We show how to calibrate a prospect model of decision making under risk for an individual. The prospect model is empirically compared to a utility model on two criteria, verification of the postulates of each model, and predictive accuracy. The empirical comparison is performed via three...

Random coefficients choice models are seeing widespread adoption in marketing research, partly because of their ability to generate household-level parameter estimates with limited data. However, the power of such models may tempt researchers to trust that they continue to produce reasonable...

Managers often employ market response models as decision aids and historical information of competitors' market outcomes to aid their competitive decisions in oligopolistic settings. However, little is known about how access to a decision aid or the availability of competitors' market outcomes...

We introduce a modification of the discounted utility model that accounts for both satiation and habit formation in intertemporal choice. Preferences depend on the satiation level and the habitual consumption level. These two state variables, together with the shape of the value function, drive...

Incentive plans are an integral part of management control since incentives as measures of recognition of performance are significant motivating factors for corporate executives. In this paper we describe how such incentive plans can be devised. We employ multiattribute preference theory in the...

Prior studies have shown that individuals are averse to ambiguity in probability. Many decisions are, however, made in market settings where an individual's decision is influenced by decisions of others participating in the market. In this paper, we extend the previous research to evaluate the...

Most scheduling research has considered optimizing a single performance measure (criterion). In this paper we consider the problem of scheduling jobs on a single machine when the desirability of a schedule is evaluated using more than one performance measure. The procedures developed here can be...

This paper is the first of a two-paper study of fairness issues for decisions that affect the benefits received and the risks encountered by a population. The study examines fairness for individuals and for homogeneous groups within the population. It considers fairness both for population...

An approach is proposed that is useful for long term forecasting of market penetration of new technologies, fuel price and availability, business performance, etc. The central idea is to systematically solicit experts' opinion in the form of subjective probability distributions in making future...

Dispersive equity is concerned with the impact of life-threatening risks from alternative policy decisions on homogeneous groups in a population. It is not addressed to the disutility of various numbers of fatalities that might occur, but rather to how fatalities are distributed over the groups....