A Two-step Decision Making Model

DOI

10.2991/emtc-14.2014.81How to use a DOI?

Keywords

two-step decision-making, strategic plan, endogenetic time preference, self control.

Abstract

EDU framework has both ideological and empirical defects for it only considers one link of the whole decision-making process ignoring another link of selection of stage goal and ‘strategic’ plan, which plays an important role in the direction and affects the following allocation of specific resources. By investigating people's decision behavior, a two-step decision making model is developed on the basis of EDU framework and TRP theory to illustrate a decision-maker’s thinking and behavior characteristics. Introduction of value function of three reference points and strategic plan make the process of choice more realistic than utility function and more crucial to explain the chosen results. In addition, self-control problem is incorporated into the model to relax the underlying assumption of plan’s being fully implemented, which makes decision more implementable and effective.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Gao Kao
AU  - Nian Min
PY  - 2014/04
DA  - 2014/04
TI  - A Two-step Decision Making Model
BT  - Proceedings of the 2014 International Conference on Economic Management and Trade Cooperation
PB  - Atlantis Press
SP  - 483
EP  - 488
SN  - 1951-6851
UR  - https://doi.org/10.2991/emtc-14.2014.81
DO  - 10.2991/emtc-14.2014.81
ID  - Kao2014/04
ER  -