Individuals' Decisions in the Presence of Multiple Goals

32 Pages Posted: 11 Apr 2017

See all articles by Benedict G. C. Dellaert

Benedict G. C. Dellaert

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM)

Joffre Swait

University of South Australia - Institute for Choice

Wiktor L. (Vic) Adamowicz

University of Alberta

Theo A. Arentze

Eindhoven University of Technology (TUE) - Urban Planning Group

Elizabeth Bruch

University of Michigan at Ann Arbor - College of Literature, Science & the Arts; University of Michigan at Ann Arbor - Center for Study of Complex Systems

Elisabetta Cherchi

University of Newcastle

Caspar Chorus

Delft University of Technology - Department of Transport and Logistics

Bas Donkers

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM); Tinbergen Institute

Fred M. Feinberg

University of Michigan at Ann Arbor - Marketing; University of Michigan, Stephen M. Ross School of Business

Anthony Marley

University of South Australia

Linda C. Salisbury

Boston College - Carroll School of Management

Date Written: April 11, 2017

Abstract

This paper develops new directions on how individuals’ use of multiple goals can be incorporated in econometric models of individual decision making. We start by outlining key components of multiple, simultaneous goal pursuit and multi-stage choice. Since different goals are often only partially compatible, such a multiple goal-based approach implies balancing goals, leading to a deliberate goal-level choice strategy on the part of the decision maker. Accordingly, we introduce a conceptual framework to classify different aspects of individuals’ decisions in the presence of multiple goals. Based on this framework we propose a formalization of individual decision making when pursuing multiple goals. We briefly review different previous streams on goal-based decision making and how the proposed goal-driven conceptual framework relates to earlier research in discrete choice models. The framework is illustrated using examples from different domains, in particular marketing, environmental economics, transportation and sociology. Finally, we discuss identification and modeling needs for goal-based choice strategies and opportunities for further research.

Keywords: Decision making, Goal-based decisions, Multi-stage decisions, Choice Modeling, Goal conflict

Suggested Citation

Dellaert, Benedict G. C. and Swait, Joffre and Adamowicz, Wiktor L. (Vic) and Arentze, Theo A. and Bruch, Elizabeth and Cherchi, Elisabetta and Chorus, Caspar and Donkers, Bas and Feinberg, Fred M. and Marley, Anthony and Salisbury, Linda C., Individuals' Decisions in the Presence of Multiple Goals (April 11, 2017). ERIM Report Series Reference, Available at SSRN: https://ssrn.com/abstract=2951028 or http://dx.doi.org/10.2139/ssrn.2951028

Benedict G. C. Dellaert (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Joffre Swait

University of South Australia - Institute for Choice ( email )

Level 13
140 Arthur Street
North Sydney, New South Wales 2060
Australia

Wiktor L. (Vic) Adamowicz

University of Alberta ( email )

Room 501 GSB
Edmonton, Alberta
Canada
780-492-4603 (Phone)
780-492-0268 (Fax)

Theo A. Arentze

Eindhoven University of Technology (TUE) - Urban Planning Group ( email )

Eindhoven
Netherlands

Elizabeth Bruch

University of Michigan at Ann Arbor - College of Literature, Science & the Arts ( email )

Ann Arbor, MI
United States

University of Michigan at Ann Arbor - Center for Study of Complex Systems ( email )

Ann Arbor, MI
United States

Elisabetta Cherchi

University of Newcastle ( email )

5 Barrack Road
Devonshire Building
NEWCASTLE UPON TYNE, NE1 7RU
United Kingdom

Caspar Chorus

Delft University of Technology - Department of Transport and Logistics ( email )

Jaffalaan 5
NL-2628BX
Delft
Netherlands

Bas Donkers

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
Rotterdam, NL 3000 DR
Netherlands
+31 10 408 2411 (Phone)
+31 10 408 9169 (Fax)

HOME PAGE: http://https://www.eur.nl/en/people/bas-donkers

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 408 2411 (Phone)
+31 10 408 9169 (Fax)

HOME PAGE: http://https://www.eur.nl/en/people/bas-donkers

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Fred M. Feinberg

University of Michigan at Ann Arbor - Marketing ( email )

Ann Arbor, MI 48109
United States

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Anthony Marley

University of South Australia ( email )

37-44 North Terrace, City West Campus
Adelaide, South Australia 5001
Australia

Linda C. Salisbury

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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