Can a linear value function explain choices? An experimental study

We investigate in a simple bi-criteria experimental study, whether subjects are consistent with a linear value function while making binary choices. Many inconsistencies appeared in our experiment. However, the impact of inconsistencies on the linearity vs. non-linearity of the value function was minor. Moreover, a linear value function seems to predict choices for bi-criteria problems quite well. This ability to predict is independent of whether the value function is diagnosed linear or not. Inconsistencies in responses did not necessarily change the original diagnosis of the form of the value function. Our findings have implications for the design and development of decision support tools for Multiple Criteria Decision Making problems.

► Humans are not very often fully consistent with a linear value function. ► However, by suitably purging 10% of responses, a majority of them become consistent. ► Re-scaling the criterion values did not have an impact on the consistency of choices. ► In spite of many inconsistent choices, our weight estimation method is quite robust.