Satisficing Decision Procedure and Optimal Consumption-Leisure ChoiceInternational Journal of Social Science Research (2014)
The paper argues that a satisficing consumer decision equalizes marginal costs of search for satisficing price with the marginal benefit of search where the marginal costs of search are equal to the marginal loss in labor income and the marginal benefit of search is equal to the marginal savings on purchase. When the liquidity constraint is soft, a consumer maximizes the utility of his consumption-leisure choice with regard to the equality of marginal values of search. Therefore, the satisficing decision becomes optimal. And the equilibrium price of the satisficing optimal choice becomes equal to the willingness to accept.
- savings on purchase,
Publication DateSummer July 1, 2014
Citation InformationSergey V. Malakhov. "Satisficing Decision Procedure and Optimal Consumption-Leisure Choice" International Journal of Social Science Research Vol. 2 Iss. 2 (2014)
Available at: http://works.bepress.com/sergey_malakhov/4/