Malakhov, Sergey (2012): Satisficing decision procedure and optimal consumption-leisure choice.
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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.
|Item Type:||MPRA Paper|
|Original Title:||Satisficing decision procedure and optimal consumption-leisure choice|
|Keywords:||satisficing, optimizing,consumption, leisure, search, reserve for purchases|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D11 - Consumer Economics: Theory
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
|Depositing User:||Sergey Malakhov|
|Date Deposited:||23. May 2012 13:55|
|Last Modified:||15. Feb 2013 19:18|
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