Logo
Munich Personal RePEc Archive

Satisficing decision procedure and optimal consumption-leisure choice

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

Warning
There is a more recent version of this item available.
[thumbnail of MPRA_paper_49461.pdf]
Preview
PDF
MPRA_paper_49461.pdf

Download (830kB) | Preview

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. The paper formulates the analytical relationship between savings on purchase, willingness to pay, and the time horizon of the consumption-leisure choice, which can be verified by careful psychological field studies.

Available Versions of this Item

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.