- A-Z
- Jena Economic Resea...
- Volume 2
- Prior-Free Optimali...
Prior-Free Optimality and Satisficing
- A Common Framework and its Experimental Implementation -
- Autor(in)
- Erschienen
- 2. Juli 2008
- Nummer des Discussion-Papers
-
2008-055
- Schlagwort(e)
-
bounded rationality
optimality
satisficing
- Zusammenfsg.
-
Similar to welfare economics where with(out) interpersonal comparisons one defines unique (set-valued) welfare (Pareto) optima, we present a framework for one-person decision making where with(out) a prior probability distribution individual optimality prescribes usually a unique (set of) choice(s). Satisfiable aspirations in the sense that there exists some choice guaranteeing them define a much larger choice set whose intersection with the set of prior-free optimal choices is never empty. We also review experimental procedures and results which incentivize aspiration formation and reject even prior-free optimality experimentally.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- economics
- JEL-Classification for JER
- B4 - Economic Methodology; D81 - Criteria for Decision-Making under Risk and Uncertainty ; D10 - General