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Satisficing in sales competition: experimental evidence

Listed author(s):
  • Siegfried Berninghaus
  • Werner Güth
  • M. Vittoria Levati

    ()

  • Jianying Qiu

    ()

In a stochastic duopoly market, sellers must form state-specific aspirations expressing how much they want to earn given their expectations about the other's behavior. We define individually and mutually satisficing sales behavior for given individual beliefs and aspiration profiles. In a first experimental phase, whenever satis¯cing is not possible, beliefs or aspirations have to be adapted, or other strategy profiles must be found. In a second phase, participants are free to select non-satisficing sales profiles. The results reveal that most people are satisficers who, either mandatorily or deliberately, tend to adjust aspiration levels if they cannot be satisfied.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2006-32.

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Length: 31 pages
Date of creation: Dec 2006
Handle: RePEc:esi:discus:2006-32
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