Modelling the Integration of Costs and Benefits During Decision Making

Mounir Icho; Dilhan J. Thilakarathne; Jan Treur

doi:10.1007/978-3-030-75583-6_22

Modelling the Integration of Costs and Benefits During Decision Making

Mounir Icho, Dilhan J. Thilakarathne, Jan Treur^*

^*Corresponding author for this work

Research output: Chapter in Book / Report / Conference proceeding › Conference contribution › Academic › peer-review

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Abstract

In this paper a computational cognitive model for decision making based on cost-benefit comparison is presented. For such decision making, it is required that the bene-fits of an option gets weighed against the costs. The brain weighs costs against benefits by combining reward and loss signals in the brain into a single, difference-based neural representation of net value, which is accumulated over time until the individual decides to accept or reject an option. The presented model integrates such findings of the litera-ture and is able to explain a person’s decision making behaviour through several sce-narios. A general parameter setting was found that is used throughout all the simulation scenarios.

Original language	English
Title of host publication	Decision Economics
Subtitle of host publication	Minds, Machines, and their Society
Editors	Edgardo Bucciarelli, Shu-Heng Chen, Juan M. Corchado, Javier Parra D.
Publisher	Springer Science and Business Media Deutschland GmbH
Pages	227-237
Number of pages	11
ISBN (Electronic)	9783030755836
ISBN (Print)	9783030755829
DOIs	https://doi.org/10.1007/978-3-030-75583-6_22
Publication status	Published - 2021
Event	2nd International Conference on Decision Economics, DECON 2020 - Virtual, Online Duration: 17 Jun 2020 → 19 Jun 2020

Publication series

Name	Studies in Computational Intelligence
Volume	990
ISSN (Print)	1860-949X
ISSN (Electronic)	1860-9503

Conference

Conference	2nd International Conference on Decision Economics, DECON 2020
City	Virtual, Online
Period	17/06/20 → 19/06/20

Keywords

Benefit
Cost
Financial decision making

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/978-3-030-75583-6_22

Icho2021_Chapter_ModellingTheIntegrationOfCostsAndBenefitsFinal published version, 1.1 MBLicence: Article 25fa Dutch Copyright Act

https://www.researchgate.net/publication/340095226

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Icho, M., Thilakarathne, D. J., & Treur, J. (2021). Modelling the Integration of Costs and Benefits During Decision Making. In E. Bucciarelli, S.-H. Chen, J. M. Corchado, & J. Parra D. (Eds.), Decision Economics: Minds, Machines, and their Society (pp. 227-237). (Studies in Computational Intelligence; Vol. 990). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-030-75583-6_22

Icho, Mounir ; Thilakarathne, Dilhan J. ; Treur, Jan. / Modelling the Integration of Costs and Benefits During Decision Making. Decision Economics: Minds, Machines, and their Society. editor / Edgardo Bucciarelli ; Shu-Heng Chen ; Juan M. Corchado ; Javier Parra D. Springer Science and Business Media Deutschland GmbH, 2021. pp. 227-237 (Studies in Computational Intelligence).

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abstract = "In this paper a computational cognitive model for decision making based on cost-benefit comparison is presented. For such decision making, it is required that the bene-fits of an option gets weighed against the costs. The brain weighs costs against benefits by combining reward and loss signals in the brain into a single, difference-based neural representation of net value, which is accumulated over time until the individual decides to accept or reject an option. The presented model integrates such findings of the litera-ture and is able to explain a person{\textquoteright}s decision making behaviour through several sce-narios. A general parameter setting was found that is used throughout all the simulation scenarios.",

keywords = "Benefit, Cost, Financial decision making",

author = "Mounir Icho and Thilakarathne, {Dilhan J.} and Jan Treur",

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doi = "10.1007/978-3-030-75583-6_22",

language = "English",

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series = "Studies in Computational Intelligence",

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Icho, M, Thilakarathne, DJ & Treur, J 2021, Modelling the Integration of Costs and Benefits During Decision Making. in E Bucciarelli, S-H Chen, JM Corchado & J Parra D. (eds), Decision Economics: Minds, Machines, and their Society. Studies in Computational Intelligence, vol. 990, Springer Science and Business Media Deutschland GmbH, pp. 227-237, 2nd International Conference on Decision Economics, DECON 2020, Virtual, Online, 17/06/20. https://doi.org/10.1007/978-3-030-75583-6_22

Modelling the Integration of Costs and Benefits During Decision Making. / Icho, Mounir; Thilakarathne, Dilhan J.; Treur, Jan.
Decision Economics: Minds, Machines, and their Society. ed. / Edgardo Bucciarelli; Shu-Heng Chen; Juan M. Corchado; Javier Parra D. Springer Science and Business Media Deutschland GmbH, 2021. p. 227-237 (Studies in Computational Intelligence; Vol. 990).

Research output: Chapter in Book / Report / Conference proceeding › Conference contribution › Academic › peer-review

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AB - In this paper a computational cognitive model for decision making based on cost-benefit comparison is presented. For such decision making, it is required that the bene-fits of an option gets weighed against the costs. The brain weighs costs against benefits by combining reward and loss signals in the brain into a single, difference-based neural representation of net value, which is accumulated over time until the individual decides to accept or reject an option. The presented model integrates such findings of the litera-ture and is able to explain a person’s decision making behaviour through several sce-narios. A general parameter setting was found that is used throughout all the simulation scenarios.

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KW - Cost

KW - Financial decision making

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Icho M, Thilakarathne DJ, Treur J. Modelling the Integration of Costs and Benefits During Decision Making. In Bucciarelli E, Chen SH, Corchado JM, Parra D. J, editors, Decision Economics: Minds, Machines, and their Society. Springer Science and Business Media Deutschland GmbH. 2021. p. 227-237. (Studies in Computational Intelligence). Epub 2021 Aug 17. doi: 10.1007/978-3-030-75583-6_22

Modelling the Integration of Costs and Benefits During Decision Making

Abstract

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Conference

Keywords

UN SDGs

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