Quotation Fellner, Gerlinde, Güth, Werner, Maciejovsky, Boris. 2009. Satisficing in Financial Decision Making - A Theoretical and Experimental Approach to Bounded Rationality. Journal of Mathematical Psychology 53 (1): 26-33.


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Abstract

We apply the theoretical construct of bounded rationality to an investment game, allowing participants to invest their monetary endowment in riskless bonds and risky assets. In our experiment, we elicit aspiration levels from participants: one captures a subsistence threshold, the other a success threshold. Participants can be classified according to these aspirations and the corresponding investment behavior. We differentiate between potential and actual satisficing. By presupposing specific cardinal utility functions, we also relate the bounded rationality approach to the traditional rational choice model.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Mathematical Psychology
Citation Index SSCI
Language English
Title Satisficing in Financial Decision Making - A Theoretical and Experimental Approach to Bounded Rationality
Volume 53
Number 1
Year 2009
Page from 26
Page to 33
Reviewed? Y
URL http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6WK3-4VDSJTS-1&_user=464393&_coverDate=02%2F28%2F2009&_rdoc=5&_fmt=high&_orig=browse&_srch=doc-info(%23toc%236895%232009%23999469998%23941070%23FLA%23display%23Volume)&_cdi=6895&_sort=d&_docanchor=&_ct=10&_acct=C000022138&_version=1&_urlVersion=0&_userid=464393&md5=d1771dc3f0b1cad9d87e5247e8bf9cf2

Associations

People
Fellner, Gerlinde (Former researcher)
External
Güth, Werner (Max Planck Institute of Economics, Germany)
Maciejovsky, Boris (Massachusetts Institute of Technology, United States/USA)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
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