Human Decision Making with Bounded Rationality

Baocheng Geng, Qunwei Li, Pramod K. Varshney

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In critical environments that require a high accuracy of decisions, utilizing human cognitive strengths and expertise in addition to machine observations is advantageous to improve decision quality and enhance situational awareness. While the current literature on human decision making is primarily based on the paradigm of perfect rationality, humans are subject to decision noise and employ stochastic choice rules. Human decision making under such realistic environments needs to be further studied. In this paper, instead of assuming that a human selects the optimal action with probability one, we employ a bounded rationality choice model where all the actions are candidates for selection, but better options are chosen with higher probabilities. In a Bayesian hypothesis testing framework, we evaluate the individual decision making performance when humans have different degrees of bounded rationality. Furthermore, we analyze the decision fusion rule for a team of two human agents and characterize the asymptotic performance of collaborative decision making as the number of human participants becomes large.

Original languageEnglish (US)
Title of host publication2022 IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2022 - Proceedings
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages5493-5497
Number of pages5
ISBN (Electronic)9781665405409
DOIs
StatePublished - 2022
Event47th IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2022 - Virtual, Online, Singapore
Duration: May 23 2022May 27 2022

Publication series

NameICASSP, IEEE International Conference on Acoustics, Speech and Signal Processing - Proceedings
Volume2022-May
ISSN (Print)1520-6149

Conference

Conference47th IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2022
Country/TerritorySingapore
CityVirtual, Online
Period5/23/225/27/22

Keywords

  • bounded rationality
  • decision fusion in multi-agent systems
  • Human decision making
  • stochastic decision choice

ASJC Scopus subject areas

  • Software
  • Signal Processing
  • Electrical and Electronic Engineering

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