Satisficing decision procedure and optimal consumption-leisure choice

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

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.

• Item Type: MPRA Paper
• Language: English
• 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

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