Business & Information Systems Engineering

, Volume 6, Issue 3, pp 165–175 | Cite as

A Self-regulating Information Acquisition Algorithm for Preventing Choice Regret in Multi-perspective Decision Making

  • Francisco J. Santos-Arteaga
  • Debora Di Caprio
  • Madjid Tavana
Aufsatz

Abstract

In a world filled with an increasing number of choices people must carefully select the information they acquire in order to make sound decisions that they will not regret in the future. This ranges from everyday life decisions to those made by experts in the business world. The authors introduce a novel information acquisition algorithm based on the value that information has when preventing a decision maker from regretting his or her current decision. The main features of the model include the capacity to account for different risk attitudes of the decision maker as well as his or her forward-looking behavior, the ability to assess choice objects (projects or products) defined by multiple characteristics and a self-regulation mechanism for the information acquisition process, even in the absence of information acquisition costs. The main properties of the algorithm are examined numerically.

Keywords

Sequential information acquisition Value of information Choice regret Utility theory 

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Copyright information

© Springer Fachmedien Wiesbaden 2014

Authors and Affiliations

  • Francisco J. Santos-Arteaga
    • 1
  • Debora Di Caprio
    • 2
    • 3
  • Madjid Tavana
    • 4
    • 5
  1. 1.Departamento de Economía Aplicada II and Instituto Complutense de Estudios InternacionalesUniversidad Complutense de MadridPozueloSpain
  2. 2.Department of Mathematics and StatisticsYork UniversityTorontoCanada
  3. 3.Polo Tecnologico IISS G. GalileiBolzanoItaly
  4. 4.Business Systems and Analytics Department, Lindback Distinguished Chair of Information Systems and Decision SciencesLa Salle UniversityPhiladelphiaUSA
  5. 5.Business Information Systems Department, Faculty of Business Administration and EconomicsUniversity of PaderbornPaderbornGermany

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