Hsiao, Yu Chin and Kemp, Simon and Servátka, Maroš (2019): On the Importance of Context in Sequential Decision-Making.
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Abstract
We experimentally investigate whether framing an individual-choice decision in a market setting results in a different outcome than when the decision is described in a context-free frame. We further explore whether the context effect is triggered by the frame itself or whether a richer descriptive content is required to establish familiarity with the decision-making environment. Understanding what constitutes context is central to formulating practical recommendations aiming to improve the quality of individual decisions. Our results show that framing a sequential search problem as selling houses leads to better decisions than a context-free frame. Manipulating whether or not the framed decision-making scenario includes a description of the house, which would be naturally available in a real estate market, does not impact the length of search or the total earnings.
Item Type: | MPRA Paper |
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Original Title: | On the Importance of Context in Sequential Decision-Making |
Language: | English |
Keywords: | Schema Activation, Secretary Problem, Sequential Search, Context, Framing, Decision-Making |
Subjects: | C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness |
Item ID: | 94027 |
Depositing User: | Maroš Servátka |
Date Deposited: | 21 May 2019 08:45 |
Last Modified: | 26 Sep 2019 14:25 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/94027 |
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