Individuals’ Decisions in the Presence of Multiple Goals

  • Benedict Dellaert Benedict Dellaert
  • A.A.J. Marley A.A.J. Marley
  • Bas Donkers Bas Donkers
  • Caspar Chorus Caspar Chorus
  • Elisabetta Cherchi Elisabetta Cherchi
  • Elizabeth E. Bruch Elizabeth E. Bruch
  • Fred M. Feinberg Fred M. Feinberg
  • Joffre Swait Joffre Swait
  • Linda Court Salisbury Linda Court Salisbury
  • Theo Arentze Theo Arentze
  • Wiktor L. Vic Adamowicz Wiktor L. Vic Adamowicz

This paper develops new directions on how individuals’ use of multiple goals can be incorporated in econometric models of individual decision-making. We start by outlining key components of multiple, simultaneous goal pursuit and multi-stage choice. Since different goals are often only partially compatible, such a multiple goal-based approach implies balancing goals, leading to a deliberate goal-level choice strategy on the part of the decision-maker. Accordingly, we introduce a conceptual framework to classify different aspects of individuals’ decisions in the presence of multiple goals. Based on this framework, we propose a formalization of individual decision-making when pursuing multiple goals. We briefly review different previous streams on goal-based decision-making and how the proposed goal-driven conceptual framework relates to earlier research in discrete choice models. The framework is illustrated using examples from different domains, in particular marketing, environmental economics, transportation, and sociology. Finally, we discuss identification and modeling needs for goal-based choice strategies and opportunities for further research.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

MORE ABOUT NETSPAR


Mission en strategy           •           Network           •           Organisation           •          Magazine
Board Brief            •            Actionplan 2023-2027           •           Researchagenda

ABOUT NETSPAR

Our partners

B20231704_DNB_Blacklogo
svb
B20211216_shell download
B20160708_uva
B20200924_Ortec Finance logo 250px_banner_small
View all partners