On rational behavior in multi-attribute riskless choice

Pekka Korhonen, Jyrki Wallenius, Tolga Genc and Peng Xu

European Journal of Operational Research, 2021, vol. 288, issue 1, 331-342

Abstract: We theoretically compare and contrast two commonly used types of choice strategies in a riskless, multi-attribute setting: (1) the win-win (or Pareto improving) strategy, and (2) the tradeoff strategy. Both strategies can be used and are used in Multiple Criteria Decision Making theory and practice. In the win-win strategy, consumers (or decision-makers) consider, which goods they want to add to their basket. In the tradeoff strategy consumers make pairwise choices between different (efficient) baskets, where they have to give up in some goods to gain in other goods.

Keywords: Choice behavior; Multiple criteria decision making; Riskless choice; Win-win; Tradeoff; Loss aversion; Decreasing marginal values (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:288:y:2021:i:1:p:331-342

DOI: 10.1016/j.ejor.2020.05.056

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