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dc.contributor.authorDurbach, Ian N.
dc.contributor.authorAlgorta, Simón
dc.contributor.authorKantu, Dieudonné Kabongo
dc.contributor.authorKatsikopoulos, Konstantinos V.
dc.contributor.authorŞimşek, Özgür
dc.identifier.citationDurbach , I N , Algorta , S , Kantu , D K , Katsikopoulos , K V & Şimşek , Ö 2020 , ' Fast and frugal heuristics for portfolio decisions with positive project interactions ' , Decision Support Systems , vol. 138 , 113399 .
dc.identifier.otherPURE: 270410395
dc.identifier.otherPURE UUID: 4673c8c6-29b0-4503-bfef-1e436790c1d7
dc.identifier.otherRIS: urn:FAF9702AB337F4162319647F3B333436
dc.identifier.otherScopus: 85090546501
dc.identifier.otherORCID: /0000-0003-0769-2153/work/81406335
dc.identifier.otherWOS: 000576663200003
dc.descriptionFunding: ID is supported in part by funding from the National Research Foundation of South Africa (Grant ID 90782, 105782).en
dc.description.abstractWe consider portfolio decision problems with positive interactions between projects. Exact solutions to this problem require that all interactions are assessed, requiring time, expertise and effort that may not always be available. We develop and test a number of fast and frugal heuristics – psychologically plausible models that limit the number of assessments to be made and combine these in computationally simple ways – for portfolio decisions. The proposed “add-the-best” family of heuristics constructs a portfolio by iteratively adding a project that is best in a greedy sense, with various definitions of “best”. We present analytical results showing that information savings achievable by heuristics can be considerable; a simulation experiment showing that portfolios selected by heuristics can be close to optimal under certain conditions; and a behavioral laboratory experiment demonstrating that choices are often consistent with the use of heuristics. Add-the-best heuristics combine descriptive plausibility with effort-accuracy trade-offs that make them potentially attractive for prescriptive use.
dc.relation.ispartofDecision Support Systemsen
dc.rightsCopyright © 2020 Elsevier B.V. All rights reserved. This work has been made available online in accordance with publisher policies or with permission. Permission for further reuse of this content should be sought from the publisher or the rights holder. This is the author created accepted manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at
dc.subjectDecision makingen
dc.subjectDecision analysisen
dc.subjectPortfolio selectionen
dc.subjectBehavioral decision makingen
dc.subjectGE Environmental Sciencesen
dc.subjectQA Mathematicsen
dc.titleFast and frugal heuristics for portfolio decisions with positive project interactionsen
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews. School of Mathematics and Statisticsen
dc.contributor.institutionUniversity of St Andrews. Centre for Research into Ecological & Environmental Modellingen
dc.description.statusPeer revieweden

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