Satisficing decision procedure and optimal consumption-leisure choice
The paper argues that when a consumer searches for a lower price, a satisficing decision procedure equalizes marginal costs of search with its marginal benefit. The consumer can maximize the utility of his consumption-leisure choice with regard to the equality of marginal values of search. Therefore, the satisficing decision procedure results in the optimizing consumer behavior.
|Date of creation:||22 May 2012|
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- Sergey MALAKHOV, 2014.
"Sunk Costs Of Consumer Search: Economic Rationality Of Satisficing Decision,"
Theoretical and Practical Research in Economic Fields,
ASERS Publishing, vol. 0(1), pages 56-62, June.
- Malakhov, Sergey, 2014. "Sunk costs of consumer search: economic rationality of satisficing decision," MPRA Paper 53493, University Library of Munich, Germany.
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- Malakhov, Sergey, 2012. "A paradox of little pre-purchase search for durables: the trade-off between prices, product lifecycle, and savings on purchases," MPRA Paper 37376, University Library of Munich, Germany.
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