DFT-D: a cognitive-dynamical model of dynamic decision making

Abstract

The study of decision making has traditionally been dominated by axiomatic utility theories. More recently, an alternative approach, which focuses on the micro-mechanisms of the underlying deliberation process, has been shown to account for several “paradoxes” in human choice behavior for which simple utility-based approaches cannot. Decision field theory (DFT) is a cognitive-dynamical model of decision making and preferential choice, built on the fundamental principle that decisions are based on the accumulation of subjective evaluations of choice alternatives until a threshold criterion is met. This article extends the basic DFT framework to the domain of dynamic decision making. DFT-Dynamic is proposed as a new alternative to normative backward induction. Through its attention to the processes underlying planning and deliberation DFT-D provides simple, emergent explanations for violations of choice principles traditionally taken as evidence of irrationality. A recent multi-stage decision making study is used to showcase the model’s efficacy for developing cognitive models of individual strategies.