Probability and time are integral dimensions of virtually any decision. To treat them together, we consider the prospect of receiving outcome <i>x</i> with a probability <i>p</i> at time <i>t</i>. We define risk and time distance, and show that if these two distances are traded off linearly, then preferences are...

Tight upper bounds for the expected loss of the DEBA (Deterministic-Elimination-By-Aspects) lexicographic selection heuristic are obtained for the case of an additive separable utility function with unknown non-negative, non-increasing attribute weights for numbers of alternatives and attributes...

We generalize and extend the second-order stochastic dominance condition for expected utility to cumulative prospect theory. The new definitions include preferences represented by S-shaped value functions, inverse S-shaped probability weighting functions, and loss aversion. The stochastic...

Reference-dependent preferences have been well accepted in decision sciences, experimental economics, behavioral finance, and marketing. However, we still know very little about how decision makers form and update their reference points given a sequence of information. Our paper provides some...

We consider a decision problem where a group of individuals evaluates multiattribute alternatives. We explore the minimal required agreements that are sufficient to specify the group utility function. A surprising result is that, under some conditions, a bilateral agreement among pairs of...

Several studies have reported high performance of simple decision heuristics multi-attribute decision making. In this paper, we focus on situations where attributes are binary and analyze the performance of Deterministic-Elimination-By-Aspects (DEBA) and similar decision heuristics. We consider...