Decisions under Uncertainty: Action-Hesitancy Model

21 Pages Posted: 17 Nov 2014 Last revised: 12 Sep 2015

See all articles by Zeljka Buturovic

Zeljka Buturovic

The Institute of Social Sciences (Serbia)

Slavisa Tasic

University of Mary

Date Written: November 15, 2014

Abstract

Neoclassical and behavioral economics rest on consequentialist maximization models of decision-making. This approach has been criticized for both the lack of realism and empirical inconsistencies but there are few viable substitutes. We propose a novel decision-making theory, the action-hesitancy model, aimed at articulating a non-consequentialist alternative to present models. According to this model, instead of maximizing any particular goal, agents strive to achieve cognitive clarity when making a decision. When hesitant, they seek new information in order to transform the appraisal of their situation in such a way as to make the course of action obvious. We argue that the action-hesitancy model is a realistic representation of decision-making capable of addressing a broad class of behavioral phenomena.

Keywords: choice; decision making; expected utility; prospect theory; rationality

JEL Classification: B41, B530, D03, D81

Suggested Citation

Buturovic, Zeljka and Tasic, Slavisa, Decisions under Uncertainty: Action-Hesitancy Model (November 15, 2014). Available at SSRN: https://ssrn.com/abstract=2524830 or http://dx.doi.org/10.2139/ssrn.2524830

Zeljka Buturovic

The Institute of Social Sciences (Serbia) ( email )

Kraljice Natalije 45 (Narodnog Fronta 45)
P. O. BOX 605
Beograd, 11000
Serbia

Slavisa Tasic (Contact Author)

University of Mary ( email )

Bismarck, ND
United States
7013558025 (Phone)
7013558025 (Fax)

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