A Game Theoretic Model of Choosing a Valuable Good via a Short List Heuristic

Abstract

The Internet gives access to a huge amount of data at the click of a mouse. This is very helpful when consumers are making decisions about which product to buy. However, the final decision to purchase is still generally made by humans who have limited memory and perception. The short list heuristic is often used when there are many offers on the market. Searchers first find information about offers via the Internet and on this basis choose a relatively small number of offers to view in real life. Although such rules are often used in practice, little research has been carried out on determining, for example, what the size of the short list should be depending on the parameters of the problem or modelling how the short list heuristic can be implemented when there are multiple decision makers. This article presents a game theoretic model of such a search procedure with two players. These two players can be interpreted, for example, as a couple searching for a flat or a second-hand car. The model indicates that under such a search procedure the roles of searchers should only be divided when the preferences of the players are coherent or there is a high level of goodwill between them. In other cases, dividing the roles leads to a high level of conflict.

Plenty of Fish in the Sea: Divorce Choice and the Quality of Singles

“…The applications of such models are numerous, including an optimal job search (two-sided), selling and buying assets, purchasing long-term assets such as apartments, cars, etc. [40,41]. In our model, the decision maker is assumed to be rational when making decisions in optimal stopping problems and when choosing the strategies to marry or to divorce by comparing his/her utilities under different scenarios.…”

Assessing the Usability of User Interfaces Game Tapel Saga Through Heuristics Evaluation

“…Heuristic evaluation is a process to measure the usability of the user interface independently (Khan and Singh 2017;Lezama et al 2019). Issues discovered will help the design team from the very beginning of game development improve product usability (Hochleitner et al 2015;Ramsey 2020).…”

The EU ETS Top Ten Polluters List as a Policy Tool of Climate Action Organisations

“…As a shortlist, the EU ETS top ten benefits from the effects related to heuristics in decision-making process (Ramsey 2020). Shortlisting procedure as a behavioural model is thoroughly investigated in both psychology and economy.…”