A simple satisficing model

Citation

Sandorf ED, Campbell D & Chorus C (2022) A simple satisficing model. PLOS ONE, 17 (10), Art. No.: e0275339. https://doi.org/10.1371/journal.pone.0275339

Abstract
Economic theory is built on the assumption that people are omniscient utility maximizers. In reality, this is unlikely to be true and often people lack information about all alternatives that are available to them; either because the information is unavailable or that the cost of searching for and evaluating that information is high. In this paper, we develop a simple and tractable model that captures satisficing behavior. We show that the model can retrieve consistent parameters under a large range of experimental conditions. We test our model on synthetic data and present an empirical application. We discuss the implications of our results for the use of satisficing choice models in explaining choice.

Keywords
Multidisciplinary

Journal
PLOS ONE: Volume 17, Issue 10

• Published version