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Optimal Conflict in Preference Assessment

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  • Philippe Delquié

    (INSEAD, Boulevard de Constance, Fontainebleau 77300, France)

Abstract

Conflict arises in decision making when the choice alternatives present strong advantages and disadvantages over one another, that is, when the trade--offs involved are large. Conflict affects human response to choice, in particular, it increases decision difficulty and response unreliability. On the other hand, larger trade--offs, i.e., higher conflict, reveal more information about an individual's preferences and mitigate the influence of measurement unreliability on preference model estimation. This suggests, somewhat counterintuitively, that there may exist some optimal level of conflict for efficient measurement of preferences. How to determine this level? This issue is examined from behavioral and analytical angles. We outline a general analysis of the interaction between trade--off size and modeling accuracy, and demonstrate its application on a simple example. The kind of analysis developed here can be conveniently implemented in a computer spreadsheet, and would be especially valuable when large amounts of preference data are to be collected, as in consumer preference studies, experimental research, and contingent valuation surveys.

Suggested Citation

  • Philippe Delquié, 2003. "Optimal Conflict in Preference Assessment," Management Science, INFORMS, vol. 49(1), pages 102-115, January.
    • Handle: RePEc:inm:ormnsc:v:49:y:2003:i:1:p:102-115
    DOI: 10.1287/mnsc.49.1.102.12751
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    References listed on IDEAS

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    Cited by:

    1. Kurt A. Carlson & Samuel D. Bond, 2006. "Improving Preference Assessment: Limiting the Effect of Context Through Pre-exposure to Attribute Levels," Management Science, INFORMS, vol. 52(3), pages 410-421, March.
    2. Deparis, Stéphane & Mousseau, Vincent & Öztürk, Meltem & Pallier, Christophe & Huron, Caroline, 2012. "When conflict induces the expression of incomplete preferences," European Journal of Operational Research, Elsevier, vol. 221(3), pages 593-602.
    3. Aloysius, John A. & Davis, Fred D. & Wilson, Darryl D. & Ross Taylor, A. & Kottemann, Jeffrey E., 2006. "User acceptance of multi-criteria decision support systems: The impact of preference elicitation techniques," European Journal of Operational Research, Elsevier, vol. 169(1), pages 273-285, February.

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