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SSRN Electronic Journal
Article . 2014 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2014
Data sources: EconStor
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Reason, Intuition, and Time

Authors: Sahm, Marco; Weizsäcker, Robert K. von;

Reason, Intuition, and Time

Abstract

We study the influence of reason and intuition on decision making over time. Facing a sequence of similar problems, agents can either decide rationally according to expected utility theory or intuitively according to case-based decision theory. Rational decisions are more precise but create higher costs, though these costs may decrease over time. We find that intuition will outperform reason in the long run if individuals are sufficiently ambitious. Moreover, intuitive decisions are prevalent in early and late stages of a learning process, whereas reason governs decisions in intermediate stages. Examples range from playing behavior in games like Chess to professional decisions during a manager's career.

Country
Germany
Keywords

learning, ddc:330, expected utility theory, expected utility theory, case-based decision theory, cognitive costs, learning, D81, D83, case-based decision theory, C63, cognitive costs, jel: jel:D81, jel: jel:C63, jel: jel:D83

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
bronze