Exploring influencing factors on rationality: A literature review of dynamic decision-making studies in system dynamics

Abstract

Simulators and experiments studying dynamic decision making offer a way of finding out about factors enforcing and inhibiting human rationality. This literature review of 51 studies from the system dynamics field helps to identify various factors that influence decision making. The factors are classified into model, simulator and player characteristics. In the paper the effect of these variables on gaming performance is reviewed and synthesized. Model characteristics such as presence of delay and increase of feedback strength seem to lower performance, while changes in exogenous conditions lead to mixed results. With regard to simulator characteristics, the decision interval does not seem to influence performance. Model transparency has a positive relation to performance, similar to decision information (in conjunction with player characteristics). Lastly, with regard to player characteristics, there is some evidence that a long-term goal increases performance. Although problem-solving style and mental model characteristics impact performance, no relation between general personality types and performance is found. Also, there are no consistent differences between individuals and pairs with regard to performance. The paper closes with brief comments on future research directions. Copyright © 2004 John Wiley & Sons, Ltd.