Can a linear value function explain choices? An experimental study

Pekka Korhonen, Kari Silvennoinen, Jyrki Wallenius and Anssi Öörni

European Journal of Operational Research, 2012, vol. 219, issue 2, 360-367

Abstract: We investigate in a simple bi-criteria experimental study, whether subjects are consistent with a linear value function while making binary choices. Many inconsistencies appeared in our experiment. However, the impact of inconsistencies on the linearity vs. non-linearity of the value function was minor. Moreover, a linear value function seems to predict choices for bi-criteria problems quite well. This ability to predict is independent of whether the value function is diagnosed linear or not. Inconsistencies in responses did not necessarily change the original diagnosis of the form of the value function. Our findings have implications for the design and development of decision support tools for Multiple Criteria Decision Making problems.

Keywords: Linear value function; Inconsistency; Multiple criteria; Weights; Binary choices (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:219:y:2012:i:2:p:360-367

DOI: 10.1016/j.ejor.2011.12.040

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