Satisficing in Financial Decision Making - A Theoretical and Experimental Approach to Bounded Rationality

Gerlinde Fellner-Röhling, Werner Güth, Boris Maciejovsky

Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung

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.
OriginalspracheEnglisch
Seiten (von - bis)26 - 33
FachzeitschriftJournal of Mathematical Psychology
Jahrgang53
Ausgabenummer1
DOIs
PublikationsstatusVeröffentlicht - 1 Apr. 2009

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