Decision making when choices are complex: a test of Heiner's hypothesis
Document Type
Article
Date of Original Version
1-1-1995
Abstract
This paper explores Heiner's hypothesis concerning a gap between the cognitive ability of decision makers and the difficulty of decisions (the C-D gap). The implications of decision heuristics for coefficient estimates when uncertainty is faced by decision makers is discussed, where the level of uncertainty varies with complexity. Statistical analysis strongly supports the presence of a C-D gap and provides evidence supporting the use of decision heuristics. The results of both direct and indirect methods suggest that mixed decision strategies may be used. It is also found that complexity effects can have important implications for welfare analysis. -Authors
Publication Title, e.g., Journal
Land Economics
Volume
71
Issue
4
Citation/Publisher Attribution
Mazzotta, M. J., and J. J. Opaluch. "Decision making when choices are complex: a test of Heiner's hypothesis." Land Economics 71, 4 (1995). doi: 10.2307/3146714.