Decomposition patterns in problem solving

Abstract: The paper develops a theory of biases in decision making. Discovering a strategy for solving a game is a complex problem that may be solved by decomposition; a player decomposing a problem into many simple sub- problems may easily identify the optimal solution to each sub-problem: however it is shown that even though all partial solutions are optimal, the solution to the global problem may be largely sub-optimal. The conditions under which a decomposition process gives rise to a sub- optimal solution are explored, and it is shown that the sub-optimalities ultimately originate from the process of categorization that governs the creation of a decomposition pattern. Decisions based on a strategy discovered by decomposition are therefore frequently biased . The persistence of biased behaviours, observed in many experiments, is explained by showing the stability of different and non optimal representations of the same problem. An application to a simplified version of Rubik cube is finally developed.

JEL-codes: C9 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-cmp, nep-exp, nep-gth, nep-hpe and nep-mic
Date: Written 2003-09-22
Note: Type of Document - Pdf; prepared on PC ; to print on PostScript; pages: 38 ; figures: included
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http://129.3.20.41/eps/exp/papers/0309/0309003.pdf (application/pdf)

Related works:
Working Paper: Decomposition patterns in problem solving (2003)
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