Search and Satisficing

S-Tier
Journal: American Economic Review
Year: 2011
Volume: 101
Issue: 7
Pages: 2899-2922

Score contribution per author:

2.691 = (α=2.02 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Many everyday decisions are made without full examination of all available options, and, as a result, the best available option may be missed. We develop a search-theoretic choice experiment to study the impact of incomplete consideration on the quality of choices. We find that many decisions can be understood using the satisficing model of Herbert Simon (1955): most subjects search sequentially, stopping when a "satisficing" level of reservation utility is realized. We find that reservation utilities and search order respond systematically to changes in the decision making environment. (JEL D03, D12, D83)

Technical Details

RePEc Handle
repec:aea:aecrev:v:101:y:2011:i:7:p:2899-2922
Journal Field
General
Author Count
3
Added to Database
2026-01-25