An experiment on case-based decision making

Brit Grosskopf, Rajiv Sarin and Elizabeth Watson

Theory and Decision, 2015, vol. 79, issue 4, 639-666

Abstract: We experimentally investigate the disposition of decision makers to use case-based reasoning as suggested by Hume (An enquiry concerning human understanding, 1748 ) and formalized by case-based decision theory (Gilboa and Schmeidler in Q J Econ 110:605–639, 1995 ). Our subjects face a monopoly decision problem about which they have very limited information. Information is presented in a manner which makes similarity judgements according to the feature matching model of Tversky (Psychol Rev 84:327–352, 1977 ) plausible. We provide subjects a “history” of cases. In the $$2\times 2$$ 2 × 2 between-subject design, we vary whether information about the current market is given and whether immediate feedback about obtained profits is provided. The results provide support for the predictions of case-based decision theory, particularly when no immediate feedback is provided. Copyright Springer Science+Business Media New York 2015

Keywords: Case-based decision making; Case-based reasoning; Heuristics; Limited information environments; Similarity (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:theord:v:79:y:2015:i:4:p:639-666

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DOI: 10.1007/s11238-015-9492-1

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