IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2008-055.html
   My bibliography  Save this paper

Prior-Free Optimality and Satisficing - A Common Framework and its Experimental Implementation -

Author

Listed:
  • Werner Güth

    (Max Planck Institute of Economics, Jena, Strategic Interaction Group)

Abstract

Similar to welfare economics where with(out) interpersonal comparisons one defines unique (set-valued) welfare (Pareto) optima, we present a framework for one-person decision making where with(out) a prior probability distribution individual optimality prescribes usually a unique (set of) choice(s). Satisfiable aspirations in the sense that there exists some choice guaranteeing them define a much larger choice set whose intersection with the set of prior-free optimal choices is never empty. We also review experimental procedures and results which incentivize aspiration formation and reject even prior-free optimality experimentally.

Suggested Citation

  • Werner Güth, 2008. "Prior-Free Optimality and Satisficing - A Common Framework and its Experimental Implementation -," Jena Economics Research Papers 2008-055, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2008-055
    as

    Download full text from publisher

    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2008/wp_2008_055.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Satisficing; bounded rationality; optimality;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D10 - Microeconomics - - Household Behavior - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2008-055. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Markus Pasche (email available below). General contact details of provider: http://www.jenecon.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.