Over the years the psychological and economic literature on multi-attribute individual decision-making has focused its attention on examining what class of heuristics better describes subjects’ behaviour. In contrast, motivated by the proliferation of online choice platforms, we investigate whether inducing subjects to use holistic vs. characteristic-based search procedures has an effect on the quality of their decision by proposing a between-subject experiment involving an innovative visual choice task. We find that encouraging subjects to use CBS heuristics as opposed to holistic (...) ones makes them better off. We also examine how subjects’ performance is related with complexity, time pressure, and random choice by running simulations and link our results to the related literature. (shrink)

One of the most impressive changes in economics and decision sciences is the emergence and fast growth of so-called “behavioral” economics and neuroeconomics. These fields raise several methodological issues, some of them being currently intensively discussed. Amongst those issues, the following is prominent : what is the epistemic relevance of non-behavioral or “cognitive” data, i.e. data which bear on cognitive processes and states involved in decision making ? F. Gul and W. Pesendorfer (2005/2008) have vigorously criticized the idea that these (...) data could be relevant for economics and decision sciences. Their criticisms became the focal point of a very active methodological literature. In this paper, we reconstruct and discuss Gul and Pesendorfer’s views and arguments. Although we are not convinced by some of them, we believe the authors hint a genuine issue : the “missing links” issue. (shrink)

Models of intertemporal choice draw on three evaluation rules, which we compare in the restricted domain of choices between smaller sooner and larger later monetary outcomes. The hyperbolic discounting model proposes an alternative-based rule, in which options are evaluated separately. The interval discounting model proposes a hybrid rule, in which the outcomes are evaluated separately, but the delays to those outcomes are evaluated in comparison with one another. The tradeoff model proposes an attribute-based rule, in which both outcomes and delays (...) are evaluated in comparison with one another: People consider both the intervals between the outcomes and the compensations received or paid over those intervals. We compare highly general parametric functional forms of these models by means of a Bayesian analysis, a method of analysis not previously used in intertemporal choice. We find that the hyperbolic discounting model is outperformed by the interval discounting model, which, in turn, is outperformed by the tradeoff model. Our cognitive modeling is among the first to offer quantitative evidence against the conventional view that people make intertemporal choices by discounting the value of future outcomes, and in favor of the view that they directly compare options along the time and outcome attributes. (shrink)