Priority heuristic (original) (raw)
The priority heuristic is a simple, lexicographic decision strategy that correctly predicts classic violations of expected utility theory such as the Allais paradox, the four-fold pattern, the certainty effect, the possibility effect, or intransitivities. The heuristic maps onto Rubinstein’s three-step model, according to which people first check dominance and stop if it is present, otherwise they check for dissimilarity. To highlight Rubinstein’s model consider the following choice problem: I: 50% chance to win 2,000 50% chance to win nothing II: 52% chance to win 1,000 48% chance to win nothing
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| dbo:abstract | The priority heuristic is a simple, lexicographic decision strategy that correctly predicts classic violations of expected utility theory such as the Allais paradox, the four-fold pattern, the certainty effect, the possibility effect, or intransitivities. The heuristic maps onto Rubinstein’s three-step model, according to which people first check dominance and stop if it is present, otherwise they check for dissimilarity. To highlight Rubinstein’s model consider the following choice problem: I: 50% chance to win 2,000 50% chance to win nothing II: 52% chance to win 1,000 48% chance to win nothing Dominance is absent, and while chances are similar monetary outcomes are not. Rubinstein’s model predicts that people check for dissimilarity and consequently choose Gamble I. Unfortunately, dissimilarity checks are often not decisive, and Rubinstein suggested that people proceed to a third step that he left unspecified. The priority heuristic elaborates on Rubinstein’s framework by specifying this Step 3. (en) |
| dbo:wikiPageExternalLink | http://library.mpib-berlin.mpg.de/ft/eb/EB_Priority_2006.pdf |
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| dbo:wikiPageWikiLink | dbr:Model dbr:Allais_paradox dbr:Cumulative_prospect_theory dbr:Decision_theory dbr:Lexicography dbr:Prospect_theory dbr:Mathematics dbr:Combinatorics dbc:Heuristics dbr:Amos_Tversky dbr:Daniel_Kahneman dbr:Economics dbr:Strategic_dominance dbr:Probability dbr:Ariel_Rubinstein dbr:Heuristic dbr:Homogeneity_and_heterogeneity dbr:Free_parameter dbr:Certainty_effect dbr:Minimax dbr:Expected_utility_theory |
| dct:subject | dbc:Heuristics |
| rdfs:comment | The priority heuristic is a simple, lexicographic decision strategy that correctly predicts classic violations of expected utility theory such as the Allais paradox, the four-fold pattern, the certainty effect, the possibility effect, or intransitivities. The heuristic maps onto Rubinstein’s three-step model, according to which people first check dominance and stop if it is present, otherwise they check for dissimilarity. To highlight Rubinstein’s model consider the following choice problem: I: 50% chance to win 2,000 50% chance to win nothing II: 52% chance to win 1,000 48% chance to win nothing (en) |
| rdfs:label | Priority heuristic (en) |
| owl:sameAs | wikidata:Priority heuristic https://global.dbpedia.org/id/AM8Kp |
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