On the Computational Complexity of Consumer Decision Rules

A consumer entering a new bookstore can face more than 250,000alternatives. The efficiency of compensatory and noncompensatory decisionrulesfor finding a preferred item depends on the efficiency of their associatedinformation operators. At best, item-by-item information operators lead tolinear computational complexity; set information operators, on the other hand,can lead to constant complexity. We perform an experiment demonstrating thatsubjects are approximately rational in selecting between sublinear and linearrules. Many markets are organized by attributes that enable consumers toemploya set-selection-by-aspect rule using set information operations. In cyberspacedecision rules are encoded as decision aids.