A simple model of decision-making in the application process

In decision-making, individuals often rely on intuition, which can occasionally yield suboptimal outcomes. This study examines the impact of intuitive decision-making on individuals who are confronted with limited position information in the job application process. We propose a measure, the mismatch index, that gauges allocation efficiency by comparing the final application rate to the preset admission rate. By simulation and analytical results, we counter-intuitively find that under the intuitive strategy, acquiring more information does not always lead to more efficient allocation. Furthermore, our research reveals a noteworthy shift from pessimism to intensified competition when the initial application rate exceeds the admission rate, a trend substantiated by observations from field experiments. Additionally, empirical data unveil individual variations in the reliance on intuition, suggesting the existence of inherent adventurous and conservative inclinations. To accommodate these nuances, we introduce an enhancement factor into our model, resulting in improved alignment with real-world data. Notably, our findings underscore that, compared to scenarios characterized by moderate competitiveness, individuals exhibit a stronger inclination towards conservatism in contexts marked by fierce competition or diminished rivalry. These insights offer valuable implications for resource allocation dynamics, particularly within the competitive landscape of the job market.