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Satisficing decision procedure and optimal consumption-leisure choice

Malakhov, Sergey (2012): Satisficing decision procedure and optimal consumption-leisure choice.

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Abstract

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.

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