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Area of Science:

  • Cognitive psychology
  • Decision science
  • Behavioral economics

Background:

  • Transitivity of preference (ToP) is a core axiom in rational choice theory.
  • Violations of ToP are rare but have been reported, prompting investigation into their causes.
  • Understanding conditions promoting transitive versus intransitive preferences is crucial.

Purpose of the Study:

  • To investigate ToP violations using a statistically sound method and a novel experimental design.
  • To introduce and test cognitive heuristics and probabilistic models predicting ToP violations.
  • To identify factors influencing ToP adherence and the mechanisms behind violations.

Main Methods:

  • Employed a statistically adequate data analysis method (Regenwetter et al., 2011).
  • Utilized an experimental design with single visual displays to prevent presentation artifacts.
  • Developed and evaluated two cognitive heuristics and their corresponding probabilistic choice models across three experiments, including a replication.

Main Results:

  • Confirmed the presence of ToP violations.
  • Found that presenting choices in a way that facilitates within-alternative integration significantly enhances ToP adherence.
  • Demonstrated that the proposed heuristic models successfully explain observed ToP violations.

Conclusions:

  • The study provides evidence for ToP violations under specific conditions.
  • Within-alternative integration is a key factor in promoting preference transitivity.
  • Cognitive heuristics offer a viable explanation for intransitive preferences in decision-making.