Dave had been looking for an interior decorator. He found a few good options but hired the person who was most comfortable with dogs, even though some of the other decorators had more positive online reviews. Dave does not want to have to put his large, elderly dog outside while the decorator is working, and he's not willing to compromise on that point. What type of decision rule did Dave use to pick an interior decorator?

Answer :

Answer: Noncompensatory rule

Explanation: When making choices, individuals can follow alternative strategies or decision rules to the traditional compensatory utility maximization, raising doubts about to what extent these choices can be used to elicit preferences. A Noncompensatory rules suggest that positive and negative consequences of alternatives do not compensate for each other.

Other Questions