Multiple-stage decision-making : The effect of planning horizon length on dynamic consistency

  title={Multiple-stage decision-making : The effect of planning horizon length on dynamic consistency},
  author={Joseph G. Johnson and Jerome R. Busemeyer},
Many decisions involve multiple stages of choices and events, and these decisions can be represented graphically as decision trees. Optimal decision strategies for decision trees are commonly determined by a backward induction analysis that demands adherence to three fundamental consistency principles: dynamic, consequential, and strategic. Previous research (Busemeyer et al. 2000, J. Exp. Psychol. Gen. 129, 530) found that decision-makers tend to exhibit violations of dynamic and strategic… CONTINUE READING
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