Minimizing cost in resource-allocation decisions

Abstract

Decisions about resource-allocation are faced by us daily, but only recently has published research explored how people make resource-allocation decisions. Previous studies examined resource-allocation tasks where the goal was to maximize payoff with limited resources. In the present study, we extended the literature by examining resource-allocation problems where the goal was to achieve a fixed objective while minimizing the consumption of resources. We asked participants to minimize cost by scheduling two aircraft with differing personnel and fuel requirements under conditions of certainty, risk, and uncertainty. Results indicated that participants could solve such problems surprisingly well, performing best under certainty and worst under uncertainty.