How Robust is the Theory of Consumer Choice in the Face of Discrete Goods with Multiple Attributes: An Experimental Approach

摘要

The objective of this study is to examine how individuals make choices when faced with discrete multi-attribute goods. Laboratory methods are utilized to obtain controlled experimental data and test specific hypotheses. The main results are that: (a) the relative tradeoff between the attributes is a significant treatment variable, and (b) the majority of experimental subjects adopt heuristics that approximate the optimal solution to a complex linear programming problem. Further, the subjects rarely choose a fixed payoff option with a known payoff and low decision cost, even when the fixed payoff is 80% of the maximum possible under the decision-making task.