Violations of dominance in decision-making

Artikel

A key premise underlying most of the economic literature is that rational decision-makers will choose dominant strategies over dominated alternatives. However, prior literature in various disciplines including business, psychology, and economics document a series of phenomena associated with violations of the dominance principle in decision-making. In this comprehensive review, we discuss conditions under which people violate the dominance principle in decision-making. When presenting violations of dominance in empirical and experimental studies, we differentiate between absolute, statewise, and stochastic (first- and second-order) violations of dominance. Furthermore, we categorize the literature by the leading causes for dominance violations: framing, reference points, certainty effects, bounded rationality, and emotional responses.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Business Research ; ISSN: 2198-2627 ; Volume: 12 ; Year: 2019 ; Issue: 1 ; Pages: 209-239 ; Heidelberg: Springer

Classification and Topics

• Classification: Management
• Subject: Decision theory ; Absolute dominance ; Statewise dominance ; First-order stochastic dominance ; Second-order stochastic dominance

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kourouxous, Thomas ; Bauer, Thomas
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2019

Further information

• DOI: doi:10.1007/s40685-019-0093-7
• Handle: http://hdl.handle.net/10419/233165
• Last update: 10.03.2025, 11:44 AM CET