Is Satisficing Absorbable? - An Experimental Study

Werner Güth (), Maria Vittoria Levati () and Matteo Ploner

Papers on Strategic Interaction from Max Planck Institute of Economics, Strategic Interaction Group

Abstract: We experimentally investigate whether the satisficing approach is absorbable, i.e., whether it still applies after participants become aware of it. In a setting where an investor decides between a riskless bond and either one or two risky assets, we familiarize participants with the satisficing calculus applied to specific portfolio selection tasks. After experiencing this calculus repeatedly, participants are free to use it or to select their portfolio freely. The results support, to some extent, the absorbability of the satisficing approach.

Keywords: Theory absorption; Satisficing behavior; Portfolio selection (search for similar items in EconPapers)
JEL-codes: C91 D81 G11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-evo, nep-exp, nep-fin and nep-fmk
Date: 2006-07
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