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Rubinstein2005-page49 - 12:18 master Sheet number 47 Page...

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October 21, 2005 12:18 master Sheet number 47 Page number 31 Choice 31 The Satisficing Procedure The 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 of microeconomic models is much wider than that of the models in which agents carry out explicit optimization. But have we indeed expanded the scope of economic models beyond the circumstances in which decision makers carry out explicit optimization? Consider the following “decision scheme,” named satisficing by Herbert Simon. Let v : X be a valuation of the elements in X , and let v be a threshold of satisfaction. Let O be an ordering of the alternatives in X . Given a set A , the decision maker arranges the elements of this set in a list L ( A , O ) according to the ordering O . He then chooses the first element in L ( A , O ) that has a v -value at least as large as v . If there is no such element in A
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