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Satisficing Equilibrium

Author

Listed:
  • Bary S. R. Pradelski
  • Bassel Tarbush

Abstract

In a satisficing equilibrium each agent $i$ plays one of her top $k_i$ actions in response to the actions of the other agents. Our concept unifies models of bounded rationality and yields predictions that differ from canonical solution concepts. We study its theoretical properties and show that it provides sharp predictions, exists in most games as well as in a broad new class of economic environments, admits standard epistemic and dynamic foundations, and is empirically falsifiable.

Suggested Citation

  • Bary S. R. Pradelski & Bassel Tarbush, 2024. "Satisficing Equilibrium," Papers 2409.00832, arXiv.org, revised Apr 2026.
    • Handle: RePEc:arx:papers:2409.00832
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    File URL: http://arxiv.org/pdf/2409.00832
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    References listed on IDEAS

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    Cited by:

    1. Mete c{S}eref Ahunbay & Paul W. Goldberg & Edwin Lock & Panayotis Mertikopoulos & Bary S. R. Pradelski & Bassel Tarbush, 2026. "The Computational Intractability of Not Worst Responding," Papers 2602.10966, arXiv.org.

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