The effect of incentive structure on search in the secretary problem
We tested the effectiveness of performance-based incentive structures using three incentive structures --- commission base, best only and flat fee --- and two levels of context --- no context and house-selling --- in an experiment in which participants made decisions in a variant of the secretary pr...
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Society for Judgment and Decision Making
2020-01-01
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| Series: | Judgment and Decision Making |
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| Online Access: | http://journal.sjdm.org/19/190423/jdm190423.pdf |
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doaj-89a06e6cd8a8428caa237b3284def5592021-05-02T21:57:50ZengSociety for Judgment and Decision MakingJudgment and Decision Making1930-29752020-01-011518292The effect of incentive structure on search in the secretary problemYu-Chin HsiaoSimon KempWe tested the effectiveness of performance-based incentive structures using three incentive structures --- commission base, best only and flat fee --- and two levels of context --- no context and house-selling --- in an experiment in which participants made decisions in a variant of the secretary problem. Key measures of performance were the amount of search and the rounds in which the very best (optimal) offer was chosen. We found that having a commission-based proportional incentive did not produce better performance than having a flat payment for any of the performance measures considered. However, another performance-based incentive --- the best only --- increased the length of their searches and led to more optimal offers. These results applied both when there was no context and when the context was selling a house.http://journal.sjdm.org/19/190423/jdm190423.pdfsequential decision-making secretary problem incentive contextnakeywords |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Yu-Chin Hsiao Simon Kemp |
| spellingShingle |
Yu-Chin Hsiao Simon Kemp The effect of incentive structure on search in the secretary problem Judgment and Decision Making sequential decision-making secretary problem incentive contextnakeywords |
| author_facet |
Yu-Chin Hsiao Simon Kemp |
| author_sort |
Yu-Chin Hsiao |
| title |
The effect of
incentive structure on search in the secretary problem |
| title_short |
The effect of
incentive structure on search in the secretary problem |
| title_full |
The effect of
incentive structure on search in the secretary problem |
| title_fullStr |
The effect of
incentive structure on search in the secretary problem |
| title_full_unstemmed |
The effect of
incentive structure on search in the secretary problem |
| title_sort |
effect of
incentive structure on search in the secretary problem |
| publisher |
Society for Judgment and Decision Making |
| series |
Judgment and Decision Making |
| issn |
1930-2975 |
| publishDate |
2020-01-01 |
| description |
We tested the
effectiveness of performance-based incentive structures using three incentive
structures --- commission base, best only and flat fee --- and two levels of
context --- no context and house-selling --- in an experiment in which
participants made decisions in a variant of the secretary problem. Key measures
of performance were the amount of search and the rounds in which the very best
(optimal) offer was chosen. We found that having a commission-based
proportional incentive did not produce better performance than having a flat
payment for any of the performance measures considered. However, another
performance-based incentive --- the best only --- increased the length of their
searches and led to more optimal offers. These results applied both when there
was no context and when the context was selling a house. |
| topic |
sequential decision-making secretary problem incentive contextnakeywords |
| url |
http://journal.sjdm.org/19/190423/jdm190423.pdf |
| work_keys_str_mv |
AT yuchinhsiao theeffectofincentivestructureonsearchinthesecretaryproblem AT simonkemp theeffectofincentivestructureonsearchinthesecretaryproblem AT yuchinhsiao effectofincentivestructureonsearchinthesecretaryproblem AT simonkemp effectofincentivestructureonsearchinthesecretaryproblem |
| _version_ |
1721487103926206464 |