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Satisficing decision procedure and optimal consumption-leisure choice

By Sergey Malakhov

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.

Topics: D11 - Consumer Economics: Theory, D83 - Search; Learning; Information and Knowledge; Communication; Belief
Year: 2012
DOI identifier: 10.5296/ijssr.v2i2.6158
OAI identifier: oai:mpra.ub.uni-muenchen.de:42230

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