Abstract
Classical choice theory assumes that a decision-maker considers all feasible alternatives. However, a decision-maker in the real world can not consider all alternatives because of limited attention. In this paper, we propose a satisficing choice model to describe the choice procedure based on the incomplete preferences under the limited attention of the decision-maker. Moreover, the existence and rationality properties of the satisficing choice model on the different domains are studied combined with some proposed rationality conditions. Further, the proposed satisficing choice model is applied to a case of quality competition. Results show that the satisficing choice model of this paper is of a certain theoretical guiding significance to a kind of emergency decisions made by decision-makers under the circumstance of time pressure and limited information. It can also be the theoretical foundation for the study on the boundedly rational decision-making.
Highlights
Classical choice theory assumes that a decision-maker (DM) is fully rational. is implies that she perceives all the given alternatives before deciding, has infinite computational capabilities, and always chooses the best alternative from the set of alternatives according to an invariant preference relation
Motivated by the challenge of remedying the abovementioned insufficient research on the satisficing heuristic and inspired by the work of Papi [9], this study proposes a satisficing heuristic decision-making model based on incomplete preferences under limited attention
If there exists an alternative which is not inferior to xs, it is considered to be satisfactory. e DM searches through the sequence Aj. If she identifies at least one satisfactory alternative in the first stage, she stops searching at A1, which becomes the consideration set, and chooses one satisfactory alternative in A1
Summary
Classical choice theory assumes that a decision-maker (DM) is fully rational. is implies that she perceives all the given alternatives before deciding, has infinite computational capabilities, and always chooses the best alternative from the set of alternatives according to an invariant preference relation. Simon [4] presented further the principle of satisficing heuristic, that is, individuals discover and analyze alternatives sequentially and stop searching as soon as they identify the first alternative that they judge to be satisfactory. Aguiar et al [17] developed necessary and sufficient conditions for stochastic choice data to be consistent with satisficing, assuming that preferences are fixed, but search order may change randomly. In the abovementioned study of the satisficing heuristic, a complete preference relation is a common assumption under the limited attention of the DM. Motivated by the challenge of remedying the abovementioned insufficient research on the satisficing heuristic and inspired by the work of Papi [9], this study proposes a satisficing heuristic decision-making model based on incomplete preferences under limited attention.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
