A challenging issue in modern choice theory is how to enrich the kind of data available to the researcher along with our understanding of the decision-making process. We propose an axiomatic characterization of the ‘satisficing’ heuristic under various informational structures. In particular we examine the cases in which search behavior is both observable, partially observable, and unobservable. We also investigate behavioral definitions of preference and satisfaction and establish uniqueness results. Finally, we relate our framework to several well-known existing models.
Bibliographical noteThis paper is based on a chapter of my PhD dissertation. I would like to thank Jose Apesteguia, Miguel A. Ballester, Barton Lipman, Paola Manzini, Marco Mariotti, Ricardo A. Marques Pereira, Yusufcan Masatlioglu, Luigi Mittone, William Neilson, Nicholas C. Yannelis, and two anonymous referees for their helpful suggestions. I am also grateful to the seminar audience at the universities Autonoma de Barcelona, Pompeu Fabra, St.Andrews, and Trento and the participants at the 11th SAET meeting (2011, Faro) and EEA-ESEM conference (2011, Oslo) for their interesting comments. Financial support from the Scottish Institute for Economic Research is gratefully acknowledged. Any error is my own responsibility.
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