<p> Starting from well-known studies by Kahmenan and Tversky, researchers have found many examples when our decision making seems to be irrational. We show that this seemingly irrational decision making can be explained if we take into account that human abilities to process information are limited. As a result, instead of the exact <i>values</i> of different quantities, we operate with <i>granules</i> that contain these values. On several examples, we show that optimization under such granularity restriction indeed leads to observed human decision making. Thus, granularity helps explain seemingly irrational human decision making.</p><p> Similar arguments can be used to <i>explain</i> the success of <i>heuristic techniques</i> in expert decision making. We use these explanations to <i>predict</i> the <i>quality</i> of the resulting <i>decisions.</i> Finally, we explain how we can <i> improve</i> on the existing <i>heuristic techniques</i> by formulating and solving the corresponding optimization problems.</p>
| Identifer | oai:union.ndltd.org:PROQUEST/oai:pqdtoai.proquest.com:10000752 |
| Date | 28 January 2016 |
| Creators | Lorkowski, Joseph A. |
| Publisher | The University of Texas at El Paso |
| Source Sets | ProQuest.com |
| Language | English |
| Detected Language | English |
| Type | thesis |
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