Screen LibraryConsumer optimization problem solving /
What algorithms are tractable depends on the speed of the processor. Given the speed of digital computers, polynomial algorithms are considered tractable. But, a human can take several seconds to make one binary comparison between two pens. Given this slow speed, sublinear algorithms are considered...
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| Main Authors: | |
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| Corporate Authors: | |
| Published: |
World Scientific Pub. Co.,
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| Publisher Address: | Singapore ; Hackensack, N.J. : |
| Publication Dates: | 2015. |
| Literature type: | eBook |
| Language: | English |
| Subjects: | |
| Online Access: |
http://www.worldscientific.com/worldscibooks/10.1142/9393#t=toc |
| Summary: |
What algorithms are tractable depends on the speed of the processor. Given the speed of digital computers, polynomial algorithms are considered tractable. But, a human can take several seconds to make one binary comparison between two pens. Given this slow speed, sublinear algorithms are considered tractable for an unaided human and this defines Simon's concept of bounded rationality. Humans make simplifications to solve the intractable consumer optimization problem. Consumers search for goods and services item-by-item, which greatly reduces the number of alternatives to consider. In addition, consumers have operators that can process a set in a single operation. Also, consumers budget by incremental adjustment. In considering consumer performance the question to ask is how close to optimal is consumer performance and not whether consumers optimize as a yes/no question. Given the ordinal nature of utility theory this creates a basic measurement problem. The book presents a review of the literature on consumer performance. This is an opportune time to study consumer procedures because the Internet provides a media to make substantial improvements in consumer performance. The book includes a case study comparing the performance of a digital camera selection code with the advice of sales people. A field experiment demonstrates that the software code provides better advice. |
| Carrier Form: | 1 online resource (ix,239pages) : illustrations |
| Bibliography: | Includes bibliographical references (pages 227-235) and index. |
| ISBN: | 9789814635295 |
| Index Number: | HF5415 |
| CLC: | F713.55 |
| Contents: | 1. Introduction. 1.1. Introduction. 1.2. Computational complexity and consumers. 1.3. Component studies. 1.4. Item search and budgeting. 1.5. How close to optimal and better performance -- 2. Computational complexity. 2.1. Introduction. 2.2. Computational complexity. 2.3. Discrete consumer problem. 2.4. Bounded-rational human procedures -- 3. Ordering. 3.1. Introduction. 3.2. Computer ordering. 3.3. Experimental ordering design. 3.4. Observations. 3.5. Analysis of algorithms. 3.6. Additional analysis. 3.7. Concluding remarks -- 4. Computational complexity: decision rules. 4.1. Introduction. 4.2. Linear item search. 4.3. A sublinear item search. 4.4. Market organization. 4.5. Conclusions -- 5. Repeated price search. 5.1. Introduction. 5.2. Experiments. 5.3. Buying textbooks online. 5.4. Conclusion -- 6. Repeated item search: forecasting. 6.1. Introduction. 6.2. Forecasts, judgments, knowledge, and data. 6.3. Sequential trial and error, STE strategy. 6.4. Forecasting with data provided by others. 6.5. Search variation across consumers. 6.6. Conclusions -- 7. Repeated item search: choice. 7.1. Introduction. 7.2. Steps: sets. 7.3. Steps: preferred item from final set. 7.4. Search efficiency: jeans. 7.5. Conclusions -- 8. Budgeting. 8.1. Introduction. 8.2. Budgeting surveys. 8.3. Budget procedures. 8.4. Monitoring. 8.5. Adjustment process. 8.6. Conclusion -- 9. How close to optimal? 9.1. Introduction. 9.2. Reference model. 9.3. The measurement problem. 9.4. Tests of utility theory. 9.5. Simplification performance. 9.6. Overall assessment -- 10. Improving consumer performance. 10.1. Introduction. 10.2. Government and consumers. 10.3. Business and consumers. 10.4. Near term changes. 10.5. Long term improvements. 10.6. Research. 10.7. Conclusion. |