Goals and plans in decision making

By David H. Krantz, Howard Kunreuther. Judgment and Decision Making, 2007

182 citations recorded by the source corpus.

We propose a constructed-choice model for general decision making. The model departs from utility theory and prospect theory in its treatment of multiple goals and it suggests several different ways in which context can affect choice.It is particularly instructive to apply this model to protective decisions, which are often puzzling. Among other anomalies, people insure against non-catastrophic events, underinsure against catastrophic risks, and allow extraneous factors to influence insurance purchases and other protective decisions. Neither expected-utility theory nor prospect theory can explain these anomalies satisfactorily. To apply this model to the above anomalies, we consider many different insurance-related goals, organized in a taxonomy, and we consider the effects of context on goals, resources, plans and decision rules.The paper concludes by suggesting some prescriptions for improving individual decision making with respect to protective measures.

Subfields: General Decision Sciences, Management Science and Operations Research, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/0d69baab3f17b53adf8c183c401077be5843eaa8

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Citations in the corpus

A Goal-Based Model of Product Evaluation and Choice (2012, background): “…choice model can account for the multifinality effect owing to assumptions about (1) the learning of predictive and activation associations from means to goals and (2) the competitive nature of goal activation (Shah and Kruglanski 2000; Shah et al. 2002; Zhang, Fishbach, and Kruglanski 2007).”
Flood Insurance Coverage in the Coastal Zone (2011, unknown): “(Kunreuther, Sanderson, and Vetschera 1985; Krantz and Kunreuther 2007 ).”
The Role of Insurance in Reducing Losses from Extreme Events: The Need for Public–Private Partnerships (2015, unknown): “4 Cutler and Zeckhauser (2004); Krantz and Kunreuther (2007); Kunreuther et al. (2013c).”
Are Risk Preferences Stable Across Contexts? Evidence from Insurance Data (2011, unknown): “…and Kahneman 2005), in which payments made for purchase (including insurance premiums) are treated as negative gains instead of losses (David H. Krantz and Kunreuther 2007)—does a better job than expected utility theory of explaining observed home deductible choices in data similar to ours.”
Psychology and Global Climate Change: Addressing a Multi-faceted Phenomenon and Set of Challenges A Report by the American Psychological Association's Task Force on the Interface Between Psychology and Global Climate Change Members (2009, methodology): “…behavior (Winett et al., 1982; Aronson & O’Leary, 1983), using messages from friends (e.g., Darley, 1978), employing social marketing techniques (e.g., McKenzie-Mohr & Smith, 1999), and making appeals to prosocial goals (Krantz & Kunreuther, 2007) or social norms (e.g., Cialdini, 2003).”
Decision Making: Factors that Influence Decision Making, Heuristics Used, and Decision Outcomes (2010, background): “Krantz and Kunreuther (2007) posited that a goal and plan based decision making model is an effective and sound approach to take in decision making; in this model, the individual is encouraged to focus on goals, not happiness or usefulness.”