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SSRN Electronic Journal
Article . 2024 . Peer-reviewed
Data sources: Crossref
https://dx.doi.org/10.48550/ar...
Article . 2024
License: CC BY NC ND
Data sources: Datacite
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Speed, Accuracy, and Complexity

Authors: Gonçalves, Duarte;

Speed, Accuracy, and Complexity

Abstract

This paper re-examines the use of response time to infer problem complexity. It revisits a canonical Wald model of optimal stopping, taking signal-to-noise ratio as a measure of problem complexity. While choice quality is monotone in problem complexity, expected stopping time is inverse U-shaped. Indeed, decisions are fast in both very simple and very complex problems: in simple problems, it is quick to understand which alternative is best, while in complex problems it would be too costly -- an insight which extends to general costly information acquisition models. This non-monotonicity also underlies an ambiguous relationship between response time and ability, whereby higher ability entails slower decisions in very complex problems, but faster decisions in simple problems. Finally, this paper proposes a new method to correctly infer problem complexity based on the finding that distorting incentives in favour of an alternative has a greater effect on choices in more complex problems.

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Keywords

FOS: Economics and business, Economics - Theoretical Economics, Theoretical Economics (econ.TH)

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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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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!
2
Top 10%
Average
Average
Green