What Is Non-compensatory Model?

by | Last updated on January 24, 2024

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Non-compensatory models

limit trade-offs among attributes, or between attributes and price that preserve a given preference ordering over alternatives

. Also, we identify different degrees of departure from the fully compensatory model, with important implications for optimal actions derived from a particular model.

What does non compensatory mean?

Definition. In evaluating alternatives, noncompensatory rules

suggest that positive and negative consequences of alternatives do not compensate for each other

. Types of noncompensatory rules include the Conjunctive Rule, the Disjunctive Rule, and the Lexicographic Rule.[1]

What is a compensatory model?

A

multi-attribute model in which one attribute compensates for another in the overall preference for an object or idea

.

What is a non compensatory rule?

Non-compensatory rules

do not admit trade-offs between the relevant attributes of the choice alternatives

as they assume decisions are made on an attribute-by-attribute basis and that the separate utilities are not combined into a single utility value. Perhaps the best known non-compensatory decisior!

What are non compensatory attributes?

Consumers making non-compensatory choices consider

attributes sequentially and benefits

on some attributes may not overbalance shortfalls on others. For example a mother wants to buy freshly squeezed orange juice, but her children dislike the feel of pulp in their mouths and refuse to drink it.

What is compensatory rule?

Definition. In evaluating alternatives, the compensatory rule

suggests that a consumer will select the alternative with the highest overall evaluation on a set of choice criteria

.

What is a compensatory strategy?

Compensatory Techniques are

strategies used to help people perform tasks in an alternative manner or by using adaptive aids

so that they can be more independent. Compensatory techniques also help people learn new tasks.

What is the difference between compensatory and non-compensatory decision making?

A noncompensatory decision-making strategy eliminates alternatives that do

not

meet a particular criterion. A compensatory decision-making strategy weighs the positive and negative attributes of the considered alternatives and allows for positive attributes to compensate for the negative ones.

What is another word for compensatory?


compensating


refunding

adjusting


atoning
balanced balancing reimbursing repaying settling

What is non-compensatory damage?


Non



Compensatory Damages

means any and all

damages

awarded by a court of competent jurisdiction that are penal in nature, including, without limitation,

punitive

, punitory, exemplary, vindictive, imaginary or presumptive

damages

.

What is a non compensatory pause?


The interval on the electrocardiogram that follows a premature atrial contraction (PAC)

. Because PACs reset the sinus pacemaker, the next sinus beat does not appear when it would have if there had been no extra beat.

When should a compensatory model be used?

The Compensatory model helps in

compensating for the low scores on certain predictors

with that of the higher scores that has been on some other predictor. Overall, such compensation helps in arriving at a Total score that averages out any extreme scorings upon various predictors.

What is disjunctive rule?

Disjunctive rule:

a minimally acceptable cut off point is established for each attribute

. The brands are evaluated, and, the brand that falls above the cut off point on any of the attributes is selected. … If a brand ranks considerably high than the others on this attribute, it is selected.

What is the lexicographic rule?

According to the lexicographic decision rule, a

decision alternative is better than another alternative if

and only if it is better than the other alternative in the most important attribute on which the two alternatives differ.

What is a lexicographic approach?


a model used in the study of consumer decision processes to evaluate alternatives

; the idea that if two products are equal on the most important attribute, the consumer moves to the next most important, and, if still equal, to the next most important, etc.

What is linear compensatory rule?

Linear compensatory models, which

involve tradeoffs between product attributes

, have been argued to provide reasonably good predictions of choices made by non- compensatory heuristics, which do not involve tradeoffs.

Ahmed Ali
Author
Ahmed Ali
Ahmed Ali is a financial analyst with over 15 years of experience in the finance industry. He has worked for major banks and investment firms, and has a wealth of knowledge on investing, real estate, and tax planning. Ahmed is also an advocate for financial literacy and education.