Satisficing decision procedure and optimal consumption-leisure choice

Sergey Malakhov

MPRA Paper from University Library of Munich, Germany

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.

Keywords: satisficing; optimizing; consumption; leisure; search; reserve for purchases (search for similar items in EconPapers)
JEL-codes: D11 D83 (search for similar items in EconPapers)
Date: 2012-05-22
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://mpra.ub.uni-muenchen.de/38964/1/MPRA_paper_38964.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/42230/1/MPRA_paper_42230.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/49461/1/MPRA_paper_49461.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/57393/1/MPRA_paper_57393.pdf revised version (application/pdf)

Related works:
Journal Article: Satisficing Decision Procedure and Optimal Consumption-Leisure Choice (2014)
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