Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/233165
Authors: 
Kourouxous, Thomas
Bauer, Thomas
Year of Publication: 
2019
Citation: 
[Journal:] Business Research [ISSN:] 2198-2627 [Volume:] 12 [Year:] 2019 [Issue:] 1 [Pages:] 209-239
Abstract: 
A key premise underlying most of the economic literature is that rational decision-makers will choose dominant strategies over dominated alternatives. However, prior literature in various disciplines including business, psychology, and economics document a series of phenomena associated with violations of the dominance principle in decision-making. In this comprehensive review, we discuss conditions under which people violate the dominance principle in decision-making. When presenting violations of dominance in empirical and experimental studies, we differentiate between absolute, statewise, and stochastic (first- and second-order) violations of dominance. Furthermore, we categorize the literature by the leading causes for dominance violations: framing, reference points, certainty effects, bounded rationality, and emotional responses.
Subjects: 
Decision theory
Absolute dominance
Statewise dominance
First-order stochastic dominance
Second-order stochastic dominance
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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