October 21, 2005 12:18masterSheet number 47 Page number 31Choice31The Satisficing ProcedureThe fact that we can present any choice function satisfying con-dition∗(or WA) as an outcome of the optimization of some pref-erence relation is a key argument for the view that the scope ofmicroeconomic models is much wider than that of the models inwhich agents carry out explicit optimization. But have we indeedexpanded the scope of economic models beyond the circumstancesin which decision makers carry out explicit optimization?Consider the following “decision scheme,” namedsatisficingbyHerbert Simon. Letv:X→be a valuation of the elements inX,and letv∗∈be a threshold of satisfaction. LetObe an ordering ofthe alternatives inX. Given a setA, the decision maker arranges theelements of this set in a listL(A,O)according to the orderingO. Hethen chooses the first element inL(A,O)that has av-value at leastas large asv∗. If there is no such element inA
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Prime number, Herbert Simon, ﬁrst satisfactory element