisions are often based on the benefits score and cost for proposed projects. The optimisation problem is to maximise the aggregate benefits without exceeding the budget. Because the budget rarely permits all projects to be funded, there is a binary choice problem, known in the operations research published work as a knapsack problem. The decision-maker must choose which projects are funded and which are not. Under some circumstances, the knapsack problem can be unsolvable because computational complexity increases exponentially with the number of projects. This paper explores the use of several decision rules for solving the optimisation problem including the use of advanced meta-heuristics. It is shown that commonly applied techniques for project selection may not be providing the optimal solution. Improved algorithms can increase the environmental programs benefits and staying within budget. The comparison of algorithms is based on real data from the Western Australian Conservation Auction. [source] The impact of problem size on decision processes: an experimental investigation on very large choice problems with support of decision support systemsEXPERT SYSTEMS, Issue 2 2004H. Wang Abstract: Choice problems as a class of decision problems have attracted great attention for the last couple of decades. Among the frameworks and supporting theories used in their study, two have had the greatest impact: bounded rationality and cost,benefit. Both theories could find support from past empirical studies under different conditions or problem environments. In the past studies, problem size has been shown to play an important role in decision-making. As problem size increases, a decision process may be detoured and the decision outcome may be different. In this paper we investigate the impact of problem size on three important aspects of the computer-aided decision process , strategy selection, decision time/effort, and decision quality , through very large choice problems. [source] Population Monotonicity and Egalitarianism for Binary Social Choice ProblemsJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 3 2001Youngsub Chun We consider the class of binary social choice problems. A society must choose one of two public projects, money being available to perform side payments and each agent having quasi-linear preferences. Moulin (1987, Quarterly Journal of Economics102, 769,783) formulates the problem and characterizes the egalitarian solution on the basis of agreement. This axiom requires that changes in the preferences of some members of the society should affect the agents whose preferences have not changed in the same direction; all gain or all lose. In this paper, we present an alternative characterization of the egalitarian solution on the basis of population monotonicity. This axiom requires that upon the arrival of new agents, all of the original agents should be affected in the same direction; all gain or all lose. [source] Solidarity and Probabilistic Target RulesJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 2 2001Lars Ehlers We consider a probabilistic approach to collective choice problems where a group of agents with single-peaked preferences have to decide on the level or location of a public good. We show that every probabilistic rule that satisfies Pareto efficiency and "solidarity" (population-monotonicity or replacement-domination) must equal a so-called target rule. [source] Climate change: a rational choice politics view,AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 3 2009Geoffrey Brennan Reduction in carbon dioxide emissions constitutes a global public good; and hence there will be strong incentives for countries to free ride in the provision of CO2 emission reductions. In the absence of more or less binding international agreements, we would expect carbon emissions to be seriously excessive, and climate change problems to be unsolvable. Against this obvious general point, we observe many countries acting unilaterally to introduce carbon emission policies. That is itself an explanatory puzzle, and a source of possible hope. Both aspects are matters of ,how politics works', i.e. ,public choice' problems are central. The object of this paper is to explain the phenomenon of unilateral policy action and to evaluate the grounds for ,hope'. One aspect of the explanation lies in the construction of policy instruments that redistribute strategically in favour of relevant interests. Another is the ,expressive' nature of voting and the expressive value of environmental concerns. Both elements , elite interests and popular (expressive) opinion , are quasi-constraints on politically viable policy. However, the nature of expressive concerns is such that significant reductions in real GDP are probably not sustainable in the long term , which suggests that much of the CO2 reduction action will be limited to modest reductions of a largely token character. In that sense, the grounds for hope are, although not non-existent, decidedly thin. [source] | |||||||||||||