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Ordinal Relative Satisficing Behavior: Theory and Experiments

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  • Salvador Barberà
  • Alejandro Neme

Abstract

We propose a notion of rrationality, a relative version of satiscing behavior based on the idea that, for any set of available alternatives, individuals choose one of their rbest according to a single preference. We fully characterize the choice functions satisfying the condition for any r, and provide an algorithm to compute the maximal degree of rrationality associated with any given choice function. The notion is extended to individuals whose r may vary with the set of available alternatives. We provide experimental evidence that the predictive power of our theory, measured by Seltens index, improves upon that of alternative ones.

Suggested Citation

  • Salvador Barberà & Alejandro Neme, 2015. "Ordinal Relative Satisficing Behavior: Theory and Experiments," Working Papers 790, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:790
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    References listed on IDEAS

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    Cited by:

    1. Chambers, Christopher P. & Yenmez, M. Bumin, 2018. "A simple characterization of responsive choice," Games and Economic Behavior, Elsevier, vol. 111(C), pages 217-221.

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    More about this item

    Keywords

    choice; rationality; satiscing behavior; Rationalizability; preferences; choice functions .;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D60 - Microeconomics - - Welfare Economics - - - General

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