Abstract
The way individuals make decisions has been researched from many contexts giving rise to theoretical explanations. Two of these theories, a satisficing model and a reference-dependent model, evolved from this research. The purpose of this study is to explore how well these models explain the decision making observed in a hypothetical entrepreneurial, managerial setting that allocates a limited resource among ten interlocked alternatives over two decision periods. The results show that in this context, decision making is reference dependent. Further analysis demonstrates that a model based on aspiring to a minimal satisfaction level (aspiration seeking) better explains the results.
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