2024 (21), №2

Triple-System Theory of Individual Decision-Making Based on the Concept of Flux

For citation: 

Istratov, V. A. (2024). Triple-System Theory of Individual Decision-Making Based on the Concept of Flux. AlterEconomics, 21(2), 363–386. https://doi.org/10.31063/AlterEconomics/2024.21-2.11

Abstract:

Although the topic of human decision-making is as vast as it is old, there is still no widely recognized computational model in both economic theory and interdisciplinary studies. This study aims to address this gap by introducing a computer model of decision-making based on three interconnected systems: habitual, emotional, and rational. These systems operate distinctly within the model, varying in speed and flexibility, which sets it apart from prevalent approaches in economic theory. Central to the model are personal motives and the flux system, which registers and processes changes in individuals and their environment. The flux also serves as a universal comparator, translating quantitative concepts into qualitative ones. The integration of these three decision-making factors simultaneously enhances the model’s comprehensiveness and accuracy compared to dual-process theories. This approach prioritizes practicality by minimizing abstraction compared to existing models, thereby enhan­cing the precision of its conclusions. It has the potential to be integrated into computational models or software designed for human decision-making, aiming to offer a more universal, precise, and practical alternative. Validation with real-world data is crucial to justify its enhanced computational complexity.

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Victor A. Istratov — Cand. Sci (Econ.), Leading Research Associate, Central Economics and Mathematics Institute of the Russian Academy of Sciences; http://orcid.org/0000-0001-6552-0208 (47, Nakhimovsky Ave, Moscow, 117418, Russian Federation; e-mail: veeque@mail.ru).

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