Experimental Investigation of Human Decision Processes in Portfolio Decision Analysis

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Literature Review
  • Financial Portfolio Optimization
  • Resource Allocation
  • Decision Analysis
• Theory of the Experimental Framework
  • Knapsack Optimization Problem
  • Laboratory Experiment
  • Verbal Protocol Analysis
• Methodology
  • Experimental Design
    • Task
    • Participants
    • Experimental Procedure
  • Encoding Process
  • Analyzing Process
• Results
  • Optimality and Iteration
    • Optimality a within heuristic groups
    • Optimality a regarding type of calculation
    • Optimality a regarding verbalizing effects
    • Optimality a with or without overview
    • Iterating steps
  • Heuristics and Metrics
    • Heuristics
    • RRS2 and DRP2
      • Rank-Range-Part (RRS2) and Data-Range-Part (DRP2) with Updating
      • Outcome
    • ARS2
    • Behavioural Aspects

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This research aims to investigate human decision processes in portfolio decision analysis, specifically focusing on the behavioral aspects of knapsack problems. The study aims to bridge the gap between theoretical operations management models and real-world decision-making practices by understanding how individuals intuitively approach resource allocation situations.

• Investigating human decision processes in portfolio decision analysis
• Analyzing behavioral aspects of knapsack problems
• Understanding cognitive strategies employed by individuals in resource allocation situations
• Exploring the connection between theoretical models and practical decision-making
• Identifying and classifying heuristics used in portfolio decision processes

Zusammenfassung der Kapitel (Chapter Summaries)

The research begins with a comprehensive literature review exploring financial portfolio optimization, resource allocation, and decision analysis. This provides a foundational understanding of existing theories and approaches. Chapter 3 introduces the theoretical framework for the experimental study, including a detailed explanation of the knapsack optimization problem, the laboratory experiment design, and the method of verbal protocol analysis. The methodology chapter delves into the experimental design, participant selection, and the procedures employed during the study. The focus is on collecting detailed data through verbal protocol analysis to analyze the cognitive strategies utilized by participants. Chapter 5 presents the findings of the study, analyzing the optimality of participant choices, the heuristics employed, and the behavioral aspects observed. The analysis explores factors such as type of calculation, verbalization effects, and the presence of an overview.

Schlüsselwörter (Keywords)

The primary focus of this research is on human decision processes, portfolio decision analysis, knapsack problems, resource allocation, behavioral aspects, cognitive strategies, heuristics, verbal protocol analysis, and experimental methodology. This research explores the gap between theoretical models and real-world decision-making practices, seeking to understand how individuals approach complex resource allocation situations in a more intuitive and heuristic manner.